Vancouver — Detour Gold (DGC-T, DRGDF-O) has reported a whopping 243% increase in measured and indicated resources at its Detour Lake gold project in northeastern Ontario’s Abitibi greenstone belt.
More than 49,000 metres of additional drill data have been incorporated into the estimate since the last resource calculation for Detour Lake in late 2006. The new measured and indicated resource stands at 89.9 million tonnes of 1.67 grams gold per tonne for 4.83 million contained ounces using US$575 per oz. gold. The grade was capped at 20 grams gold.
Inferred resources are pegged at 63.3 million tonnes grading 1.49 gram gold for another 3 million contained ounces — up about 50% from last year’s estimate.
Aside from the additional drill data, Detour attributes the resource boost to the discovery of additional mineralization in the hangingwall (north of the 200-metre-wide mineralized corridor) and the expansion of the modelled pit shell based on a higher gold price (US$575 per oz. versus US$450).
Detour Gold’s resource study examines an open-pit operation with a production rate of about 20,000 tonnes per day. The pit is modelled to have a 6.1:1 strip ratio and a cutoff grade of 0.64 gram gold per tonne.
A feasibility study on the project is under way, and is expected to be complete by the end of 2008.
The project area includes the past-producing Detour Lake mine operated by Placer Dome, now part of Barrick Gold (ABX-T, ABX-N), from 1983-1999. The mine produced about 1.8 million oz. gold.
Detour Gold purchased the project from Pelangio Mines (PLG-T, PLGOF-O) in early 2007, after completing its initial public offering, for $5 million plus 20 million shares.
The company also has a 50% stake in the adjacent Block A ground — a joint venture with Trade Winds Ventures (twd-v, twdif-o). Trade Winds is planning to spin out all its Detour Lake-area assets into a new public company.
Be the first to comment on "Detour Gold boosts resource"