Mr. Mick McMullen reports
DETOUR GOLD REPORTS Q4 AND FY 2019 PRODUCTION RESULTS
Detour Gold Corp. has released 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 2019 figures are preliminary, unaudited and subject to final adjustment.
with a 30-per-cent decline in the TRIFR (total recordable injury frequency rate) for both employees and contractors from 2.05 in 2018 to 1.44 in 2019;
of 601,566 ounces in 2019, in the top quartile of the company's guidance range of 590,000 to 605,000 ounces;
Net cash balance
(1) at Dec. 31, 2019, of $114-million;
Strong positive block model reconciliation
with ounces mined up 19.3 per cent relative to mineral reserves for 2019;
Year-end ore stockpile
of 4.5 million tonnes grading 0.60 gram per tonne Au for 86,300 contained ounces.
(1) Non-international financial reporting standards measures
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 per cent more tonnes and slightly lower grade (minus 4.4 per cent) for 19.3 per cent 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."
The attached table contains the key operating metrics for the Detour Lake mine by quarter for 2019.
2019 FOURTH QUARTER AND FULL YEAR OPERATIONAL STATISTICS
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 (ktpd) 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 Nov. 25, 2019, Detour Gold announced that it has entered into a definitive agreement whereby Kirkland Lake Gold Ltd. has agreed to acquire all of the issued and outstanding common shares of Detour Gold pursuant to a plan of arrangement.
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 filed with the Canadian securities regulatory authorities on Dec. 23, 2019.
For Detour Gold, completion of the transaction is subject to, among other things, the approval by at least 66-2/3 per cent 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 Jan. 28, 2020, at 10 a.m. (Toronto time) at Commerce Court West, Suite 5300, 199 Bay St., Toronto, Ont. The circular is available on the investor relations section of Detour Gold's website and under Detour Gold's profile on SEDAR.
Detour Gold shareholders may contact Laurel Hill Advisory Group, the company's proxy solicitation agent, for questions and assistance in voting their shares.
North America toll-free: 1-877-452-7184
Collect calls outside North America: 1-416-304-0211
The scientific and technical content of this news release was reviewed, verified and approved by David Londono, mine general manager, a qualified person as defined by Canadian Securities Administrators' National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.
About Detour Gold
Detour Gold is a mid-tier gold producer in Canada that holds a 100-per-cent interest in the Detour Lake mine, a long-life, large-scale, open-pit operation.
We seek Safe Harbor.
© 2020 Canjex Publishing Ltd. All rights reserved.