ONTARIO — Toronto-based Detour Gold Corp. has received a positive pre-feasibility study for its Detour Lake gold project in the northeast part of the province. The study, prepared by Met-Chem Canada, is based on proven and probable open pit reserves containing 8.81 million oz of gold, or 238.6 million tonnes averaging 1.15 g/t Au. Average annual gold production would be approximately 560,000 oz at an average life-of-mine cash operating cost of US$404/oz.
The study was prepared using a base case US$775/oz gold price. The project would have a pre-tax net present value (NPV) of $521 million at a 5% discount rate and generate an internal rate of return (IRR) of 13.5%. Pre-production capital costs would be about US$844 million.
A conventional open pit operation is planned using 300-t trucks, 24.5 to 34.2 m³ electric shovels, blasthole drills and various service equipment.
The mill flowsheet will include a conventional gravity, cyanidation and carbon-in-pulp (CIP) circuits. Dual SAG/ball milling lines are planned. Metallurgical tests point toward a 91.5% gold recovery from a 1.15 g/t Au head grade and a 28-hour leach retention time. Tails will initially be deposited in the existing tailings area, established at the time the mill was built in 1983.
Details of the pre-feasibility study for the Detour Lake gold project are contained in the news release of Sept. 9, 2009, posted at www.DetourGold.com.