TORONTO, Oct. 25, 2017 (GLOBE NEWSWIRE) -- Detour Gold Corporation (TSX:DGC) (“Detour Gold” or the “Company”) reports its operational and financial results for the third quarter of 2017. This release should be read in conjunction with the Company’s third quarter 2017 Financial Statements and MD&A on the Company’s website or on SEDAR. All amounts are in U.S. dollars unless otherwise indicated.

In this news release, the Company uses the following non-IFRS measures: total cash costs, all-in sustaining costs (“AISC”), realized gold price, average realized margin, adjusted earnings (loss), and adjusted earnings (loss) per basic share. Refer to the Company’s MD&A and at the end of this news release for an explanation and discussion of these non-IFRS measures.

Highlights
_______________________________________________________________________________________________________________________________
•Gold production of 139,861 ounces for the quarter and 421,417 ounces year to date
•Record mill throughput of 61,548 tpd and mining rate of 283,000 tpd
•Total cash costs of $668 per ounce sold and AISC of $1,032 per ounce sold
•Revenues of $164.0 million on gold sales of 128,498 ounces at an average realized price of $1,273 per ounce
•Earnings from mine operations of $46.7 million
•Net earnings of $41.1 million ($0.24 per basic share) and adjusted earnings of $37.4 million ($0.21 per basic share)
•Cash and cash equivalents of $113.7 million at September 30, 2017
•Closed $500 million bank debt facility; drew down $300 million from the facility and placed $329.3 million in escrow to repurchase convertible notes maturing in November 2017
•Signed amended Impact Benefit Agreement with Taykwa Tagamou Nation to include West Detour project


“Detour Lake operation continued to improve with record mining and milling rates, although gold production was at the lower end of our projections for the quarter. We expect a strong fourth quarter gold production to meet the mid-range of our annual guidance,” said Paul Martin, President and CEO. “With a strong balance sheet and having generated approximately $60 million of free cash flow before financing activities in the first nine months of the year, the Company now has the flexibility of further reducing debt in the fourth quarter.”

Q3 2017 Summary Operational Results
_______________________________________________________________________________________________________________________________
•Gold production totaled 139,861 ounces for the third quarter, mainly reflecting a lower than projected head grade.

•Mill throughput averaged a record 5.7 million tonnes (Mt) during the third quarter. Head grade was 0.86 grams per tonne (g/t), mainly impacted by unfavorable grade reconciliation in the central portion of the orebody and higher mining dilution. Mill recoveries averaged 90%.

•A total of 26.1 Mt (ore and waste) was mined in the third quarter (equivalent to mining rates of 283,000 tpd). Both Phase 1 (including the Campbell pit area) and Phase 2 mining are on track with the mine plan to achieve a total of 100 Mt this year.

Detour Lake Mine Statistics


YTD 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016
Ore mined (Mt) 15.1 5.4 4.9 4.8 5.8 5.0
Waste mined (Mt) 58.0 20.6 20.4 17.0 15.0 18.5
Total mined (Mt) 73.1 26.1 25.2 21.8 20.9 23.5
Strip ratio (waste:ore) 3.9 3.8 4.2 3.6 2.6 3.7
Mining rate (k tpd) 268 283 277 242 227 256

Ore milled (Mt) 16.4 5.7 5.5 5.2 5.5 5.2
Head grade (g/t Au) 0.90 0.86 0.95 0.88 0.90 0.88
Recovery (%) 89 90 90 89 90 87
Mill throughput (tpd) 59,992 61,548 60,259 58,114 60,052 56,453
Mill operating time (%) 87 88 87 85 86 84
Ounces produced (oz) 421,417 139,861 150,138 131,418 143,512 127,758
Ounces sold (oz) 405,681 128,498 142,970 134,213 144,668 113,845

Average realized price ($/oz) $1,248 $1,273 $1,257 $1,216 $1,210 $1,281
Total cash costs ($/oz sold) $721 $668 $706 $788 $855 $802
AISC ($/oz sold) $1,092 $1,032 $1,123 $1,118 $1,132 $1,042

Mining (Cdn$/t mined) $2.86 $2.84 $2.83 $2.92 $3.25 $2.66
Milling (Cdn$/t milled) $9.37 $8.29 $9.63 $10.26 $8.74 $11.74
G&A (Cdn$/t milled) $3.36 $3.26 $3.35 $3.46 $3.46 $3.46

Note: Totals may not add up due to rounding. G&A includes costs related to agreements with Aboriginal communities.

•Total cash costs of $668 per ounce sold in the third quarter. The decrease from the prior quarter reflects lower milling costs, partially offset by a less favorable exchange rate.

•AISC improved to $1,032 per ounce sold in the third quarter and reflected sustaining capital expenditures of $39.3 million and deferred stripping costs of $6.3 million.

•Sustaining expenditures included $14.8 million for mining (mainly relating to the purchase of one haul truck and significant components to the mobile fleet), $14.4 million for the construction of the tailings facility, $2.2 million for processing, and $7.9 million for site infrastructure (mainly for the new camp).

Q3 2017 Financial Review
_______________________________________________________________________________________________________________________________
•Revenues for the third quarter were $164.0 million. The Company sold 128,498 ounces of gold at an average realized price of $1,273 per ounce.

•Gold sales lagged gold production during the third quarter due to the timing of gold pours and shipments. The gold in-circuit inventory rose significantly at the end of the quarter as a result of operational difficulties in stripping the gold. The circuit is expected to return to normal levels in the fourth quarter at approximately 25,000 ounces of gold.

•Cost of sales for the third quarter totaled $117.3 million, including $30.5 million of depreciation (or $237 per ounce sold).

•Earnings from mine operations for the third quarter totaled $46.7 million.

•Net earnings for the third quarter were $41.1 million ($0.24 per basic share). Adjusted earnings in the third quarter amounted to $37.4 million ($0.21 per basic share) as a result of record earnings from operations.

Liquidity and Capital Resources
_______________________________________________________________________________________________________________________________
•Cash and cash equivalents totaled $113.7 million at September 30, 2017.

•Funds of $329.3 million ($300 million drawn from credit facility plus $29.3 million from cash balance) were placed on deposit with the convertible note trustee in July. The holders of the convertible notes will be paid at the maturity date of November 30, 2017.

•Company’s liquidity strengthened in the third quarter with cash and undrawn credit facility amounting to $280 million.

Summary Financial Data
(in $ millions unless specified) YTD 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016
Metal sales 507.8 164.0 180.1 163.7 176.6 152.0
Production costs 295.1 86.8 101.8 106.4 123.9 91.3
Depreciation 101.2 30.5 35.6 35.1 47.8 35.5
Cost of sales 396.3 117.3 137.5 141.5 171.7 126.8
Earnings from mine operations 111.5 46.7 42.6 22.2 4.8 25.2

Net income (loss) 71.5 41.1 24.4 6.0 (13.5) 9.7
Net income (loss) per basic share 0.41 0.24 0.14 0.03 (0.08) 0.06
Adjusted earnings (loss) 74.4 37.4 26.4 10.5 (6.0) 1.3
Adjusted earnings (loss) per basic share 0.43 0.21 0.15 0.06 (0.03) 0.01

Note: Totals may not add up due to rounding.

Financial Risk Management
_______________________________________________________________________________________________________________________________
•As at September 30, 2017, the Company had $52.0 million of zero-cost collars to hedge its Canadian dollar costs whereby it can sell U.S. dollars at an average rate of 1.30 and can participate up to an average rate of 1.40.

•As at September 30, 2017, the Company had 45,000 ounces of zero-cost collars to protect its gold sales from October to December 2017. The collars have an average range of $1,208 to $1,342 per ounce.

•As at September 30, 2017, the Company had a total of 6.8 million litres of outstanding diesel contracts at an average rate of $0.41 per litre, which will settle on a net basis.

Exploration Update
_______________________________________________________________________________________________________________________________

•The Company has completed the summer drilling program with 10,789 metres in 27 holes at Zone 58N targeting mainly the eastern end of the deposit between vertical depths of 250 and 450 metres at an approximate spacing of 35 metres.

•Approximately 4,000 metres of additional drilling at a closer spacing is underway to better define the tonnage and grade estimation of Zone 58N due to the high nuggety and coarse nature of the gold. Evaluation of these results will assist in the completion of the block model and subsequent mineral resource estimate.

•A 6,000 metre drilling program east of the current tailings facility (TMA area) has been re-scheduled to 2018, targeting IP anomalies and following up on the 2016 drilling results.

•An airborne geophysical survey totaling 5,570 line kilometres was completed over the entire Burntbush grassroot property located 70 kilometres south of the Detour Lake mine. Preliminary review of the results has identified 16 significant untested geophysical anomalies. A prospecting and sampling program was completed to follow up on the airborne EM (electromagnetic) anomalies, historical mineral occurrences and areas of exposed bedrock.

2017 Outlook
_______________________________________________________________________________________________________________________________
• Detour Gold is expected to attain the mid-range of its annual guidance for production, total cash costs, and AISC.

Gold production (oz) 550,000-600,000
Total cash costs ($/oz sold) $690-$750
All-in sustaining costs ($/oz sold) $1,025-$1,125


•Mine plan is on target for approximately 100 Mt to be mined from the Detour Lake pit in 2017 with the current available fleet of six shovels and 32 haul trucks supported by the addition of a ROM fleet.

•The Company has secured delivery of additional mining equipment as it continues to position itself for higher tonnages in 2018 and beyond. The Company has ordered its seventh shovel (CAT6060) and two additional haul trucks (#33 and #34 CAT795), which are scheduled to arrive at site at year-end.

•Projected capital expenditures for 2017 remain as previously stated at approximately $160 to $180 million with higher capitalized stripping costs.

•Provincial approval for the West Detour project is targeted for mid-2018 (current life of mine plan requires approval by end of 2018).

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 and Guy MacGillivray, P.Geo., Exploration Manager, Qualified Persons as defined by Canadian Securities Administrators National Instrument 43-101 “Standards of Disclosure for Mineral Projects.”