TORONTO, ONTARIO--(Marketwired - April 27, 2017) - Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") reports its operational and financial results for the first quarter of 2017. This release should be read in conjunction with the Company's first 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 net earnings (loss), and adjusted basic net earnings (loss) per 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.

Q1 2017 Highlights
•Gold production of 131,418 ounces
•Average mill throughput of 58,114 tpd and mining rate of 242,000 tpd
•Total cash costs of $788 per ounce sold and AISC of $1,118 per ounce sold
•Revenues of $163.7 million on gold sales of 134,213 ounces at an average realized price of $1,216 per ounce
•Earnings from mine operations of $22.2 million
•Repurchased $20.0 million (face value) of convertible notes
•Net earnings of $6.0 million ($0.03 per share) and adjusted net earnings of $10.5 million ($0.06 per share)
•Cash and short-term investments balance of $133.0 million at March 31, 2017
•Updated life of mine plan for the Detour Lake operation issued on March 22, 2017

"We have achieved our operational targets for the first quarter and reduced our debt a further $20 million from cash flow," said Paul Martin, President and CEO. "We are looking forward to the remainder of the year with gradual operational improvements expected from an expanded mining fleet and success from performance initiatives being implemented at the mine operation."

Q1 2017 Summary Operational Results
•Gold production totaled 131,418 ounces, in line with projections for the first quarter.
•Mill throughput in the first quarter was 5.2 million tonnes (Mt), inclusive of a planned shutdown in January to replace SAG and ball mill liners on both lines. Head grade for the quarter was 0.88 grams per tonne (g/t) and mill recoveries averaged 89%, both in line with budget.
•A total of 21.8 Mt (ore and waste) was mined in the first quarter (equivalent to mining rates of 242,000 tpd). The Company's new CAT6060 shovel was commissioned in late March. Mining around the Campbell pit area is on track.

Detour Lake Mine Statistics
Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016
Ore mined (Mt) 4.8 5.8 5.0 5.5 5.8
Waste mined (Mt) 17.0 15.0 18.5 16.4 15.2
Total mined (Mt) 21.8 20.9 23.5 21.9 21.0
Strip ratio (waste:ore) 3.6 2.6 3.7 3.0 2.6
Mining rate (tpd) 242,000 227,000 256,000 241,000 231,000

Ore milled (Mt) 5.2 5.5 5.2 5.3 4.7
Head grade (g/t Au) 0.88 0.90 0.88 0.92 0.91
Recovery (%) 89 90 87 89 91
Mill throughput (tpd) 58,114 60,052 56,453 58,466 52,165
Mill operating time (%) 85 86 84 87 88
Ounces produced (oz) 131,418 143,512 127,758 139,359 127,136
Ounces sold (oz) 134,213 144,668 113,845 131,606 137,608

Average realized price ($/oz) $1,216 $1,210 $1,281 $1,230 $1,172
Total cash costs ($/oz sold) $788 $855 $802 $691 $637
AISC ($/oz sold) $1,118 $1,132 $1,042 $1,030 $824

Mining (Cdn$/t mined) $2.92 $3.25 $2.66 $2.75 $2.94
Milling (Cdn$/t milled) $10.26 $8.74 $11.74 $9.55 $9.08
G&A (Cdn$/t milled) $3.46 $3.46 $3.46 $3.03 $3.51

Note: Totals may not add up due to rounding. G&A includes costs related to agreements with Aboriginal communities.
•Total cash costs were $788 per ounce sold in the first quarter, in line with plan. Costs included a scheduled plant shutdown and were impacted by higher consumption rates of certain consumables (mill reagents), higher price for diesel fuel, partially offset by a stronger U.S. dollar than plan.
•AISC were $1,118 per ounce sold in the first quarter, reflecting sustaining capital expenditures of $35.4 million and deferred stripping costs of $3.4 million.
•Sustaining expenditures included $28.7 million for mining (mainly relating to mining equipment, including the new CAT6060 shovel, and significant components to the mobile fleet), $3.9 million for the construction of the tailings facility, $1.5 million for processing, and $1.3 million for site infrastructure, G&A and other.

Q1 2017 Financial Review
•Revenues for the first quarter were $163.7 million. The Company sold 134,213 ounces of gold at an average realized price of $1,216 per ounce.
•Cost of sales for the first quarter totaled $141.5 million, including $35.1 million of depreciation (or $262 per ounce sold).
•Earnings from mine operations for the first quarter totaled $22.2 million.
•Net earnings for the first quarter were $6.0 million ($0.03 per share). Adjusted net earnings in the first quarter amounted to $10.5 million ($0.06 per share).

Liquidity and Capital Resources
•Cash and short term investments totaled $133.0 million at March 31, 2017, following the repurchase of $20.0 million of convertible notes in March.

Summary Financial Data
(in $ millions unless specified) Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016
Metal sales 163.7 176.6 152.0 166.7 163.0
Production costs 106.4 123.9 91.3 93.4 89.4
Depreciation 35.1 47.8 35.5 39.2 42.8
Cost of sales 141.5 171.7 126.8 132.6 132.2
Earnings from mine operations 22.2 4.8 25.2 34.0 30.8

Net income (loss) 6.0 (13.5 ) 9.7 (30.7 ) 27.6
Net income (loss) per share 0.03 (0.08 ) 0.06 (0.18 ) 0.16
Adjusted net earnings (loss) 10.5 (6.0 ) 1.3 3.9 11.3
Adjusted net earnings (loss) per share 0.06 (0.03 ) 0.01 0.02 0.07

Note: Totals may not add up due to rounding.

Financial Risk Management
•As at March 31, 2017, the Company had $149.0 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 1.39.
•As at March 31, 2017, the Company had 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.
•As at March 31, 2017, the Company had a total of 21 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 winter drilling program at Zone 58N is completed with approximately 21,805 metres in 58 holes. The drilling program focused between vertical depths of 250 and 450 metres at a 35 metre spacing. Assay results are expected prior to end of the second quarter and will be incorporated in the model and conceptual design in preparation for an advanced underground exploration program.
•Drilling program expected to continue this summer at Zone 58N.
•An Induced Polarization (IP) geophysical survey of 85 line kilometres was completed in the area east of the current tailings facility, along the Sunday Lake Deformation Zone.

2017 Outlook
•Detour Gold's guidance for 2017 is between 550,000 and 600,000 ounces of gold at total cash costs of $690 to $750 per ounce sold. All-in sustaining costs are expected to be between $1,025 and $1,125 per ounce sold.
•Mining rates are expected to commence trending higher starting in the second quarter with the addition of a CAT6060 shovel and four haul trucks, bringing the available fleet to six shovels and 32 trucks and supported by the addition of a ROM fleet.
•Both head grade and gold recovery are expected to improve during the second half of the year. The installation of a lead nitrate and oxygen control system to assist with improving recoveries is expected to be completed in the second quarter and commissioned in the third quarter.
•Projected capital expenditures for 2017 remain as previously stated at approximately $160 to $180 million, including $14 million of capitalized stripping and $5 million of non-sustaining expenditures for the development of West Detour.
•The Company is in the process of arranging up to $500 million in bank debt which will be used to repay the outstanding convertible notes (currently $338 million) and replace the Company's senior secured credit facility of Cdn$135 million. The Company has received indicative term sheets from the members of its banking syndicate and anticipates, subject to final negotiations, closing the facility by the end of the second quarter of 2017.

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."

Detour Gold Corp. TSX:DGC 10:44 16.96 CAD +1.76 +11.58%