TORONTO--(BUSINESS WIRE)-- Detour Gold Corporation (TSX: DGC) (“Detour Gold” or the “Company”) reports its fourth quarter and full year 2019 production results, delivering in the top quartile of the Company’s 2019 guidance range.
All amounts are in U.S. dollars unless otherwise indicated. All references to non-IFRS measures are denoted with the superscript “0” and are discussed at the end of this news release. All 2019 figures are preliminary, unaudited and subject to final adjustment.
• Safety metrics improving with a 30% decline in the TRIFR for both employees and contractors from 2.05 in 2018 to 1.44 in 2019
• Gold production of 601,566 ounces in 2019, in the top quartile of our guidance range of 590,000 – 605,000 ounces
• Net cash balance (0) at December 31, 2019 of $114 million
• Strong positive block model reconciliation with ounces mined up 19.3% relative to mineral reserves for 2019
• Year-end ore stockpile of 4.5 Mt grading 0.60 g/t Au for 86,300 contained ounces
Mick McMullen, President and Chief Executive Officer, stated: “I’m very pleased to see a substantial reduction in our injury rate over the past year, which reflects all of the hard work that’s being put in by our employees and contractors to keep our people safe.
That great safety result was matched by strong production for the year, where, at 601,566 ounces, Detour Gold delivered in the top quartile of our upwardly-revised guidance range for ounces of gold production. Our cash generation was excellent as well. We improved from a net debt position of $117 million at the end of 2018 to a net cash position of $114 million at the end of 2019. That represents a total cash generation of $231 million over the year.
Our Detour Lake Mine orebody continues to perform strongly, with 24.9% more tonnes and slightly lower grade (minus 4.4%) for 19.3% more ounces in 2019 relative to the mineral reserves. We are seeing more lower grade material around the periphery of the deposit which is still economic and this material is being processed as ore.
We are continuing to work hard to deliver on the operational improvements that we initiated in 2019, with a view to setting up the Detour Lake Mine for continued success.”
2019 Fourth Quarter and Full Year Operational Statistics
The table below contains the key operating metrics for the Detour Lake Mine by quarter for 2019:
Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 FY 2018
Ore mined (Mt) 5.3 5.1 5.2 5.7 21.3 20.1
Waste mined (Mt) 21.3 21.8 21.1 20.7 85.0 84.7
Total mined (Mt) 26.6 26.9 26.3 26.4 106.3 104.8
Strip ratio (waste:ore) 4.1 4.3 4.1 3.6 4.0 4.2
Mining rate (k tpd) 296 296 286 287 291 287
Ore milled (Mt) 5.2 5.4 5.6 5.8 22.0 20.7
Head grade (g/t Au) 1.00 0.93 0.83 0.93 0.92 1.04
Recovery (%) 92.2 92.8 91.2 92.2 92.1 90.1
Mill throughput (tpd) 57,880 59,376 61,348 62,812 60,370 56,594
Ounces produced (oz) 154,709 150,079 137,670 159,109 601,566 621,128
Ounces sold (oz) 157,723 153,748 137,872 155,356 604,699 610,672
Note: Totals may not add due to rounding
Kirkland Lake Transaction Update
On November 25, 2019, Detour Gold announced that it has entered into a definitive agreement whereby Kirkland Lake Gold Ltd. (“Kirkland Lake Gold”) has agreed to acquire all of the issued and outstanding common shares of Detour Gold pursuant to a plan of arrangement (the “Transaction”).
The Detour Gold Board of Directors, with the recommendation of a special committee, unanimously recommends that Detour Gold shareholders vote FOR the Transaction. The terms of the Transaction and the potential benefits to the Company’s shareholders are further described in the management information circular (the “Circular”) filed with the Canadian securities regulatory authorities on December 23, 2019.
For Detour Gold, completion of the Transaction is subject to, among other things, the approval by at least 66 2/3 percent of the votes cast by its shareholders either voting in person or represented by proxy at a special meeting of shareholders, which is scheduled to be held on January 28, 2020, at 10:00 AM (Toronto time) at Commerce Court West, Suite 5300, 199 Bay Street, Toronto, Ontario. The Circular is available on the Investor Relations section of Detour Gold’s website, www.detourgold.com/investors/ and under Detour Gold’s profile on SEDAR at www.sedar.com.
Detour Gold shareholders may contact Laurel Hill Advisory Group, the Company’s proxy solicitation agent, for questions and assistance in voting their shares:
Laurel Hill Advisory Group