TORONTO, ONTARIO -- (Marketwired) -- 07/09/13 -- Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the "Company") reports its second quarter operational update on the Detour Lake mine located in northeastern Ontario. The Company continues to advance the ramp-up of the mine and remains on schedule to declare commercial production in the third quarter of 2013. The Company will host a conference call on Wednesday July 10 at 10:00 a.m. Eastern Time.
Second Quarter Highlights
-- Mine and mill ramp-up making positive progress through the quarter-- Gold production of 57,897 ounces-- Mill facility processing rates averaging 31,500 tonnes per calendar day-- Throughput record day of 56,000 tonnes processed on June 30-- Daily throughput levels exceeded 40,000 tonnes processed for 15 days in June-- Commissioning of gravity circuit for first production line started in June-- Tailings dam construction for 2014 mining operation 80% complete and ahead of schedule (completion expected in August)
Gerald Panneton, President and CEO commented, "The Company has made steady progress in the ramp-up of the Detour Lake gold mine in the second quarter. During the month of June, the mill achieved throughput levels above 40,000 tonnes per day (tpd) for 15 days. This is a very good sign that the operation can achieve its nameplate capacity. We also want to acknowledge the hard work and dedication of all our employees for the progress achieved to date during the ramp-up."
Detour Lake Mine - Ramp-up Update
During the second quarter, the mill processed a total of 2.87 million tonnes (Mt) of ore from a combination of direct feed and run-of-mine stockpiles (2.2 Mt) and pre-production stockpiles (0.67 Mt). The mill facility (both grinding lines) reported an average of 31,500 tonnes processed per calendar day (46,500 tonnes per operating day). Towards the end of June, the mill was regularly operating above 80% of nameplate capacity (55,000 tpd). There were 15 days in June where the mill processed more than 40,000 tpd, including five days at above 50,000 tonnes with a record day at 56,000 tonnes.
Mill availability improved during the quarter, from an average of 63% in April to 73% in June. This was still lower than expected as a result of unplanned shutdowns that affected daily mill throughput. The main challenges which slowed down progress during the second quarter have been largely fixed, for example the change of SAG mill grates and the malfunctioning valves in the SO2 cyanide detoxification system. The two pebble by-pass chutes were replaced during the quarter, resulting in significant improvements in pebble throughput. The feed chutes and shuttle conveyors for the secondary crushers were also modified and further adjustments are planned for the third quarter. The Company expects the number of unplanned shutdowns to reduce significantly in the third quarter as the processing plant continues to reach a steady state towards design capacity.
In the second quarter, the mill processed 2.87 Mt at an average grade of 0.76 g/t with recoveries of 83% for a gold output of 57,897 ounces. The progress made was good but below the Company's expectation of 3.58 Mt. Recovery did improve in the second quarter, slightly below the Company's target of 85%. The gravity circuit for the first production line became operational in June and the benefits are expected to be seen in the third quarter with slightly higher overall recoveries.