Detour Gold Reports Third Quarter 2014 Results

Press Release

TORONTO, ONTARIO–(Nov. 3, 2014) – Detour Gold Corporation (TSX:DGC) (“Detour Gold” or the “Company”) reports its operational and financial results for the third quarter of 2014. This release should be read in conjunction with the Company’s third quarter 2014 financial statements and MD&A report on the Company’s website or on SEDAR. All amounts are in U.S. dollars unless otherwise indicated.

Q3 2014 Highlights

• Gold production of 115,344 ounces
• Mill throughput rates averaged above design capacity of 55,000 tonnes per day for 44 consecutive days from August 18 to September 30
• Revenues of $135.9 million on gold sales of 106,334 ounces
• Total cash costs of $941 per gold ounce sold¹
• Net loss of $0.8 million or $nil per share; Adjusted net loss of $16.5 million or $0.10 per share¹
• Cash and short-term investments balance of $138.8 million at September 30

“Overall, our third quarter operational results were in line with our forecast with gold production standing at 339,864 ounces for the first nine months of the year. Based on the current ramp-up progress, we remain on track to be within our production and total cash costs guidance for 2014,” said Paul Martin , President and CEO. “We are extremely satisfied with the recent performance of the plant and remain confident in further improving mill availability during the fourth quarter. Our focus is now on the mine operations to further increase mining rates.”

¹ Refer to the section on Non-IFRS Financial Performance Measures at end of the press release. Reconciliation of these measures is described at end of the press release and in the MD&A for the third quarter ended September 30, 2014.

Summary Operational Results

Gold production for the third quarter of 2014 was in line with plan totaling 115,344 ounces.

For the period, the mill facility processed 4.5 million tonnes (Mt) of ore or an average of 49,186 tonnes per day (tpd) at recoveries of 90%. Processed grade was 0.88 grams per tonne (g/t), consistent with projections for the quarter. Mill availability at 81% was at the low end of expectations for the quarter, mainly impacted by five days of unplanned downtime in early July to replace the pulp lifters in both SAG mills due to premature wear. Following further scheduled improvements made to the 410 conveyor (primary crusher feeding the stockpile dome) in August, both operational downtime and milling rates have shown significant progress. From August 18 to September 30, throughput rates averaged 55,443 tpd with 90% availability.

The final major planned plant shutdown for the year took place in October during which further adjustments were completed to the primary crusher unit, along with the liner changes for the SAG and ball mills. The Company conducted a full inspection of the pre-leach thickener and also commissioned and tested a new pre-leach thickener by-pass system which would allow the plant to operate at 90% capacity in the event of maintenance on the pre-leach thickener.

During the third quarter, a total of 18.9 Mt was mined (equivalent to mining rates of 206,000 tpd), approximately 14% lower than targeted levels. At quarter-end, the total ore stockpiles stood at 0.9 Mt grading 0.73 g/t.

Following the significant overburden and till removal program that ended in July, mining rates did not improve as expected, primarily due to low drilling productivity and delays in explosive loading, which impacted shovel productivity and utilization. To a lesser extent, shovel availability also contributed to lower mining rates (availability of 81% versus 85% target). The Company is working towards a step-up phase to gradually improve mining rates, which includes improving quality assurance and controls for drilling and blasting procedures.

Mining activities are now focusing on further opening up the pit by de-stacking the benches to the south and east following the completion of the southwall pushback and the Campbell breakthrough. This will progressively result in larger mine faces and thereby improve shovel allocation and productivity to achieve economies of scale.

The majority of the tailings construction activities planned for 2014 were completed in the third quarter.

 

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