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Corporate Presentation June 18-22, 2012
 

Corporate Presentation June 18-22, 2012

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    Corporate Presentation June 18-22, 2012 Corporate Presentation June 18-22, 2012 Presentation Transcript

    • Building Canada’sLargest Gold Mine Corporate PresentationProduction Early 2013 June 18-22, 2012
    • Forward Looking InformationThis presentation contains certain forward-looking information as defined in applicable securities laws (referred to herein as “forward-looking statements”). Specifically, this presentation contains forward-looking statements regarding the reserve and resourceestimates, ore grade, expected mine life, anticipated gold production, gold recovery, cash operating costs and other costs, capitalcosts, sensitivity to metal prices and other sensitivities, financial analysis of the project, commencement of operations, potentialexpansion opportunities, plans for organic growth and expected drilling activities. Forward-looking statements involve known andunknown risks, uncertainties and other factors which are beyond Detour Gold’s ability to predict or control and may cause DetourGold’s actual results, performance or achievements to be materially different from any of its future results, performance orachievements expressed or implied by forward-looking statements. These risks, uncertainties and other factors include, but are notlimited 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 exchangerate fluctuations, general economic conditions and other risks involved in the gold exploration and development industry, as well asthose risk factors discussed in the section entitled “Description of Business - Risk Factors” in Detour Gold’s 2011 AIF and in thecontinuous disclosure documents filed by Detour Gold on and available on SEDAR at www.sedar.com. Such forward-lookingstatements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptionsabout the following: the supply and demand for gold, and the level and volatility of the price of gold; the availability of financing forexploration and development activities; the estimated timeline for the development of the Detour Lake gold project; the expectedmine life; anticipated gold production; gold recovery; the development schedule; cash operating costs and other costs; the financialanalysis for the project; capital costs; sensitivity to metal prices and other sensitivities; the accuracy of reserve and resourceestimates and the assumptions on which the reserve and resource estimates are based; the receipt of necessary permits; marketcompetition; 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 containedherein are made as of the date hereof, or such other date or dates specified in such statements. Detour Gold undertakes noobligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of newinformation 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-lookingstatements.© 2011 Detour Gold All Rights Reserved. 2
    • NI 43-101 DisclosureInformation Concerning Estimates of Mineral Reserves and ResourcesThe mineral reserve and resource estimates reported in this presentation were prepared in accordance with Canadian NationalInstrument 43-101Standards of Disclosure for Mineral Projects (“NI 43-101”), as required by Canadian securities regulatoryauthorities. For United States reporting purposes, the United States Securities and Exchange Commission (“SEC”) applies differentstandards in order to classify mineralization as a reserve. In particular, while the terms “measured,” “indicated” and “inferred” mineralresources are required pursuant to NI 43-101, the SEC does not recognize such terms. Canadian standards differ significantly fromthe requirements of the SEC. Investors are cautioned not to assume that any part or all of the mineral deposits in these categoriesconstitute or will ever be converted into reserves. In addition, “inferred” mineral resources have a great amount of uncertainty as totheir existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferredmineral resource will ever be upgraded to a higher category. Under Canadian securities laws, issuers must not make any disclosureof results of an economic analysis that includes inferred mineral resources, except in rare cases.On January 31, 2011, Detour Gold announced an updated mineral resource and reserve estimate. The following QPs participated inthis update: Michel Dagbert, Eng., Senior Geostatistician and André Laferrière, P. Geo., Senior Geologist of SGS Canada Inc.(mineral resources); and André Allaire, Eng., Director Mining and Metals and Patrice Live, Eng., Mining Manager of BBA Inc (mineralreserve). The NI 43-101 compliant Technical Report for this update was filed on SEDAR on March 15, 2011.On January 25, 2012, Detour Gold announced a mineral resource and reserve update. The following QPs participated in this update:Michel Dagbert, Eng., Senior Geostatistician of SGS Canada Inc (mineral resources) and Patrice Live, Eng., Mining Manager of BBAInc (mineral reserves).© 2011 Detour Gold All Rights Reserved. 3
    • Invest in Detour Gold  Focus on a world-class asset – Detour Lake  Canada’s largest pure gold play with 15.6 M oz in reserves (@ US$ 850/oz gold price)  Construction progressing on schedule (70% as of May 31)  One of the best cash flow/share opportunities  Gold production starting in Q1 2013  Excellent organic growth potential (5 year plan)  Potential expansion of mill throughput© 2011 Detour Gold All Rights Reserved. 4
    • Share Capital Issued and Convertible Options & FN Share Fully Diluted: Commitments: Outstanding: + Notes: + 112.6 M 13.0 M 8.7 M = 134.3 M  Market cap: C$2.6 Billion  Cash position: C$683 Million  Major shareholders: Paulson & Co. 15% Detour Lake Fidelity Mgmt 8% Detour Gold Mgmt <2% Institutions total >90% Note: Share data and cash position as of May 31, 2012.© 2011 Detour Gold All Rights Reserved. 5
    • Strong Share Performance 1000% Share Issuance vs. Performance DGC equity financings 900% DGC 08/11 800% 571% total return since IPOJan. 2007 to Present Total Return 700% DGC DGC 01/12 600% 07/10 500% DGC 400% 04/08 DGC Randgold 11/09 300% Buenaventura DGC 200% 07/09 Eldorado Osisko AGI 100% (239%) Aurizon G IPO IMG Yamana Newcrest NEM ABX AEM Great Basin 0% Anglo Gold Ashanti AuRico (209%) CG Hecla Goldfields Kinross Gabriel Eco Oro GSC Andina Source: BMO, June 2012 -100% 0 50 100 150 200 Jan. 2007 to Present % Change in Shares Outstanding© 2011 Detour Gold All Rights Reserved. 6
    • Successful Focused Approach DETOUR LAKE: Production RECORD TIMING FROM “DISCOVERY” 2013 TO PROJECTED PRODUCTION 6 years Development 2011-2012 Feasibility Study & Permitting 2010 Pre-feasibility Study 2009 Acquisition/ Discovery 2007© 2011 Detour Gold All Rights Reserved. 7
    • Detour Gold 2012 Objectives Mineral reserves/resources update for 2011 year-end Top up of $277 million to complete the project and working capital Second 45 km segment of transmission line complete 230 kV transmission line connection in Q3 Updated mine plan & operational forecast in Q3 Ore stockpile of 3 Mt available in Q4 for processing Manpower ramp-up to 400 (now 273 employees at site and Cochrane) Delivery of 12 haul trucks and 2 cable shovels Drilling programs:  50,000 m on Block A open pit & initiate pre-feasibility study  5,060 m completed on Lower Detour Lake structure (targeting high- grade mineralization) © 2011 Detour Gold All Rights Reserved. 8
    • Growing Reserve/Resource Base RESOURCE GROWTH EXCEEDING 750% SINCE IPO Date Accumulative DGC Drilling Resources/Reserves (M oz) Inferred M&I 2P 10M 20M 30M2005-05 Estimated by Pelangio2006-09 DGC due diligence2007-12 50,000m2008-06 123,000m2009-09 249,000m 8.82010-06 334,000m $850/oz 11.42011-01 430,000m $850/oz 14.92012-01 523,000m $850/oz 15.6 © 2011 Detour Gold All Rights Reserved. 9
    • Detour Lake Reserves & ResourcesAs at Dec. 31, 2011 Tonnes Grade Contained Gold@ US$850/oz (millions) (g/t) (‘000 oz)Reserves (1)Proven 101.6 1.29 4,222 DISCOVERY COSTProbable 368.4 0.96 11,351 < $10/oz OFP&P 470.0 1.03 15,573Resources (2) RESERVESMeasured 124.5 1.36 5,424Indicated 554.3 1.00 17,836M&I 678.8 1.07 23,261Inferred 208.5 0.86 5,785 1. After a 95% mining recovery rate; Mining dilution factor of 15.5%. 2. Inclusive of mineral reserves.© 2011 Detour Gold All Rights Reserved. 10
    • Detour Lake Profile (@ US$850/oz) January 2012Detour Lake updateProduction start Q1 2013OP reserves (M oz) 15.6 Open pitMill throughput (tpd) 55,000 @ 0.5 g/t cut-off 20,600EStrip ratio (waste:ore) 3.6Gold recoveries 91%Average grade (g/t) 1.03Estimated mine life (yrs) 22Avg. production (oz/yr)(1)(2) 657,000 16,500EInitial Capex (C$ B)(3) 1.45 >1.0 g/t Au 700 m 0.5 - 1.0 g/t Au1. After full commissioning in Yr 1. <0.5 g/t Au2. Based on March 2011 TR.3. Initial capex revised in November 2011. © 2011 Detour Gold All Rights Reserved. 11
    • Valuation Re-rating:<1 Yr from Production Intermediate Producers Intermediate Producers P/NAV (Average 0.9x) Reserves/Share Ratio (Average 0.07) 0.17 1.1x 1.1x 0.14 1.0x 0.12 Avg 0.9x 0.8x 0.8x 0.6x 0.6x Avg 0.07 0.04 0.04 0.04 0.03Source: Bloomberg and Company Reports, Equity Research and Thomson Financial at May 30, 2012.Note: NAV per share figures are based on equity research consensus; Share data on fully diluted in the money shares outstanding..© 2011 Detour Gold All Rights Reserved. 12
    • Total Cash Costs Since 2010 (release of Feasibility Study), $ 800 $ 796 inflationary pressure seen in operating costs $ 706 $ 706 Approx. % of total cash cost/oz in FS1 $ 700 Maintenance Consumables $ 600 24% 25% $ 500 Royalty 4% 7% 14% Labour G&A Junior Senior Intermediate Producers Producers Producers 13% 13% Diesel2012E Cash Cost Profile (US$/oz)* Power*Source: BMO Equity ResearchSeniors Producers include: Agnico-Eagle, AngloGold Ashanti, Barrick, Gold Fields, Goldcorp, Kinross, Newcrest, Newmont, Polyus and Yamana.Intermediate Producers include: African Barrick, Alacer, AuRico, Centamin Egypt, Centerra, Eldorado, Harmony, IAMGold, New Gold, Osisko, Petropavlovsk, Randgold and SEMAFO.Junior Producers include: Alamos Gold, Aurizon, Avion, Avocet, CGA Mining, Cluff Gold, Dundee Precious Metals, Golden Star, Great Basin Gold, Kingsgate, Lake Shore,OceanaGold, Perseus, Primero, Resolute, San Gold and Teranga.1. Total estimated cash cost of US$543/oz based on March 2011 TR using cost parameters from feasibility study, including US$850/oz gold price and US$80/barrel oil. © 2011 Detour Gold All Rights Reserved. 13
    • Mine SiteConstructionProgressing on Schedule© 2011 Detour Gold All Rights Reserved. 14
    • Detour Lake: We are on Schedule 2010 2011 2012 2013Construction Schedule Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Award of Engineering ContractAward of PCM ContractDetailed EngineeringConstruction camp (1,200 people)Power line (Phase 1&2) – Electrification 1 2Equipment purchase/delivery & assemblyPre-strippingProcess plant – Commissioning start-upTailings dam construction (first cell)Provincial Permits/Aboriginal IBAsFederal PermitsStart production and ramp-up GOLD PRODUCTION PROJECTED IN 1Q 2013 © 2011 Detour Gold All Rights Reserved. 15
    • Detour Lake: We are on Budget Capital Expenditures (C$ M) Spent Committed Project Control Description May 31, May 31, Estimate 2012 2012 (as of 11/2011) Mining Fleet and Facilities 117 170 203 Crushing and Processing (P&E) 390 586 565 Tailings and Water Mgmt 15 45 65 Infrastructure and Power line 133 148 156 Other Indirect 158 202 310 EPCM 80 100 101 Contingency (10%) - 1 50 Total (pre-production) 893 1,252 1,450 PROJECT CONSTRUCTION 70% COMPLETE© 2011 Detour Gold All Rights Reserved. 16
    • 2012 Operational Readiness PlanOre ready to be processed by the fourth quarter of 2012 Pre-production capital costs include $78 M for pre-strip activities Up to 3 Mt of ore ready for process 2012 Pre-Stripping PROJECT CHANGE Feasibility PCE Status OF SCOPE Study (11/2011) (05/31/2012) = Overburden/Till 16 Mt 21 Mt 5.50 Mt Waste - 10 Mt 1.82 Mt A BENEFIT Ore 3 Mt - Ore available for Estimated Cost C$30 M C$78 M - processing in 2012 © 2011 Detour Gold All Rights Reserved. 17
    • Mining is Ramping Up© 2011 Detour Gold All Rights Reserved. 18
    • Mining is Ramping Up© 2011 Detour Gold All Rights Reserved. 19
    • Initial Mining Fleet at Site 10 CAT 795F trucks at site (2 supplied by CAT); Loading Units 4 more being assembled 3 X Hydraulic CAT6060 (25 m3) 2 CAT6060 shovels in operation 2 X Electric cable shovels (48 m3) Haulers 23 X CAT 795F trucks (320 t); 30-35 at peak of operation © 2011 Detour Gold All Rights Reserved. 20
    • Detour Lake Development Progress Detailed engineering, procurement of major equipment and awarding of major contracts complete Second 45 km segment of powerline complete Detour Lake Pre-stripping program ongoing 45 45 km km Powerline Powerline Gravel (34 km) Installation of mill equipment underway Paved road (151 km) Truck wash facilities complete Permanent camp construction completed © 2011 Detour Gold All Rights Reserved. 21
    • Detour Lake Mining Facilities© 2011 Detour Gold All Rights Reserved. Note: Open pit reserves using US$850/oz gold 22 22
    • Overview Detour Lake Facilities Processing Plant Truck Wash Truck Shop & Warehouse Mine Offices12-06-08 © 2011 Detour Gold All Rights Reserved. 23
    • Overview Detour Lake Facilities Stockpile ReclaimSecondaryCrushers Primary Crusher12-06-08 © 2011 Detour Gold All Rights Reserved. 24
    • Primary Crusher (up to 100,000 tpd capacity) Here now12-06-08 Surface Gyro is 9 m high 35 m © 2011 Detour Gold All Rights Reserved. 25
    • Stockpile Reclaim Cover Stockpile Reclaim 12-06-08 Secondary and Pebble Crushers12-06-08 © 2011 Detour Gold All Rights Reserved. 26
    • Processing Plant Building Ball Mills SAG Mills12-06-08 © 2011 Detour Gold All Rights Reserved. 27
    • Processing Plant Building CIP Tanks Pumps 12-06-08Hydrocyclones © 2011 Detour Gold All Rights Reserved. 28
    • Simple Process Plant Conventional gravity and CIP plant 55,000 tpd (=92% availability of 60,000 tpd capacity) 2 parallel lines (each with 1 secondary cone crusher + 1 SAG and 1 ball mill) A  Estimated gravity recovery: 30-40%  Estimated overall gold recovery: 91.0%A  Leach time 29 hours  Leach feed size 80% passing 95 μm © 2011 Detour Gold All Rights Reserved. 29
    • Detour Lake Employees & ContractorsConstruction Phase Operation Phase (Starting 2013) >1,500 workers (currently)  400-500 employees Ramping up DGC team (273)  Rotation 1 week in /out  New modern camp facilities with 400 en-suite rooms completed© 2011 Detour Gold All Rights Reserved. 30
    • Focus: Hiring Local First 273 DETOUR GOLD EMPLOYEES (May 30, 2012) Require a complement of +400 employees by production start in early 2013 25% Workforce Origin Professional 4% 2% Front Line Cochrane 75% Cochrane Area 28% Northern Ontario 44% Professional are: MGMT, Eng., Geo., Supt. 22% Rest of Ontario Front Line are: Operators, Admin, Support 28% Reside in Cochrane Other Continuing focus on hiring local/regional *25% of employees are Aboriginals © 2011 Detour Gold All Rights Reserved. 31
    • Planning for OrganicGrowthUnder-explored Greenstone Belt© 2011 Detour Gold All Rights Reserved. 32
    • Planning for Organic Growth 5 yr plan for successful organic growth Large prospective land position of approx. 540 km2  Land position increased with acquisition of Trade Winds properties  Two main gold structures with total strike length of >80 km  Continue focus on Detour Lake deposit extension (northern structure)  Test targets on structure south of Detour Lake Future Objectives  Grow reserve base to +20 M oz (@ US$850/oz)  Increase mill throughput to above 75,000 tpd for gold production output of +800,000 oz/yr  Find high-grade ore near-surface within trucking distance to supplement mill© 2011 Detour Gold All Rights Reserved. 33
    • 2012 Plan for Successful Organic Growth Priority #1 on Block A  Area between Block A open pit resource (M-Zone) and the underground QK Zone discovered by Placer in mid-90’s  Drilling program of 50,000 m in 1H 2012  Start pre-feasibility study for small open pit (Block A resource)  Advance exploration of QK underground zone Priority #2 on Lower Detour Deformation Zone (+40 km)  5,060 m of diamond drilling completed: N-S drill fence on high-grade drill hole intercepts (53 g/t Au / 3 m & 22.6 g/t Au / 1 m)  115 km of IP geophysical survey completed  Geological and structural mapping; data compilation© 2011 Detour Gold All Rights Reserved. 34
    • Planning for Organic Growth 2012 target Deposit open to the west and at depth +50,000 m of drilling for 2012 (Block A open pit above QK Zone) *Not updated with TWD Dec. 30th PR. On Dec. 1, 2011, Detour Gold announced the acquisition of TWD. © 2011 Detour Gold All Rights Reserved. 35
    • Priority # 1 - Block A TargetBlock A near-surface resource 2012 proposed DH 2012 extension DH Detour Lake DH included in 2011 year-end reserves 2011 year-end reserves = 15.6 M oz DH not included in 2011 year-end reserves Historical DH © 2011 Detour Gold All Rights Reserved. 36
    • Priority # 1 - Block A Target Block A 2012 Drilling Program June 10, 2012 2012 proposed DH 2012 extension DH 2011 year-end reserves 2012 completed DH Historical DH = 15.6 M oz Cancelled or not accessible© 2011 Detour Gold All Rights Reserved. 37
    • Planning for Organic Growth +80 km of favourable geology Sunday Lake Option 15.6 M oz in Reserves Existing DDH Insert- see next slide Gold occurrence (OGS) DDH intersection >1g/2m DDH intersection >1g/10m MMI Survey Coverage MMI Au Anomaly *Note: Excludes drilling around Detour Lake and M zone (Block A).© 2011 Detour Gold All Rights Reserved. 38
    • Planning for Organic Growth Completed drilling© 2011 Detour Gold All Rights Reserved. 39
    • Planning for Organic Growth? ?© 2011 Detour Gold All Rights Reserved. 40
    • Evaluating Expansion Opportunities  Best scenario is throughput 2012 increase from 55,000 to 75,000 tpd @ US$1,200/oz  Start pre-feasibility on Block A  Complete feasibility study and 2013 assess technical feasibility and resultant project economics  At >US$1,000/oz and after 2014 successful commercial production is achieved, proceed with plant expansion  Complete expansion within 2 years© 2011 Detour Gold All Rights Reserved. 41
    • Invest in Detour Gold  Focus on a world-class asset – Detour Lake  Canada’s largest pure gold play with 15.6 M oz in reserves (@ US$ 850/oz gold price)  Construction progressing on schedule (70% as of May 31)  One of the best cash flow/share opportunities  Gold production starting in Q1 2013  Excellent organic growth potential (5 year plan)  Potential expansion of mill throughput© 2011 Detour Gold All Rights Reserved. 42
    • AdditionalInformation© 2011 Detour Gold All Rights Reserved. 43
    • Detour Lake – Surface Plan DH included in the 2011 year-end reserves DH not included in the 2011 year-end reserves Pre 2007 DH2011 Year-end reserves = 15.6 M oz© 2011 Detour Gold All Rights Reserved. 44
    • Detour Lake – Long SectionLooking 20,070 N QK Zone DH included in the 2011 year-end reserves DH not included in the 2011 year-end reserves Pre 2007 DH© 2011 Detour Gold All Rights Reserved. 45
    • Block Model - Gold Distribution Approx. 3 M oz. between 0.3-0.5 g/t Au 1,600 OK (oz Au) ID3 (oz Au) 1,400 1,200 1,000 Ounces (000’s) 800 600 400 200 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 Cut-off BINs© 2011 Detour Gold All Rights Reserved. 46
    • Management & Directors Management  Gerald Panneton, Founder, President &  Derek Teevan, VP Aboriginal & Government CEO, Director Affairs  Michael Kenyon, Chairman  Eric Josipovic, Controller  Paul Martin, CFO  Drew Anwyll, Director of Operations  Pierre Beaudoin, Sr. VP Capital Projects  Andrew Croal, Dir. Technical Services  Pat Donovan, VP Corporate Development  Laurie Gaborit, Dir. Investor Relations  Julie Galloway, VP General Counsel &  Greg Miazga, Dir. Construction & Corporate Secretary Engineering  James Mavor, VP Finance  Bill Snelling, Director Corporate Systems  Rachel Pineault, VP HR & Northern and Controls Affairs  Christian Brousseau, Project Manager  James Robertson, VP Environment &  Patrik Gillerstedt, Mine Manager Sustainability Directors Peter Crossgrove Ingrid Hibbard Gerald Panneton Louis Dionne Michael Kenyon Jonathan Rubenstein Robert E. Doyle Alex G. Morrison Graham Wozniak© 2011 Detour Gold All Rights Reserved. 47
    • Contact InformationGerald Panneton, President & CEOEmail: gpanneton@detourgold.comPh: 416 304 0800Laurie Gaborit, Director Investor RelationsEmail: lgaborit@detourgold.comPh: 416 304 0800www.detourgold.com© 2011 Detour Gold All Rights Reserved. 48