This document provides an overview and summary of Detour Gold Corporation's updated life of mine plan for the Detour Lake gold mine in Ontario, Canada. Key highlights include:
- The mine life is extended to 23 years, producing an average of 655,000 ounces of gold annually.
- Total proven and probable reserves are estimated at 16.4 million ounces of gold.
- Production is expected to increase over the next several years as the second West Detour pit comes online in 2018 and mill throughput expands.
- Operating costs are estimated to average $690 per ounce over the life of mine, with capital costs totaling approximately $1.225 billion.
2. 2
Forward Looking Information
This presentation contains certain forward-looking information and statements as defined in applicable securities law (referred to herein as
“forward-looking statements”). Forward-looking statements include, but are not limited to, statements with respect to the 2016 guidance
(gold production, total cash costs, all-in sustaining costs, and capital expenditures), updated mine plan and economic analysis of the Detour
Lake mine including, but not limited to, the life of mine plan, the waste to ore ratio, processing and production rates, grades, metallurgical
recovery rates, operating and capital costs, the projected life of mine, the net present value, opportunities to optimize the mine operation,
the success and continuation of exploration activities, the future price of gold, reclamation obligations, government regulations and
environmental risks.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause 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, assumptions and parameters underlying the
life of mine plan not being realized, a decrease in the future gold price, discrepancies between actual and estimated production, changes in
costs (including labour, supplies, fuel and equipment), changes to tax rates; environmental compliance and changes in environmental
legislation and regulation, 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 related Technical Report and section entitled “Description of Business -
Risk Factors” in Detour Gold’s 2014 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 sustaining capital
costs; the Company’s ability to attract and retain skilled staff; sensitivity to metal prices and other sensitivities; the supply and demand for,
and the level and volatility of the price of, gold; 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.
All forward-looking statements in this presentation are necessarily based on opinions and estimates made as of the date such statements
are made and are subject to important risk factors and uncertainties, many of which cannot be controlled or predicted. Detour Gold and the
Qualified Persons who authored the associated Technical Report undertake 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.
3. 3
Notes to Investors
Non-IFRS Financial Performance Measures
Detour Gold has included non-IFRS measures in this presentation. The Company believes that these measures, in addition to conventional
measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company.
The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under
IFRS, and therefore may not be comparable to other issuers. Other companies may calculate these measures differently as a result of
differences in underlying principles and policies applied.
Total site costs and total site costs per ounce
Detour Gold reports total site costs and total site costs per ounce on a produced basis in this presentation. Total site costs include
production and operating costs such as mining, processing, site general and administration, bullion shipment, refining, agreements with
Aboriginal communities, capital costs (excluding closure costs) and net of silver sales. These are exclusive of depreciation and depletion.
The Company calculates total site costs per ounce as the sum of total site costs (as described above) divided by the total gold ounces
produced. Gold ounces produced is noted before delivering the royalty in kind ounces.
Unit costs
Detour Gold reports the following unit costs:
Mining unit costs: calculated as mining costs divided by total tonnes mined (ore + waste).
Processing unit costs: calculated as process costs (excluding bullion delivery and refining) divided by the total tonnes milled.
G&A unit costs: calculated as site G&A costs (excluding costs related to agreements with Aboriginal communities) divided by total tonnes
milled.
All-in sustaining costs
The Company believes this measure more fully defines the total costs associated with producing gold. The Company calculates all-in
sustaining costs as the sum of total cash costs (as described below), share-based compensation, corporate general and administrative
expense, exploration and evaluation expenses that are sustaining in nature, reclamation cost accretion (also known as unwinding of the
discount on decommissioning and restoration provisions), sustaining capital including deferred stripping, and realized gains and losses on
hedges due to operating and capital costs, all divided by the total gold ounces sold to arrive at a per ounce figure.
Total cash costs
Total cash costs are reported on a sales basis. Total cash costs include production costs such as mining, processing, refining and site
administration, agreements with Aboriginal communities, less non-cash share-based compensation and net of silver sales divided by gold
ounces sold to arrive at total cash costs per gold ounce sold. The measure also includes other mine related costs incurred such as mine
standby costs and current inventory write downs. Production costs are exclusive of depreciation and depletion. Production costs include the
costs associated with providing the royalty in kind ounces.
4. 4
Notes to Investors
The mineral reserve and resource estimates reported in this presentation were prepared in accordance with Canadian National Instrument
43-101Standards of Disclosure for Mineral Projects (“NI 43-101”), as required by Canadian securities regulatory authorities. For United
States reporting purposes, the United States Securities and Exchange Commission (“SEC”) applies different standards in order to classify
mineralization as a reserve. In particular, while the terms “measured,” “indicated” and “inferred” mineral resources are required pursuant to
NI 43-101, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC. Investors are
cautioned not to assume that any part or all of the mineral deposits in these categories constitute or will ever be converted into reserves. In
addition, “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under
Canadian securities laws, issuers must not make any disclosure of results of an economic analysis that includes inferred mineral resources,
except in rare cases.
Technical Report
On January 25, 2016, Detour Gold announced an updated life of mine plan for the Detour Lake operation and filed a NI 43-101 compliant
Technical Report on SEDAR. The Technical report was prepared by the following Qualified Persons from Detour Gold: Drew Anwyll, P.Eng.,
Senior VP Technical Services (lead author); Andrew Croal, P.Eng., Director Technical Services; Ruben Wallin, P.Eng., Vice President
Environment and Sustainability; David Ritchie, M.Eng., P.Eng., Principal Geotechnical Engineer for AMEC Foster Wheeler acting as TMA
Engineer of Record; and Jacques McMullen, P.Eng. Corporate Technical Advisor.
Qualified Persons
The scientific and technical content of this presentation 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”.
All costs are presented in United States dollars except as noted.
Information Containing Estimates of Mineral Reserves and Resources
5. 5
Unique Investment Opportunity
Mining-friendly Jurisdiction
Large-scale, long mine life
Strong cash flow profile
Production growth opportunities
Favourable exposure to
Canadian Dollar
Largest gold producing mine not
controlled by a senior producer
DOMINANT
GOLD PRODUCER
IN CANADA
6. 6
Gold production of 505,558 ounces
All-in sustainable costs declined ~35%
during 2015
Debt reduced by $123 million
Cash position increase to ~$161 M
Electricity contract extended 5 years
to end of 2024
Encouraging high-grade gold intercepts
at Lower Detour
2015 Highlights
Delivering strong performance at Detour Lake Mine
232
457
506
0
100
200
300
400
500
2013 2014 2015
2013-2015 Gold
Production (k oz)
9. 9
106
125 128
146
0
20
40
60
80
100
120
140
Q1 Q2 Q3 Q4
2015 Ending with Strong Q4
2015 Gold Production (k oz)
Record performance in last quarter
Gold production:
146,417 oz
Improved grades:
0.98 g/t
Access to higher grades
from Phase 1 pit
10. 10
106 125 128 146
$1,321
$1,030 $1,071
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
0
50
100
150
200
Q1 Q2 Q3 Q4
2015 All-in Sustaining Costs
Meeting low end of 2015 guidance
1. Refer to the section on Non-IFRS Performance Measures on slide 3 of this presentation.
2. 2015 estimates subject to year-end audit.
■ AISC ($/oz sold)1
■ Gold Production (k oz)
2015 Estimated AISC 1,2
$1,040-1,060 /oz sold
with Q4 at $850-875/oz sold
Estimated sustaining capital costs2
$90 M
Capitalized stripping costs
$10 M
$850-875
11. 11
2016 Guidance1
TCC2
$675-
$750
AISC/oz sold2
$840-$940
540,000 -
590,000
Gold ounces
ESTIMATED
COSTS
ESTIMATED
PRODUCTION
1. Refer to the section on Non-IFRS Performance Measures on slide 3 of this presentation.
Cost assumptions:
Gold price of $1,075/oz, US$/C$ exchange rate of 1.33, diesel fuel price of
C$0.75/L, and power cost of C$0.04/kWh
2016Strong production growth
12. 12
2016 Operating Plan
1MINE
2 MILL
Mining target:
90-100 Mt total
Strip ratio (SR) projected:
3.3:1
Milling target:
>20 Mt ore
Plant improvement plan
› 410-conveyor: modify to
2 separate conveyor units
Quarterly production range: 125-150 k oz
13. 13
2016 Sustaining Capital
Mine
$15 M
TMA
$30 M
Mill
$10 M
Other
$10 M
13
2016 All-in Sustaining Costs (AISC)
Forecast
Total Cash Costs (TCC) $675-750/oz sold1
Sustaining Capital $60-70 M
Capitalized Stripping $5-10 M
Corporate G&A $25 M
Exploration $2-4 M
AISC $840-940/oz sold1
Additional, non-sustaining capital of ~$8 M for West Detour
& $8-10 M for Lower Detour definition drilling
1. Refer to the section on Non-IFRS Performance Measures on slide 3 of this presentation.
14. 14
Detour Lake Mine
New Life of Mine (LOM) Plan
Assumptions Long-Term
Gold price $1,200/oz
US$/C$ 1.23
Diesel C$0.80/L
Power cost C$0.08/kWh
15. 15
LOM Plan Goals
New LOM Plan:
De-risks with West Detour
Optimizes cash flow
Improves NPV
De-risk execution plan
Incorporate gained experience
Include West Detour
Improve production profile
Defer near-term capital
16. 16
De-risked New LOM Plan
Key differences from prior study:
Lowered maximum mining rate from 140 to 124 Mt
Reduced operational risks:
› Reduced strip ratio for the first 9 yrs from 4.8:1 to 4.0:1
(deferring 160 Mt of waste)
› Incorporated second feed source from West Detour
Increased plant throughput capacity to 23 Mt (post-2018) from
22.3 Mt (post-2017)
Rationalized capital profile
Added processing of fines
Potential use West Detour pit for waste stockpiles and tailings
deposition
17. 17
LOM Summary
Key Statistics 01/2016
Proven & Probable Reserves (M oz) 1 16.4
Average gold grade (g/t) 0.99
Estimated gold recovery (%) 92
Mine life (years) 23
Average annual gold production (oz) 655,000
Total Site Costs 2 $690/oz
1. Estimated using a gold price of $1,000/oz and a US$/C$ exchange rate of 1.10. Refer to Slide 28 for additional details.
2. Total site costs are reported in per ounce produced. Refer to the section on Non-IFRS Performance Measures on slide 3.
Mining rates peaking at 124 Mt/yr with next 9 yrs averaging 114 Mt/yr
Mill throughput increasing from 56,000 tpd to 63,000 tpd in 2019
West Detour mine life of ~10 yrs
18. 18
617 607
721
655
0
100
200
300
400
500
600
700
2016-18 2019-21 2022-24 LOM
LOM Gold Production Profile
Addition of West Detour
provides second feed
source (pre-stripping in
2018)
Processing of ‘fines’
adds third source of ore
(starting in 2019 at
maximum of 1 Mt/yr)
Average gold production
over next 9 years:
648 k oz
Yearly average gold production (k oz) per period
0.98 g/t 0.89 g/t 1.06 g/t 0.99 g/tGrade
19. 19
19
LOM Operating Costs
1. Includes all site costs including bullion delivery, refining and costs related to agreements with Aboriginal communities.
Yearly Average Cost per Period
2016-18 2019-21 2022-24 LOM
Mining (C$/t mined) 2.74 2.58 2.54 2.76
Processing (C$/t milled) 8.34 7.20 7.19 8.14
G&A(C$/t milled) 2.83 2.45 2.43 2.47
Site Operating Costs1 (C$ M) 529 539 534 512
Higher LOM mining costs than prior study (C$2.76/t vs C$2.60/t)
mined due to lower assumed productivities and increased
operating costs for smaller sized West Detour fleet
~75% of costs in Canadian dollars
UnitCosts
20. 20
Yearly Average per Period (C$M) Total (C$M)
2016-18 2019-21 2022-24 LOM LOM
Capital costs 105 62 28 53 1,2251
LOM Capital Costs
Total 2016-18 capital costs of ~C$314 M, including C$80 M
for West Detour
Total LOM capital of ~C$104 M for West Detour
~60% of capital costs in Canadian dollars
1. Includes closure costs.
21. 21
LOM Economic Analysis1
(in C$)
Yearly Average per Period Total
2016-18 2019-21 2022-24 LOM LOM
Pre-tax cash flow $242 M $278 M $481 M $381 M $8.8 B
NPV 5% (pre-tax) $4.8 B
NPV 5% (after tax) C$3.9 B
Exchange Rate
Gold price
1.10 1.23 1.30 1.40
After Tax NPV 5% (C$ Billion)
$1,000/oz 1.9 2.5 2.9 3.3
$1,100/oz 2.6 3.2 3.6 4.0
$1,200/oz 3.2 3.9 4.2 4.8
$1,300/oz 3.8 4.5 4.9 5.5
$1,400/oz 4.3 5.1 5.6 6.2
1. LT gold price (2018+) and LT exchange rate (2018+).
Increase in $100/oz ≈
Increase C$500 M
After-Tax NPV5%
22. 22
LOM Opportunities
Main opportunities not included in LOM Plan
Mine
Improve productivities and reduce
maintenance costs
Block model performance giving more
ounces
Plant
Bring low grade fines earlier than 2019
Consider reclaim of fines from medium
grade stockpiles
Accelerate mill ramp-up and improve
operating time (> 23 Mt/yr)
Improve gold recovery (>92%)
23. 23
2016 Drilling Program
Zone 58N = 60,000 m
25-metre in-fill program
› Upper 250 metres
› Test continuity
50-metre in-fill program
› Lower 450 metres
› Define extent and tonnage
Additional drilling if positive results
Lower Detour trend = 8,000-10,000 m
Test targets on 25 km trend
Regional = 5,000-7,000 m
Zone 58N - Qtz-tourmaline
stockworks in altered
feldspar porphyry
24. 24
Objectives
Execute at Detour Lake
› Growing cash flows
Disciplined capital allocation:
Balance between internal growth
› Development of Block A
› Exploration of Lower Detour and
large claim block
and debt reduction
Longer term…assess when external
growth opportunities are appropriate
Near-term Strategic Focus
Increase production
Lower costs
Optimize our assets
25. 25
PRODUCTION GROWTH /
DECLINING UNIT COSTS
REALIZE VALUE-ENHANCING
OPPORTUNITIES
GROWING CASH FLOW
A GREAT TIME TO BE A
GOLD PRODUCER!
26. 26
ADDITIONAL
information
2015 Safety Performance
2015 Operational Statistics
LOM Production Plan
Year-End 2015 Reserves and
Resources
Detour Lake & West Detour
Processing of Fines
Exploration Focus: Lower Detour
Benefiting from a Weak $Cdn
Shareholder Information
Analyst Coverage
Management & Directors
Contact Information
27. 27
3.9
2.5 2.3
0
0.5
1
1.5
2
2.5
3
3.5
4
2014 ON
Average2
Total Recordable Injury
Frequency Rate (TRIFR)1
2015 Safety Performance
20152014
1. Total recordable injury frequency rate = Total recordable injuries x 200,000 hours divided by total man hours worked.
2. 2014 Ontario Mining Industry average (source: Workplace Safety North, WSIB).
30. 30
Year-end 2015 Reserves & Resources
Notes:
1. Mineral resources and reserves were
completed by Detour Gold in conformity
with generally accepted definitions and
guidelines given in the Canadian Institute
of Mining, Metallurgy and Petroleum (CIM)
Standards on Mineral Resources and
Mineral Reserves as required by NI 43-
101.
2. Mineral reserves were estimated using a
gold price of $1,000/oz and mineral
resources were estimated using a gold
price of $1,200/oz at a US$/C$ exchange
rate of 1.10.
3. Mineral reserves and resources were
based on a cut-off grade of 0.50 g/t Au.
4. Mineral reserves included an average
mining dilution of 5.3% from 2016 to 2018
and 4% for 2018+, at a diluting grade of
0.20g/t Au. Mining ore loss of 5% also
included.
5. Only Probable LG Fines scheduled in the
mine plan were reported as mineral
reserves. The LG fines reserves were
based on a cut-off grade of 0.40 g/t Au.
6. Mineral resources are reported exclusive
of mineral reserves. Mineral resources
that are not mineral reserves do not have
demonstrated economic viability.
7. Totals may not add due to rounding.
At Dec. 31, 2015
Reserves
Tonnes
(millions)
Grade
(g/t Au)
Contained
Gold Ounces
(000’s oz)
Detour Lake Mine Proven 89.2 1.26 3,603
Probable 351.6 0.95 10,779
Stockpiles 4.8 0.64 98
Total P&P 445.5 1.01 14,480
West Detour Proven 1.8 0.99 56
Probable 47.0 0.97 1,473
Total P&P 48.8 0.98 1,529
LG Fines Probable 20.0 0.60 386
Total P&P 514.3 0.99 16,395
Resources
Detour Lake Mine Measured 17.4 1.33 746
Indicated 66.2 1.00 2,125
M+I 83.6 1.07 2,871
West Detour Measured 0.4 0.85 10
Indicated 36.5 0.86 1,005
M+I 36.9 0.86 1,015
Total M+I 120.5 1.00 3,886
Detour Lake Mine Inferred 33.7 0.81 875
West Detour Inferred 8.6 0.89 246
Total Inferred 42.3 0.82 1,121
31. 31
Detour Lake & West Detour
US$1,000/oz
US$1,200/oz
14.5 Moz
@ 1.01 g/t Au
P+P
1.5 Moz
@ 0.98 g/t Au
P+P
~5.5 km
Phase 1 Pit
1. Includes LG Fines (386,000 oz @ 0.60 g/t Au). Mineral reserves as of December 31, 2015.
Total P+P = 16.4 Moz @ 0.99 g/t Au1
32. 32
Segregation of fines
Gold concentrates in the fine material on the
top portion of the low grade stockpile
Tests validating grade and milling rate
improvement
41% grade improvement (from 0.44 g/t to 0.62 g/t)
25% of fine material displaces fresh feed ore
Incorporated into LOM plan
Up to 1 Mt/yr starting in 2019
Processing of Fines (LG Fines)
Low-grade stockpile
(avg. grade 0.44 g/t)
Natural segregation of fines
from unloading truck
34. 34
Exploration Focus: Lower Detour*
*For 2015 results for holes previously released, refer to long section in press release dated October 20, 2015.
35. 35
Benefiting from a Weak Cdn $
Gold Price in US Dollars
vs Canadian Dollars
$1,372
$1,467
$1,551
$Cdn
Now
Gold Performance
2015 to Date
$Cdn: +13%
$US: -7%
1-Jan-15 31-Dec-15 22-Jan-16
FX rate 1.16 1.38 1.42
$1,182
$1,060
$1,096
$US
36. 36
1. Conversion price for the Notes is $38.50.
2. Approximate cash and short-term investments at December 31, 2015.
Shareholder Information
>80% INSTITUTIONS TOTAL
8.1 M Share options
13.0 M Convertible notes 1
192.1 M FULLY DILUTED
171.0 M Issued & outstanding
Share Structure (03/31/2014) Top Shareholders
10%
C$2.6
6
BILLION
market cap$161.0 MILLION
cash position2
Share Structure (December 31, 2015) Top Shareholders
Blackrock
9% Paulson & Co.
37. 37
Initiating
Research
Firm Analyst Target Price at
January 25, 2016
07.06.11 Haywood Kerry Smith $18.75
07.07.09 Paradigm Don Blyth/Don MacLean $22.50
07.08.07 Raymond James Phil Russo $19.25
07.11.26 National Bank Steve Parsons $17.50
07.12.20 Macquarie Mike Siperco $21.00
08.01.14 Canaccord Rahul Paul $20.00
08.07.14 TD Dan Earle $22.00
08.09.04 RBC Dan Rollins $19.00
08.11.06 BMO NB Brian Quast $16.75
09.06.17 Laurentian Pierre Vaillancourt $17.00
10.05.19 CIBC World Markets Cosmos Chiu $21.00
10.07.22 Credit Suisse Anita Soni $19.50
13.04.16 Scotiabank Trevor Turnbull $19.00
13.08.14 Desjardins Michael Parkin $17.50
13.11.12 Beacon Securities Michael Curran $16.00
13.12.09 GMP Securities Ian Parkinson $13.25
14.02.06 Cormark Securities Richard Gray/Tyron Breytenbach $24.50
14.04.22 Goldman Sachs Andrew Quail $17.00
14.06.17 Dundee Capital Markets Josh Wolfson $22.50
Average target C$19.16
Analyst Coverage (19)
38. 38
Paul Martin
President and CEO
Pierre Beaudoin
COO
James Mavor
CFO
Drew Anwyll
Sr VP Technical Services
Julie Galloway
Sr VP General Counsel &
Corporate Secretary
Derek Teevan
Sr VP Corporate &
Aboriginal Affairs
Jean-François Métail
VP Mineral Resource
Management
Rachel Pineault
VP HR & Aboriginal Affairs
Ruben Wallin
VP Environment &
Sustainability
Charles Hennessey
Mine General Manager
Laurie Gaborit
Director Investor Relations
Alberto Heredia
Controller
Lisa Colnett
Robert E. Doyle
André Falzon
Alex G. Morrison
Jonathan Rubenstein
Graham Wozniak
Ingrid Hibbard
Michael Kenyon
Paul Martin
Management & Directors
Management
Directors
39. 39
Laurie Gaborit
Director Investor Relations
Email: lgaborit@detourgold.com
Phone: 416.304.0581
Paul Martin
President and Chief Executive Officer
Email: pmartin@detourgold.com
Phone: 416.304.0800
www.detourgold.com
Contact Information
