This document provides an overview of Detour Gold Corporation, a Canadian gold mining company. Some key points:
- Detour Gold operates the Detour Lake open pit gold mine in Ontario, Canada, which has proven and probable reserves of 15.6 million ounces of gold.
- Production at Detour Lake started in early 2013 and commercial production was reached in August 2013. The mine is expected to produce 270,000 ounces of gold in 2013.
- Detour Gold aims to grow reserves to over 20 million ounces through exploration and expansion of the Detour Lake mine area. The company sees potential for organic growth from its large land holdings in the region.
- Initial capital costs for Detour Lake were
2. 2
Forward Looking Information
This presentation contains certain forward-looking information as defined in applicable securities laws (referred to herein as âforward-looking
statementsâ). Specifically, this presentation contains forward-looking statements regarding 2013 guidance for gold production and total cash
costs, reserve and resource estimates, ore grade, expected mine life, average annual gold production, gold recovery, cash operating costs
and other costs, sensitivity to metal prices and other sensitivities, ramp-up of operations, mining rates reaching approximately 200,000 tpd
by year-end 2013, future operating plans, potential expansion opportunities, and plans for organic growth which includes growing mineral
reserves to more than 20 million ounces. Forward-looking statements involve known and unknown risks, uncertainties and other factors
which are beyond Detour Goldâs ability to predict or control and may cause Detour Goldâs actual results, performance or achievements to be
materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. These
risks, uncertainties and other factors include, but are not limited to, gold price volatility, changes in debt and equity markets, the
uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental
legislation and regulation, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the gold
exploration and development industry, as well as those risk factors discussed in the section entitled âDescription of Business - Risk Factorsâ
in Detour Goldâs 2012 AIF and in the continuous disclosure documents filed by Detour Gold on and available on SEDAR at www.sedar.com.
Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to,
assumptions about the following: the availability of financing for exploration and development activities; operating and capital costs; the
Companyâs ability to attract and retain skilled staff; the mine development schedule; sensitivity to metal prices and other sensitivities; the
supply and demand for, and the level and volatility of the price of, gold; timing of the receipt of regulatory and governmental approvals for
development projects and other operations; the supply and availability of consumables and services; the exchange rates of the Canadian
dollar to the U.S. dollar; energy and fuel costs; the accuracy of reserve and resource estimates and the assumptions on which the reserve
and resource estimates are based; market competition; ongoing relations with employees and impacted communities and general business
and economic conditions. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking
statements contained herein are made as of the date hereof, or such other date or dates specified in such statements. Detour Gold
undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new
information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking
statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.
4. 4
Focus and Discipline
ï§ Leverage to gold price
ï§ Optimize operation
ï§ Organic growth
ï§ Safe jurisdiction
Per Share Value Creation
ï§ Free cash flow growth
ï§ Limit share dilution
ï§ Return on capital
Invest in Detour Gold
Our Vision
Become a leading intermediate gold producer and
premier investment opportunity
5. 5
Note: Cash position at June 30, 2013 and share data at August 12, 2013. Conversion price for the
Notes is US$38.50.
Share Capital
FULLY DILUTED
161.7 M
OPTIONS & FN SHARE
COMMITMENTS
10.7 M
CONVERTIBLE
NOTES
13.0 M
ISSUED AND
OUTSTANDING
138.0 M
C$1.4 B
C$207 M
TOP
SHAREHOLDERS
MARKET CAP
CASH POSITION
PAULSON & CO: 15%
INSTITUTIONS TOTAL: >80%
6. 6
Focused on One Core Asset
Detour Lake - Ontario, Canada
ï§ Low-risk, safe mining jurisdiction
ï§ Large prospective land package of 566 km2 on Abitibi Greenstone Belt
âș Detour Lake open pit mine â 15.6 M oz in reserves
âș Significant potential to expand mineral resources
âș Exploration upside
7. 7
PRODUCTION
2013
Record Timing from âDiscoveryâ to Production
Detour Lake in 6 years
ACQUISITION
/DISCOVERY
PRE-FEASIBILITY
STUDY
FEASIBILITY
STUDY &
PERMITTING
DEVELOPMENT PRODUCTION
2007 2009 2010 2011-12 2013
From Core to Pour
8. 8
Scorecard Highlights
ï§ Delivered results in timely manner over last 6 years
ï§ Built strong management team with track record of success
ï§ Increased mineral resources by 750% since acquisition at <$5/oz
ï§ Completed positive economic studies over a 2-year period
ï§ Raised over $2.5 billion (equity + debt)
ï§ Completed mine construction on time (27 months)
ï§ Obtained strong community and Aboriginal support
ï§ Started gold production in Q1 2013
ï§ Reached commercial production in August 2013 on schedule
Focus
Q3 Q4
Strategy: Execution
Discipline
9. 9
H1 2013
ïŒFirst gold pour in February
ïŒSecured $90 million credit facility
ïŒCommissioned second production line
ïŒ25,000 m drilling program targeting high-grade
gold mineralization
ïŒProduced 74,738 ounces of gold in H1
H2 2013
ïŒReached commercial production in August
ï§ Gold production target of 270,000 ounces for the
year
ï§ Year-end mineral resources/reserves update
2013 Objectives
10. 10
Focus on health and safety of our employees, the well-being of
our community and the protection of the natural environment
ï§ Hiring in the region, giving priority to local Aboriginal communities:
ï§ 92% of workforce from region
ï§ 25% are Aboriginals
ï§ Scholarship and job training
ï§ Supporting local communities
ï§ Business opportunities
ï§ Participation in municipal development
ï§ Corporate philanthropy
NORTHERN
ONTARIO
39%
COCHRANE
24%
COCHRANE
AREA
29%
REST OF
ONTARIO
5%
3%
OTHER
Corporate Responsibility
WORKFORCE ORIGIN
11. 11
OP reserves (M oz) 15.6
Mill throughput (tpd) 55,000
Strip ratio (waste:ore) 3.7
Gold recoveries 91%
Average grade (g/t) 1.03
Estimated mine life (yrs) 21.5
Avg. production (oz/yr) 657,000
Initial capex (C$ B) 1.5
Sustaining capex (C$ B) 1.2
Detour Lake Mine at a Glance
Gold production started in February 2013
12. 12
MAINTENANCE
LABOUR
POWER
DIESEL
G&A
ROYALTY+
OTHER
(2% NSR)
CONSUMABLES
29%
22%
18%
12%
8%
5%
6%
Breakdown of 2013-14 TCC
Operating Costs (LOM) C$/t milled C$/t mined C$/oz
Mining costs 11.65 2.49 388
Processing cost 7.83 -- 260
G&A 1.86 -- 62
Cash operating costs 21.34 -- 710
Royalty (2%) and other 1.26 -- 42
Refining 0.12 -- 4
Silver credit (0.20) -- (7)
Total cash costs (TCC) 22.52 -- 749
A 10% change in:
Diesel or power costs = $9/oz change in TCC
Cdn$ FX rate = $63/oz in TCC
Projected LOM Operating Costs
13. 13
2013 Ramp Up
Mining
ï§ Current stockpiles:
ï§ 1.8 Mt grading 0.7 g/t
ï§ 2.4 Mt grading 0.4 g/t
ï§ Mining rates to ~200,000 tpd by
year-end
ï§ Mining fleet of 20 haul trucks & 5
shovels
Processing Plant
ï§ 55,000 tpd conventional gravity and
CIP processing plant with two
production lines
ï§ Line 1 & 2 in operation
ï§ Optimize and improve efficiencies
14. 14
PLANT SITE
CAMPBELL
PIT
APPROX. PIT SHELL
AT END OF LOM
CURRENT
PIT SHAPE
MINERALIZED
ZONE
Satellite image dated July 2012
NORTH WASTE
DUMP
Mining Production
17. 17
2013 Ramp-up Guidance
ï§ 2013 revised ramp-up guidance
ï§ Total gold production of 270,000 oz
ï§ Post commercial production:
Total cash costs of US$1,100/oz
ï§ Sustaining capital: C$180 M
(C$112 M incurred up to June 30)
ï§ Commercial production reached on
Aug. 12 (to be declared on Sept. 1)
Note: Following the post ramp-up phase at Detour
Lake, both productivity and production are to
increase and drive operating costs down.
19. 19
ï§ Grow reserve base to +20 M oz
ï§ Reserve/resource update for
Detour Lake mine
ï§ Evaluate Detour Lake mine
expansion and Block A
ï§ Large prospective land position of
630 km2
ï§ Tested gold targets on structures
south of Detour Lake: 25,000 m
completed (all results received)
Inferred M&I P&P
10M oz
20M oz
30M oz
15.6
14.9
11.4
8.8
Organic Growth Opportunities
20. 20
*Note: Excludes drilling around Detour Lake and M zone (Block A).
25,000 m
in 2013
15.6 M oz in Reserves
Organic Growth Opportunities
630 km2
21. 21
Near-term objectives (1-3 years):
ï§ Detour Lake reserve/resource update (open pit west expansion)
ï§ Evaluation of potential expansion options
Organic Growth Opportunities
23. 23
Focus and Discipline
ï§ Leverage to gold price
ï§ Optimize operation
ï§ Organic growth
ï§ Safe jurisdiction
Per Share Value Creation
ï§ Free cash flow growth
ï§ Limit share dilution
ï§ Return on capital
Invest in Detour Gold
Our Vision
Become a leading intermediate gold producer and
premier investment opportunity
25. 25
Detour Lake Profile
Detour Lake
Sept. 2012
Mine Plan(3)
Gold price (US$/oz) (1) 1,200
Foreign exchange rate (US$/Cdn$) 1.00
Assumptions Fuel price (US$/barrel) 100
Income/mining tax rate (%) 25/10
Net Smelter Royalty (%) 2
Ore milled (Mt) 470.0
Waste mined (Mt) (4) 1,734
Mine Strip ratio (waste:ore) 3.7
Parameters Avg. gold grade (g/t) 1.03
Total contained gold (M oz) 15.6
Estimated gold recovery (%) 91.0
Total recovered gold (M oz) 14.1
Mine life (years) 21.5
Avg. annual gold production (oz) 657,000
1. US$1,600/oz for 2013, US$1,500/oz for 2014, and US$1,400/oz for 2015.
2. Press release Jan. 31, 2011 with Technical Report dated Mar. 15, 2011.
3. Press release Sept. 4, 2012 with Technical Report dated Oct. 18, 2012.
4. Includes low-grade stockpile.
1.0 g/t Au
0.5 - 1.0 g/t Au
<0.5 g/t Au
20,600E
16,500E
700 m
Open pit
@ 0.5 g/t cut-off
26. 26
Gold Production/Cost/Grade Profile
Note: Excludes stripping adjustments.
800
700
600
500
400
300
200
100
0
Gold Production (â000 oz)
LOM Avg. C$749/oz
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0
1.8
Grade (g/t Au)
LOM Avg. 657,000 oz/yr
900
850
800
750
700
650
600
550
Total Cash Costs (C$/oz)
950
1000 900
Based on September 2012 Mine Production Plan
27. 27
@ US$850/oz
Tonnes
(millions)
Grade
(g/t)
Contained Gold
(â000 oz)
Reserves (1)
Proven 101.6 1.29 4,222
Probable 368.4 0.96 11,351
P&P 470.0 1.03 15,573
Resources (2)
Measured 124.5 1.36 5,424
Indicated 554.3 1.00 17,836
M&I 678.8 1.07 23,261
Inferred 208.5 0.86 5,785
1. After a 95% mining recovery rate; Mining dilution factor of 15.5%.
2. Inclusive of mineral reserves.
Detour Lake Reserves & Resources
As at December 31, 2011
28. 28
2012 completed DH
Historical DH
Block A near-surface resource
Detour Lake
2011 year-end reserves = 15.6 M oz
DH included in 2011 year-end
reserves
DH not included in 2011 year-end
reserves
Detour Lake & Block A