Detour’s Q1 Gold Production on Low End of Forecast

Detour Gold Corp. (TSX:DGC) announced its operational and financial results for Q1 2015, noting that its gold production came in at 105,572 ounces. Meanwhile, the company recorded a net loss of $63.1 million, or $0.38 per share, and an adjusted net loss of $23.5 million, or $0.14 per share.

Other highlights include:

• Mill throughput rates averaged 47,797 tpd, including record month in March at 58,661 tpd
• Phase 1 mining rates averaged 215,000 tpd, with March attaining budget rate of 223,000 tpd
• Total cash costs of $925 per ounce sold1 and all-in sustaining costs of $1,307 per ounce sold1
• Revenues of $127.4 million on gold sales of 104,497 ounces at an average realized price of $1,232 per ounce1
• Balance sheet deleveraged with debt repayments of $124.2 million (refer to March 6, 2015 news release)
• Drilling results confirm continuity of high-grade gold mineralization at Lower Detour

Specific operational highlights include:

• Gold production totaled 105,572 ounces, approximately 4% below the lower end of the guidance range for the first quarter of 2015.
• For the period, the mill facility processed 4.3 million tonnes (Mt) of ore or an average of 47,797 tonnes per day (tpd) at recoveries of 91%. Processed grade was 0.84 grams per tonne (g/t), in line with projections for the quarter.
• Mill operating time at 78% was below expectations for the quarter as a result of operational challenges in the first half of the quarter with conveyors and ore movement in the stockpile dome, which were intensified by the extreme cold weather. The 410 conveyor belt was replaced in early January and wet ore mined from the bottom of the pit caused freezing in the stockpile dome. With these issues largely resolved by mid-February, the processing plant has operated at design capacity of 55,000 tpd for the last 82 days.
• Blast hole drilling rates increased significantly in the first quarter resulting in a 88% increase in blasted inventory (up to 3.1 Mt by the end of March), which has resulted in higher shovel productivity, especially on the CAT7495 shovels by providing the opportunity for double-side loading.
• A total of 19.4 Mt was mined in Phase 1 (equivalent to mining rates of 215,000 tpd), approximately 3% lower than the annual budgeted rate of 222,000 tpd. The Detour Lake mine operated with a reduced shovel fleet during the quarter as a result of a series of mechanical failures, including the loss of a CAT7495 shovel in March for approximately two weeks to replace the boom and dipper arms. Phase 1 tonnage shortage from the first quarter has been recovered in April.

Paul Martin, president and CEO of Detour, commented:

While first quarter gold production was shy of the lower end of our first quarter forecast, we remain on track to meet our production and cost guidance for 2015. Following the challenges faced in the first half of the quarter, the operation has since stabilized and has gained significant momentum with the mill operating at design capacity for the last 82 days and mining rates exceeding budget at 250,000 tpd for the last 69 days. Our objective is to maintain and build upon this progress for the remainder of the year. On the exploration front, we have confirmed a high-grade gold mineralized system at Lower Detour and plan to spend an additional $5 millionto continue the drilling program this summer.

Click here to read the full Detour Gold Corp. (TSX:DGC) press release.