TORONTO, July 25, 2018 /CNW/ - Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the "Company") reports an initial independent mineral resource estimate for the Zone 58N gold deposit located six kilometres south of its 100% owned Detour Lake gold mine.
The mineral resource estimate is comprised of an Indicated resource of 2.87 million tonnes grading 5.80 g/t for 534,300 ounces of gold and an Inferred resource of 0.97 million tonnes grading 4.35 g/t for 136,100 ounces of gold.
| Mineral Resources | Tonnes (millions) | Grade (g/t Au) | Contained Gold Ounces |
| Zone 58N | Indicated | 2.87 | 5.80 | 534,300 |
| Inferred | 0.97 | 4.35 | 136,100 |
| Note: Numbers may not total due to rounding. | |
| | | | | |
Michael Kenyon, Interim CEO, commented: "Detour Gold is in the fortunate position of having a large mineral reserve base of 16.0 million ounces supporting a mine life of 23 years. The strategy undertaken over the last few years in advancing Zone 58N is to leverage the infrastructure we have in this prospective gold camp by finding high grade satellite deposits within trucking distance to our mill. With this initial resource at Zone 58N, which remains open at depth, and other prospective targets we have identified in our exploration programs, we are beginning to demonstrate the benefits of this strategy, and look forward to further advancing Zone 58N and other future discoveries on our large 647 km2 land position."
The resource estimate for Zone 58N incorporates the assay results from 332 diamond drill holes totaling 109,700 metres. Drill spacing is approximately 25 x 25 metres in the upper 500 metres of the deposit and 40 x 40 metres below 500 metres. The mineral resource model only considers mineralized zones that are potentially mineable by underground extraction and contained within the modelled wireframes. The block model was prepared and constrained using 3D wireframes of geological domains that are associated with gold mineralization. Grade estimation was interpolated into blocks using a combination of Inverse Distance Cubed (ID3) and Nearest Neighbor (NN). The mineral resource was reported using a gold cut-off grade of 2.2 g/t and a minimum true thickness of 3 metres.
The gold mineralization within Zone 58N is hosted in a swarm of tonalitic dykes that intrude mafic volcanic rocks and are spatially controlled by the margin of a large intermediate intrusion. Gold mineralization is found in quartz-tourmaline-carbonate veins containing less than 5% sulphides. The east-west mineralized system extends along a strike length of 450 metres, from surface to a depth of 800 metres. It remains open for expansion at depth.
Metallurgical testing performed on a total of 31 composites has confirmed that Zone 58N mineralization is amendable for processing through the existing Detour Lake processing plant. All composites were tested for grinding, gravity separation and cyanide leaching of both gravity products (concentrate and tails). Based on these initial tests, gold recovery is estimated at 97.5% for the stated mineral resource grade.
To view Zone 58N figures, click on the following link:
https://www.detourgold.com/operations/exploration/default.aspx
Further details regarding Zone 58N mineral resource will be included in the Technical Report to be filed for the updated life of mine plan for the Detour Lake operation.
Next Steps
The Company is proceeding with a cost evaluation for an advanced underground exploration program. This program would include site access and surface infrastructure, and underground development (i.e. access to mineralized zones and platform for further exploration drilling). Subject to a positive evaluation, the Company would determine the appropriate timeline for the program.
Qualified Persons
The mineral resource estimate for Zone 58N was prepared under the supervision of Rjean Sirois, Eng., Vice President Geology and Resources for G Mining Services Inc., a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("NI 43-101").
The scientific and technical information contained in this news release was reviewed and approved by Rjean Sirois, Eng. and Drew Anwyll, P.Eng., Senior Vice President Technical Services for Detour Gold, a Qualified Person as defined by NI 43-101.
Notes on Estimation Method
- Reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") standards for mineral resources and reserves, adopted by CIM Council, as amended.
- All HQ and NQ core assays obtained by analytical methods described in the March 2017 Technical Report under Section 11.3.3. Quality Assurance and quality control procedures included the systematic insertion of blanks, standards, and duplicates into the sample stream.
- Mineral resources reported at a cut-off grade of 2.2 g/t Au, using a gold price of US$1,300 per ounce and a US$/C$ exchange rate of 1.25 with an assumed mining dilution of 12%.
- Mineralized domains were modeled using selections of mineralized intervals based on varying degrees of visual alteration (sulphide, sericite, and quartz veining) due to good correlation with the gold mineralization. Based on the nuggetty nature of the gold mineralization and limited strike length continuity, a grade-based approach to establish domains was not used.
- Mineral resource encompasses 10 domains, each defined by its individual 3D wireframe with a minimum true thickness of 3.0 metres. Domains are subvertical, strike east-west, with the two largest domains plunging 85 degrees to the east.
- High grade gold assays were capped at values ranging from 20 to 120 g/t Au depending on the domain.
- Bulk density value of 2.7 t/m3.
- Interpolation completed using 2 metre composites. The block grade estimate used 1-pass nearest neighbor (NN) and 4-pass Inverse Distance Cubed (ID3) interpolation method.
- Block model uses block sizes of 5 x 3 x 5 metres.
- Mineral resources are not mineral reserves as they do not have demonstrated economic viability.
About Detour Gold
Detour Gold is an intermediate gold producer in Canada that holds a 100% interest in the Detour Lake mine, a long life large-scale open pit operation. Detour Gold's shares trade on the Toronto Stock Exchange under the trading symbol DGC.
For further information, please contact:
Michael Kenyon, Interim CEO
Tel: (416) 304.0800
Laurie Gaborit, VP Investor Relations
Tel: (416) 304.0581
Detour Gold Corporation, Commerce Court West, 199 Bay Street, Suite 4100, P.O. Box 121, Toronto, Ontario M5L 1E2
Information Concerning Estimates of Mineral Reserves and Resources
These estimates have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States' securities laws. The terms "mineral reserve", "proven mineral reserve and "probable mineral reserve" are Canadian mining terms as defined in accordance with NI 43-101 and the CIM Definition Standards. The CIM Definition Standards differ from the definitions in the United States Securities and Exchange Commission ("SEC") Guide 7 ("SEC Guide 7") under the United States Securities Act of 1933, as amended. Under SEC Guide 7, a "final" or "bankable" feasibility study is required to report mineral reserves, the three-year historical average price is used in any mineral reserve or cash flow analysis to designate mineral reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. In addition, the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in NI 43-101 and recognized by Canadian securities laws but are not defined terms under SEC Guide 7 or recognized under U.S. securities laws. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be upgraded to mineral reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever by upgraded to a higher category. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Accordingly, these mineral reserve and mineral resource estimates and related information may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal laws and the rules and regulations thereunder, including SEC Guide 7.
Mineral resources are not mineral reserves, and do not have demonstrated economic viability, but do have reasonable prospects for economic extraction. Measured and indicated mineral resources are sufficiently well defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the resource. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. There is no certainty that mineral resources of any category can be upgraded to mineral reserves through continued exploration.
Detour Gold's mineral reserve and mineral resource figures are estimates and Detour Gold can provide no assurances that the indicated levels of gold will be produced or that Detour Gold will receive the gold price assumed in determining its mineral reserves. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that these mineral reserve and mineral resource estimates are well established and the best estimates of Detour Gold's management, by their nature mineral reserve and mineral resource estimates are imprecise and depend, to a certain extent, upon analysis of drilling results and statistical inferences which may ultimately prove unreliable. If the Company's mineral reserve or mineral reserve estimates are inaccurate or are reduced in the future, this could have an adverse impact on Detour Gold's future cash flows, earnings, results or operations and financial condition.
Cautionary Note regarding Forward-Looking Information
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements, including those herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release speak only as of the date of this news release or as of the date or dates specified in such statements.
Specifically, this press release contains forward-looking statements regarding the Company proceeding with a cost evaluation for an advanced underground exploration program and, subject to a positive evaluation, determining the appropriate timeline for the program. Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, the results of the final revised life of mine plan, gold price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation and regulation, support of the Company's Aboriginal communities, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the gold exploration, development and production industry, as well as those risk factors listed in the section entitled "Description of Business - Risk Factors" in Detour Gold's 2017 Annual Information Form ("AIF") and in the continuous disclosure documents filed by Detour Gold on and available on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect forward-looking statements. Actual results and developments and the results of the final revised life of mine plan are likely to differ, and may differ materially or materially and adversely, from those expressed or implied by forward-looking statements, including those contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for exploration and development activities; operating and capital costs; results of operations; the Company's available cash resources; the Company's ability to attract and retain skilled staff; the mine development and production schedule and related costs; dilution control; sensitivity to metal prices and other sensitivities; the supply and demand for, and the level and volatility of the price of, gold; timing of the receipt of regulatory and governmental approvals for development projects and other operations; the timing and results of consultations with the Company's Aboriginal partners; the supply and availability of consumables and services; the exchange rates of the Canadian dollar to the U.S. dollar; energy and fuel costs; required capital investments; estimates of net present value and internal rate of returns; the accuracy of mineral reserve and mineral resource estimates, production estimates and capital and operating cost estimates and the assumptions on which such estimates are based; market competition; ongoing relations with employees and impacted communities and general business and economic conditions; and general business and economic conditions.
The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.
SOURCE Detour Gold