TORONTO, ONTARIO--(Marketwire - Jan. 31, 2011) - Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") is pleased to report an updated reserve and resource estimate for its 100% owned Detour Lake gold project in northeastern Ontario. This update uses the same assumptions and parameters as the mineral resources and reserves reported in the June 2010 feasibility study.

Highlights (base case using US$850/oz gold)

  • A 31% increase in proven and probable open pit reserves from 11.4 to 14.9 million ounces
  • A 16% increase in global measured and indicated mineral resources to 20.5 million ounces (inclusive of mineral reserves), and an additional 5.1 million ounces in the inferred category
  • Life of mine (LOM) increased to 21 years from 16 years at mill throughput ranging from 55,000 to 61,000tpd
  • Initiating economic studies to evaluate an increase in process plant throughput

"This significant reserve increase and the high potential of finding more ounces from additional drilling support our organic growth strategy. The positive impact of the 2010 drilling campaign extended the Detour Lake open pit further to the west. With 14.9 million ounces, the Detour Lake deposit remains Canada's largest pure gold play and ranks fourth among the top ten largest gold reserves in North America. The next step is to proceed with further economic studies to maximize the economics of the project, including a potential expansion of the processing plant if gold price exceeds US$1,000/oz at the start of operations," said Gerald Panneton, President and Chief Executive Officer.

"Detour Gold has started infrastructure construction activities at site and will be in a position to pour concrete for the processing plant by April 2011. During the construction period (2011-12), there will be up to 1,000 people working at site. The Detour Lake mine will make a significant contribution to the economy of northern Ontario, and with gold production expected to commence in early 2013, Detour Lake will be among the largest gold operations in North America."

Detour Lake Mineral Resources

The database for this update incorporated new drilling data from the 2010 drilling campaign (98,934 metres of 107,000 metres) and all the drilling data from the feasibility study for a total of 985,848 metres of drilling in 6,047 holes, of which 435,563 metres is from Detour Gold's drilling campaigns.

The Ordinary Kriging (OK) block model used for the global mineral resources covers the area between sections 17,000E and 20,600E, extending an additional 500 metres to the west from the feasibility study block model. The following improvements were made to the Detour Lake block model: (1) addition of one mineralized domain, (2) barren dykes modeled (forming three new domains), (3) vertical extension of block size dimension increased from 10 to 12 metres (i.e. 10 (E-W) x 5 (N-S) x 12 (vertical) metres, (4) search radius ellipse size reduced by 5 metres in the vertical direction (i.e. from 50x30x10 metres to 50x25x10 metres), and (5) maximum search radius reduced along strike for the inferred category from 200 to 150 metres (i.e. 150x150x60 metres). The table below summarizes the global mineral resources at various cut-off grades.

Detour Lake Global Mineral Resource Estimate(1)

Cut-off Grade
Grade Capped(2)
 (g/t Au)
Gold Ounces
Measured (M) 0.3 152.3 1.18 5,784
  0.4 137.4 1.27 5,617
  0.5 123.6 1.36 5,417
Indicated (I) 0.3 741.3 0.78 18,497
  0.4 588.0 0.89 16,786
  0.5 470.6 1.00 15,098
Total (M&I) 0.3 893.6 0.85 24,282
  0.4 725.4 0.96 22,403
  0.5 594.2 1.07 20,515
Inferred 0.3 375.7 0.62 7,444
  0.4 264.9 0.73 6,214
  0.5 190.3 0.84 5,144
(1) Mineral reserves are included within the mineral resources reported.
(2) Capping grade estimated by domains and varies from 15 g/t to 50 g/t. 

MineSight software was used to generate an optimum pit shell using the Lerchs-Grossman (LG) pit optimizer algorithm based on the measured and indicated resources only, using the same economic parameters established by the June 2010 feasibility study. The table below shows the in-pit mineral resources at various cut-off grades.

Detour Lake In-pit Mineral Resource Estimate(1)

Cut-off Grade
Grade Capped(2)
 (g/t Au)
Gold Ounces
Measured (M) 0.3 135.2 1.18 5,134
  0.4 123.1 1.26 4,997
  0.5 111.2 1.35 4,825
Indicated (I) 0.3 583.1 0.76 14,329
  0.4 462.0 0.87 12,977
  0.5 367.9 0.98 11,624
Total (M&I) 0.3 718.3 0.84 19,463
  0.4 585.1 0.96 17,973
  0.5 479.1 1.07 16,449
Inferred 0.3 36.7 0.56 658
  0.4 21.5 0.71 489
  0.5 14.2 0.84 386
(1) Mineral reserves are included within the mineral resources reported.
(2) Capping grade estimated by domains and varies from 15 g/t to 50 g/t.

Detour Lake Mineral Reserves

The open pit mineral reserves were estimated within a detailed engineered pit design by using the measured and indicated resources at a cut-off grade of 0.5 g/t. In the pit design, inter-ramp pit slopes vary from 49 to 56 degrees depending on rock type and structure orientation. The block model was prepared in MineSight with the kriged block grades that include an estimated dilution of 11.7%. The estimated proven and probable reserves total 14.9 million ounces, after using a 95% mining recovery rate and an additional mining dilution of 3.8%. The stripping ratio (waste to ore) has increased to 3.9 from 3.3 as a result of a greater quantity of waste (including inferred resources) contained within the new pit design due to insufficient drilling at the west end of the pit. In all drilling programs to date, the Company has had a very high success rate in converting inferred resources to the measured and indicated categories (and reducing strip ratio). It is anticipated that the 2011 drilling program will be as successful in proving the continuity of the gold mineralization, resulting in a conversion to mineral reserves and a lower strip ratio.

A summary table of the changes from the feasibility study is shown below.

Summary of Changes in Mineral Reserves from June 2010 (FS) to January 2011

  Feasibility Study New Update % Change
    Total P&P gold reserves (M oz) 11.4 14.9 +31%
    Tonnage (Mt) 347.5 451.4 +30%
    Grade (g/t) 1.02 1.03 +1%
    Strip ratio 3.3 3.9 +18%
    Mine life 16 21 +31%
    Estimated gold recovery (%) 91.2 91.0 -
    Gold price (US$/oz) 850 850 -
    Exchange rate 1.10 1.10 -

Detour Lake Mineral Reserves at $850/oz (cut-off grade of 0.5 g/t)

 (g/t Au)
Gold Ounces
Proven 93,715 1.29 3,886
Probable 355,838 0.96 10,974
Total (P&P) 449,553 1.03 14,860

The Company's strategy remains, as per the feasibility study, to develop the mining schedule using an elevated cut-off grade through the early years for a higher head grade to be processed at the plant facility.

Capital Costs Status

Pre-production capital costs remain in line with the feasibility study. The Company has entered into commitments for approximately C$540 million for the project and has spent approximately C$80 million as of December 31, 2010. The current cash position of the Company is approximately C$970 million, which is sufficient to advance the development of the project through mid-2012. Construction progress remains on schedule and on budget at this time.

Economic Studies to Start

With a solid reserve base of nearly 15 million ounces, Detour Gold is moving ahead with initiating further economic studies to assess the potential for increasing the annual production profile once the project has reached production in early 2013. The main opportunities to be potentially realized are:

  • An increase in mill capacity (processing plant expansion) – initiating a tonnage rationalization study to evaluate throughput options between 75,000 and 100,000 tpd (note that the purchased gyratory crusher is already designed for higher capacity);
  • At US$1,000/oz or above and once the plant expansion is completed, the Company could mine economically at a lower gold cut-off grade and generate higher mineral reserves;
  • Engineering work optimization (i.e. pit slope improvements, potential in-pit dumping of additional waste and tailings);
  • Additional drilling to convert inferred resources into measured and indicated resources in the current pit to reduce strip ratio; and
  • Continue drilling campaign to test the western extension of the deposit (i.e. 50,000 metres planned in 2011).

For a potential expansion to proceed, the Company may be required to obtain additional authorizations or permits beyond those currently received or being sought to accommodate for a larger open pit operation.

Qualified Persons

The mineral resources for Detour Lake have been estimated by Michel Dagbert, Eng., Senior Geostatistician and André Laferrière, P. Geo., Senior Geologist of SGS Canada Inc. The mineral reserves for Detour Lake have been estimated by Patrice Live, Eng., Mining Manager of BBA Inc. All are independent Qualified Person (QP) under National Instrument 43-101 and have reviewed and approved the content of this news release.

A NI 43-101 compliant Technical Report will be filed on the Company's website and on SEDAR within 45 days.

Conference Call

Detour Gold will hold a conference call on Tuesday, February 1, 2011 at 10:00 AM EST where senior management will discuss the mineral resource and reserve update and respond to questions from analysts and investors. To join the call:

  • In Canada and the United States dial toll free 1-877-240-9772
  • International 416-340-2216
  • To listen to the audio webcast live online, go to: (home page) and click on "Conference Call Audio Webcast February 1, 2011" under "Events" or go directly to

The conference call will be recorded and playback of the call will be available after the event by dialing toll free in Canada and the United States 1-800-408-3053, or internationally 416-695-5800, pass code 6848711 (available up to March 1, 2011). To listen to the recorded webcast online, please go to, in the "Investor Info" section under "Past Events".

Forward-Looking Information

This press release contains certain forward-looking information as defined in applicable securities laws (referred to herein as "forward-looking statements"). Specifically, this press release contains forward-looking statements regarding results and projections based on the assumptions and parameters contained in the June 2010 feasibility study of the Detour Lake gold project, including the reserve and resource estimates, ore grade, the expected mine life, anticipated gold production, gold recovery, the commencement of construction, cash operating costs and other costs, the projected internal rate of return, capital costs, sensitivity to metal prices and other sensitivities, the projected payback period, the availability of capital for development, the financial analysis and expected drilling activities. Forward-looking statements involve known and unknown risks, uncertainties and other factors which are beyond Detour Gold's ability to predict or control and may cause Detour Gold's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, 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, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the gold exploration and development industry, as well as those risk factors discussed in the section entitled "Description of Business - Risk Factors" in Detour Gold's 2009 annual information form. Such forward-looking statements are also 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; the estimated timeline for the development of the Detour Lake gold project; the supply and demand for, and the level and volatility of the price of, gold; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; the receipt of necessary permits; market competition; ongoing relations with employees and impacted communities; and general business and economic conditions. In addition, the June 2010 feasibility study uses an estimate of gold price based on an approximate three-year average. The operating and capital costs in the feasibility study were developed to be reasonable estimates within industry benchmarks. There is no certainty that the results of the feasibility study will ever be realized. Should one or more of the risks or uncertainties involved in forward-looking statements relating to the feasibility study materialize, or should the assumptions underlying the feasibility study prove incorrect, actual results of the feasibility study may vary materially from those anticipated, believed, estimated or expected. Accordingly, readers should not place undue reliance on forward-looking statements. Detour Gold undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be required by law.

Information Concerning Estimates of Mineral Reserves and Resources

The mineral reserve and resource estimates reported in this press release were prepared in accordance with Canadian National Instrument 43-101Standards of Disclosure for Mineral Projects ("NI 43-101"), as required by Canadian securities regulatory authorities. For United States reporting purposes, the United States Securities and Exchange Commission ("SEC") applies different standards in order to classify mineralization as a reserve. In particular, while the terms "measured," "indicated" and "inferred" mineral resources are required pursuant to NI 43-101, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories constitute or will ever be converted into reserves. In addition, "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 be upgraded to a higher category. Under Canadian securities laws, issuers must not make any disclosure of results of an economic analysis that includes inferred mineral resources, except in rare cases.

Contact Information: Detour Gold Corporation
Gerald Panneton
President and CEO
(416) 304.0800
Detour Gold Corporation
Laurie Gaborit
Director Investor Relations
(416) 304.0581
Detour Gold Corporation
Royal Bank Plaza
South Tower, 200 Bay Street,
Suite 2200, Toronto, Ontario M5J 2J1