TORONTO, ONTARIO--(Marketwired - March 22, 2017) - Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") reports its financial results for the fourth quarter and full-year 2016. The Company previously released its fourth quarter and full-year 2016 operational results on January 30, 2017. All amounts are in U.S. dollars unless otherwise indicated.

This press release should be read in conjunction with Detour Gold's audited consolidated Financial Statements and related notes and schedules for the year ended December 31, 2016, and related Management's Discussion and Analysis ("MD&A"), which are available from the Company's website (www.detourgold.com) under the Investor Centre section and on SEDAR (www.sedar.com).

2016 Highlights
•Gold production of 537,765 ounces, in line with revised guidance of 525,000 to 545,000 ounces
•Revenues of $658.3 million on sales of 527,727 ounces of gold at an averaged realized gold price1 of $1,221 per ounce
•Earnings from mine operations of $94.9 million
•All-in sustaining costs1 of $1,007 per ounce sold, within the revised guidance of $970 to $1,020 per ounce sold
•Net loss of $6.9 million ($0.04 per share) and adjusted net earnings1 of $10.4 million ($0.06 per share)
•Year-end cash and short-term investments balance of $129.4 million
•Positive drilling results from Zone 58N

Q4 2016 Highlights
•Quarterly gold production of 143,512 ounces
•Revenues of $176.6 million
•Earnings from mine operations of $4.8 million
•All-in sustaining costs1 of $1,132 per ounce sold, including total cash costs1 of $855 per ounce sold
•Net loss of $13.5 million ($0.08 per share) and adjusted net loss1 of $6.0 million ($0.03 per share)

Subsequent Events
•Permitting for West Detour development delayed and awaiting decision if project will be subject to a federal environmental assessment process versus provincial (refer to news release dated January 30, 2017)
•Releasing a revised life of mine plan for the Detour Lake operation on March 22, 2017
•Year-end 2016 proven and probable reserves of 16.5 million ounces (refer to March 22, 2017 news release entitled "Detour Gold Provides Updated Life of Mine Plan for Detour Lake".

1 Refer to section Non-IFRS Financial Performance Measures at the end of this news release.

Selected Financial Information

2016 2015 2016 2015
(in $ millions unless specified) Q4 Q4 Annual Annual
Gold ounces produced 143,512 146,417 537,765 505,558
Gold ounces sold 144,668 132,209 527,727 486,243

Average realized price1 ($/oz) 1,210 1,102 1,221 1,175
Total cash costs1 ($/oz sold) 855 694 746 775
AISC1 ($/oz sold) 1,132 858 1,007 1,056

Unit costs
Mining (C$/t mined) 3.25 2.63 2.89 2.70
Milling (C$/t milled) 8.74 9.24 9.78 9.52
G&A (C$/t milled) 3.46 3.15 3.36 3.21

Metal sales 176.6 145.7 658.3 563.0
Production costs 123.9 92.5 398.1 388.4
Depreciation and depletion 47.8 44.1 165.3 161.9
Cost of sales 171.7 136.6 563.4 550.3
Earnings from mine operations 4.8 9.1 94.9 12.7

Net loss (13.5) (40.8) (6.9) (163.6)
Net loss per share (0.08) (0.24) (0.04) (0.97)
Adjusted net earnings (loss)1 (6.0) (4.4) 10.4 (42.1)
Adjusted net earnings (loss) per share1 (0.03) (0.03) 0.06 (0.25)
Note: Totals may not add up due to rounding.

Q4 2016 Financial Performance
•Fourth quarter revenues for 2016 were $176.6 million compared to $145.7 million in the prior year period. The Company's gold sales increased to 144,668 ounces in the fourth quarter of
2016 compared to 132,209 ounces in the prior year period, mainly due to the timing of gold pours and shipments. The average realized gold price1 increased by $108 per ounce, from $1,102 per ounce to $1,210 per ounce.
•Cost of sales totaled $171.7 million in the fourth quarter of 2016, a 26% increase from $136.6 million in the prior year period, primarily driven by higher volume of gold sales, higher costs for mine maintenance, and costs associated to the 'fines' project. Total cash costs for the fourth quarter of 2016 were $855 per ounce sold compared to $694 per ounce sold in the prior year period.
•Earnings from mine operations for the fourth quarter of 2016 decreased to $4.8 million compared to $9.1 million in the prior year period. The decrease is mainly attributable to higher production costs.
•Net loss for the fourth quarter of 2016 totaled $13.5 million ($0.08 per share) compared to
$40.8 million ($0.24 per share) in the prior year period. The improvement reflects higher gold sales and lower income and mining tax expense. The adjusted net loss1 for the fourth quarter of 2016 totaled $6.0 million ($0.03 per share) compared to $4.4 million ($0.03 per share) in the prior year period.

Full Year 2016 Financial Performance
•Revenues for the full year 2016 were $658.3 million, 17% higher than in the previous year as
a result of higher volume of gold ounces sold and a 4% increase in the average realized gold price1 received. The Company's gold sales totaled 527,727 ounces at an average realized price of $1,221 per ounce compared to 486,243 ounces at an average realized price1 of $1,175 per ounce for 2015.
•Cost of sales for 2016 totaled $563.4 million compared to $550.3 million in 2015. 2015 production costs include an unfavorable adjustment of $7.7 million relating to the Company's electricity usage in prior periods. Total cash costs decreased to $746 per ounce sold in 2016 from $775 per ounce sold in 2015, driven by higher volumes of ounces sold and a more favorable average foreign exchange rate.
•Earnings from mine operations for 2016 increased to $94.9 million from $12.7 million in 2015, mainly due to higher revenues.
•Net loss for 2016 totaled $6.9 million ($0.04 per share) compared to a net loss of $163.6
million ($0.97 per share) in 2015. The improvement reflects higher gold sales and an income and mining tax recovery. The adjusted net earnings1 for 2016 totaled $10.4 million ($0.06 per share) compared to adjusted net loss1 of $42.1 million ($0.25 per share) in 2015.
•For 2016, sustaining capital expenditures were $104.6 million, including cash deferred stripping costs of $2.7 million.

Liquidity and Capital Resources
•During 2016, the Company re-purchased $142 million of convertible notes, reducing the amount due at maturity on November 30, 2017 to $358 million. The Company is evaluating refinancing opportunities for the convertible notes and its bank credit facility which expires on August 31, 2017.
•At December 31, 2016, the Company held cash and cash equivalents and short-term investments of $129.4 million compared to $160.6 million at December 31, 2015. The Company also has an undrawn revolving credit facility of C$85 million.

Financial Risk Management
•During 2016, the Company entered into a number of gold, foreign exchange and diesel derivative contracts. The total realized loss on these derivative instruments for 2016 was $14.5 million.
•As at December 31, 2016, the Company had $161 million of zero-cost collars to hedge its Canadian dollar costs whereby it can sell US dollars at a rate no lower than 1.30 and can participate up to a rate of 1.40. For 2017, approximately 75% of operating costs and 65% of capital costs are expected to be denominated in Canadian dollars.
•Subsequent to year-end, the Company entered into 90,000 ounces of zero-cost collars to protect its gold sales from April to December 2017. The collars have a range of $1,200 to $1,330 per ounce.

Financial Position

The Company plans to arrange up to $450 million in financing in 2017 to ensure its future liquidity needs are well managed. The $450 million is premised upon re-financing $300 million of convertible notes that mature in November 2017 and replacing its senior secured credit facility of C$135 million that matures in August 2017.

The bank market is the Company's preferred financing alternative as it provides the flexibility to re-pay indebtedness based on the Company's liquidity. The Company is in discussions with its current bank syndicate, comprised of five banks, to assess the potential of obtaining a senior secured debt facility to ensure its future liquidity is addressed.

The senior secured debt facility is expected to comprise three components: a drawn facility of up to $300 million to re-finance the estimated outstanding amount of the convertible notes at their maturity on November 30, 2017; a drawn facility for letters of credit that guarantee the Company's closure bonding and other obligations of up to $50 million; and an undrawn facility in the amount of up to $100 million.

The banking syndicate is currently reviewing the Company's updated life of mine plan to assess the available capacity. The Company expects to receive commitments from the members of the banking syndicate by the end of April 2017 and to conclude negotiations in the second quarter of 2017.

The Company is also evaluating additional sources of potential funding in the event a senior secured credit facility alone does not provide sufficient liquidity or if the Company determines its liquidity needs are best met by including other sources of financing. To this end, the Company is in discussions with its mobile fleet equipment vendor to assess the availability of obtaining a secured debt facility of up to $100 million to finance new purchases of equipment. The Company is also evaluating the convertible debt and equity markets as additional sources of financing.

Annual General and Special Meeting of Shareholders

Detour Gold's Annual General and Special Meeting of Shareholders will be held on May 4, 2017 at 2:00 PM in the St. Andrew's Hall (27th Floor) of the St. Andrew's Club & Conference Centre at 150 King Street West in Toronto.

Technical Information

The scientific and technical content of this news release was reviewed, verified and approved by Drew Anwyll, P.Eng., Senior Vice President Technical Services, a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects."

AND

Detour Gold Provides Updated Life of Mine Plan for Detour Lake



03/22/2017





TORONTO, ONTARIO--(Marketwired - March 22, 2017) - Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") is pleased to announce an updated life of mine plan for its Detour Lake operation located in northeastern Ontario.

All dollar amounts are in Canadian dollars unless otherwise stated. US$ refers to United States dollars. Totals may not add due to rounding.

Updated Life of Mine Plan

A National Instrument 43-101 technical report (the "Technical Report") for the updated life of mine ("LOM") plan will be filed today on SEDAR (www.sedar.com) and posted on the Company's website (www.detourgold.com).

Highlights
•Proven and probable open pit reserves of 16.5 million ounces contained gold
•Average annual gold production of approximately 656,000 ounces over LOM
•Mine life increased to approximately 23 years
•LOM total site costs1 of US$758 per ounce sold
•After-tax NPV5% of $3.7 billion, using long-term gold price of $1,562/oz (US$1,250 at a 1.25 exchange rate)

Paul Martin, President and CEO, commented: "The updated LOM plan responds to our near-term permitting constraints and provides achievable targets by drawing on our experience to date while offering significant upside potential to improve operational experience. The Detour Lake mine operation remains a unique asset within the mid-tier producers with its long life, relatively low costs and robust economics."

Updated Life of Mine Plan

As disclosed in the Company's news release dated January 30, 2017 ("Updated West Detour Development Plans"), the Company modified its LOM plan for the Detour Lake operation as a result of permitting uncertainties associated with the West Detour project. The updated LOM plan includes the following key elements and results:
•Accommodates for the timing of a federal review process for permitting (if required)
•Annual mining rate increase to 125 Mt with additional mine equipment
•Annual plant throughput maintained at 23 Mt starting in 2021
•Near-term increase in strip ratio with 2019-20 average annual gold production below 550,000 ounces then increasing significantly above 700,000 ounces in 2021-22
•Total site costs increased to US$758 per ounce sold, an 8% increase from the prior LOM plan

1 Total site costs include production and operating costs such as mining, processing, site general and administration, bullion shipment, refining, agreements with Aboriginal communities, capital costs (including closure costs) and net of silver sales.

Key Inputs from LOM Plan


2017 LOM Plan
(03/2017) 2016 LOM Plan
(01/2016) 1
Economic Assumptions (long-term)
Gold price (US$/oz) 2 $1,250 $1,200
Exchange rate (US$/Cdn$) 3 1.25 1.23
Electricity ($/kWh) 4 $0.035/$0.08 $0.04/$0.08
Diesel fuel ($/L) 5 $0.80 $0.80
Income/mining tax rate (%) 25/10 25/10
Net smelter royalty (%) 2.0 2.0
Mine Parameters
Total mined (Mt) 6 2,175 2,117
Ore mined (Mt) 502 467
Strip ratio (waste:ore) 3.3 3.5
Ore milled (Mt) 7 530 494
Average gold grade (g/t) 0.97 0.99
Estimated gold recovery (%) 92.7 92.0
Total recovered gold (M oz) 15.3 14.5
Mine life (years) 23.25 21.6
Average annual gold production (oz) 656,000 671,000
Costs
Total site costs (US$/oz sold) 8 758 701

(1) Adjusted to commence in 2017.
(2) 2017 LOM plan: gold price of US$1,200/oz for 2017 and US$1,250/oz for 2018+; 2016 LOM plan: gold price of US$1,150/oz for 2017, US$1,200/oz for 2018+.
(3) 2017 LOM plan: US$/C$exchange rate of 1.30 for 2017, 1.27 for 2018 and 1.25 for 2019+; 2016 LOM plan: US$/C$exchange rate of 1.25 for 2017 and 1.23 for 2018+.
(4) 2017 LOM plan: electricity costs at $0.035/kWh for 2017-24 and $0.08/kWh for 2025+; 2016 LOM: electricity costs at $0.04/kWh for 2017-24 and $0.08/kWh for 2025+.
(5) 2017 LOM plan: diesel costs at $0.70/L for 2017 and $0.80/L for 2018+; For 2016 LOM: diesel costs at $0.75/L 2017 and $0.80/L for 2018+.
(6) Excludes re-handle of ore from ROM stockpiles and LG Fines from the mineralized waste stockpiles.
(7) Includes 20.9 Mt of LG Fines processed over LOM for 2017 LOM plan and 20.0 Mt for 2016 LOM plan.
(8) Refer to the section on Non-IFRS Financial Performance Measures at end of the news release. Ounces sold = production X 97.95% (100% - 2% NSR - 0.05% refiners take).

Operating Plan

The mine production plan assumes the continued development of the Detour Lake pit with the start-up of the North pit in 2019 and the West Detour pit in 2025. The processing of low grade fines ("LG Fines") represents an additional source of ore and contributes to achieving a plant throughput capacity of 23 Mt.

The mining rate for the Detour Lake pit gradually ramps up from 100 Mt in 2017 to 125 Mt in 2022. During this period, the strip ratio will vary annually from 3.6:1 to 6.6:1 (excluding North pit). The ultra-class haulage truck fleet is projected to increase from the 32 CAT 795 trucks in 2017 to 38 in 2022 (plus allowance for 2 additional trucks if required) with the addition of two shovels (beyond the current two electric rope shovels and four hydraulic shovels). The fourth hydraulic shovel was fully assembled in March 2017 and is now operational.

The development of the West Detour pit is now scheduled to commence in 2025, ramping up to a maximum mining rate of 35 Mt per year. It assumes initial contractor pre-stripping followed by a combination of small equipment and shared usage of the Detour Lake pit fleet. The Company plans to use the West Detour pit, once depleted, for tailings and/or waste rock deposition.

The development of the North pit is scheduled to start in 2019 using a contractor (at a maximum rate of 7 Mt per year due to the small size of the pit), which provides flexibility for either an earlier start-up under a provincial process or a delayed start-up under a federal process. In the second scenario, the plant feed would be supplemented by LG Fines and/or lower grade material until the permit is received. Once depleted, the pit is planned to be used as a mine water pond during the operations.

The Company will continue to stockpile material grading between 0.40 to 0.50 g/t Au (referred to as mineralized waste or low grade material, which is estimated at 98 Mt averaging 0.45 g/t Au over the LOM) in order to process the LG Fines. In the LOM plan, the processing of LG Fines commences in 2019 at a rate of 0.5 Mt, increasing to 2.3 Mt in 2020 and consistently at 1 Mt per year in 2021+.

The LOM mine plan assumes a gradual ramp-up of the processing plant capacity, from 21.5 Mt in 2017 to 23 Mt in 2021+ (22 Mt or 60,000 tpd from run-of-mine and 1 Mt or 3,000 tpd from the LG Fines).

Compared to the prior LOM plan, the main impact on the production plan is an increase in the strip ratio over the next five years (representing an increase of 40 Mt of waste) as a result of the delayed start-up of the West Detour pit. Over 2019-2020 period, the ore from the Detour Lake pit is supplemented with LG Fines (mentioned above), resulting in an overall 9% decline in gold production compared to the prior LOM plan.

read more on
http://www.detourgold.com/investors-centre/News-Releases/news-Release-Details/2017/Detour-Gold-Provides-Updated-Life-of-Mine-Plan-for-Detour-Lake/default.aspx

d.d. 24 maart 2017 Detour C$ 15,66 +69ct.