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o c t o b e r / n o v e m b e r 2 0 1 6 www.resourceworld.com 41 TSX:FT | OTCQX: FTMDF fortuneminerals.com Investor Contact: 519-858-8188 Ext. 114 CANADIAN COBALT DEVELOPMENT PROJECT • Rechargeable batteries driving cobalt demand • $115 million invested, positive Feasibility Study, test mined, pilot plants completed, and EA approvals • 1.1 M oz gold reserve & ~12% of global bismuth reserves • Working to secure off-take agreements and financing to start construction FortuneAD-September2016_Layout 1 2016-09-20 2:57 PM Page 1 Detour Gold planning increased gold production by Peter Kennedy DETOUR GOLD CORP. [DGC-TSX] oper- ates the large scale Detour Lake Mine in northern Ontario about 300 km northeast of Timmins. Boasting over 16 million ounces in gold reserves, the mine is expected to produce up to 590,000 ounces of the yellow metal this year at an all-in sustaining cost of between $920 and $980 an ounce. But the company is planning to increase the production rate to over 650,000 ounces annually, a move that would make Detour Lake the largest gold mine in Canada. The Detour Lake open pit mine and West Detour Project are located at the centre of a property that covers 625 km 2 and hosts a former open pit and underground operation which was in production from 1983 to 1999. Gold production resumed in January, 2013, seven years after Detour Gold acquired the property from Pelangio Mines Inc. The company has evaluated a number of growth opportunities. For example, explo- ration work is focused in the Lower Detour area where company has encountered high- grade gold intersections in a zone located within an east-west trending structural break that is located 6 km south of the Detour Lake Mine. It is known as Zone 58N. The company completed a new life- of-mine plan (January 2016) for the mine operation, which includes the develop- ment of West Detour, starting in 2018. It is located less than 1 km west of the Detour Lake pit and contains a mineral reserve of 1.5 million ounces. The mining of 1 million tonnes per year of low-grade stockpiled material, starting in 2019, adds a third source of ore to the mix The new mining plan aims to improve the economics of the project by reducing costs. This will give a boost not only to Detour Gold, but also to Franco Nevada Mining Corp. [FNV-TSX], which owns a 2% net smelter return royalty, covering both the Detour open pit and West Detour locations. Based on current mineral reserves, the Detour Lake operation has a remaining mine life of 23 years, with West Detour having an operating life of 10 years. Annual production has increased from 232,287 ounces in 2013, 456,634 in 2014 to 505,558 in 2015. Aside from improving the economics of the project, Detour Gold has said it wants to reduce its debt load from $680 million when Paul Martin became Chief Executive Officer in February, 2014, to under $300 million. The company has, so far this year, re- purchased $142 million in convertible notes in a bid to reduce the amount due at maturity in November 2017 to $358 million. The notes were sold in December 2010 to finance the development of the Detour Lake Mine. n ONTariO