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CANADA’S NEXT INTERMEDIATE GOLD PRODUCER
Corporate Presentation
August 14, 2013
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Forward Looking Information This 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 2013 guidance for gold production and total cash
costs, reserve and resource estimates, ore grade, expected mine life, average annual gold production, gold recovery, cash operating costs
and other costs, sensitivity to metal prices and other sensitivities, ramp-up of operations, mining rates reaching approximately 200,000 tpd
by year-end 2013, future operating plans, potential expansion opportunities, and plans for organic growth which includes growing mineral
reserves to more than 20 million ounces. Forward-looking statements involve known and unknown risks, uncertainties and other factors
which are beyond Detour Gold’s ability to predict or control and may cause Detour Gold’s 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, 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 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 section entitled “Description of Business - Risk Factors”
in Detour Gold’s 2012 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 capital costs; the
Company’s ability to attract and retain skilled staff; the mine development schedule; sensitivity to metal prices and other sensitivities; the
supply and demand for, and the level and volatility of the price of, gold; timing of the receipt of regulatory and governmental approvals for
development projects and other operations; 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. Detour Gold
undertakes 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. 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-looking statements.
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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.
On September 4, 2012, Detour Gold announced an updated mine production plan for the Detour Lake project. The NI 43-101 compliant
Technical Report for this update was filed on SEDAR on October 18, 2012. The following QPs participated in this update: BBA Inc., under
the direction of André Allaire, Eng., Vice-President, Markets – Mining and Metals and Patrice Live, Eng., Mining Manager; SGS Canada
Inc., under the direction of Michel Dagbert, Eng., Senior Geostatistician and Maxime Dupéré, P.Geo., Senior Geologist; and AMEC
Environment & Infrastructure, a Division of AMEC Americas Limited, David G. Ritchie M.Eng., P.Eng,
Senior Associate Geotechnical Engineer.
Information Containing Estimates of Mineral Reserves and Resources
Note Regarding Certain Measures of Performance This presentation presents estimates of future “cash operating costs per tonne milled”, “cash operating costs per ounce of gold produced”,
“total cash costs per tonne milled” and “total cash costs per ounce of gold produced” which are not recognized financial measures under
GAAP. These non-GAAP financial measures are intended to provide additional information to investors. However, they do not have a
standardized meaning under GAAP and may not be comparable to similar measures presented by other gold producers. The estimates of
future cash operating costs per tonne milled and future cash operating costs per ounce of gold produced include estimated mining,
processing and site administration costs divided by estimated tonnes milled or gold ounces produced, respectively. The estimates of future
total cash costs per tonne milled and future total cash costs per ounce of gold produced include estimated mining, processing, site
administration, royalty and refining costs net of estimated silver by-product credits divided by estimated tonnes milled or gold ounces
produced, respectively. These future estimates are based upon the cash operating costs per tonne milled, the cash operating costs per
ounce of gold produced, the total cash costs per tonne milled and the total cash costs per ounce of gold produced that the Company
expects to incur to mine gold at the Detour Lake mine. Since the Detour Lake mine has not yet reached commercial production, there is no
reconciliation to actual GAAP measures provided as it is not practicable to reconcile these forward-looking non-GAAP financial measures to
the most comparable GAAP measures.
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Focus and Discipline
Leverage to gold price
Optimize operation
Organic growth
Safe jurisdiction
Per Share Value Creation
Free cash flow growth
Limit share dilution
Return on capital
Invest in Detour Gold
Our Vision
Become a leading intermediate gold producer and
premier investment opportunity
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Note: Cash position at June 30, 2013 and share data at August 12, 2013. Conversion price for the
Notes is US$38.50.
Share Capital
FULLY DILUTED
161.7 M
OPTIONS & FN SHARE
COMMITMENTS
10.7 M
CONVERTIBLE
NOTES
13.0 M
ISSUED AND
OUTSTANDING
138.0 M C$1.4 B
C$207 M
TOP SHAREHOLDERS
MARKET CAP
CASH POSITION
PAULSON & CO: 15%
INSTITUTIONS TOTAL: >80%
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Focused on One Core Asset
Detour Lake - Ontario, Canada
Low-risk, safe mining jurisdiction
Large prospective land package of 566 km2 on Abitibi Greenstone Belt
› Detour Lake open pit mine – 15.6 M oz in reserves
› Significant potential to expand mineral resources
› Exploration upside
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PRODUCTION 2013
Record Timing from “Discovery” to Production
Detour Lake in 6 years
ACQUISITION /DISCOVERY
PRE-FEASIBILITY STUDY
FEASIBILITY STUDY & PERMITTING
DEVELOPMENT PRODUCTION
2007 2009 2010 2011-12 2013
From Core to Pour
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Scorecard Highlights
Delivered results in timely manner over last 6 years
Built strong management team with track record of success
Increased mineral resources by 750% since acquisition at <$5/oz
Completed positive economic studies over a 2-year period
Raised over $2.5 billion (equity + debt)
Completed mine construction on time (27 months)
Obtained strong community and Aboriginal support
Started gold production in Q1 2013
Reached commercial production in August 2013 on schedule
Focus Q3 Q4
Strategy: Execution Discipline
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H1 2013
First gold pour in February
Secured $90 million credit facility
Commissioned second production line
25,000 m drilling program targeting high-grade
gold mineralization
Produced 74,738 ounces of gold in H1
H2 2013
Reached commercial production in August
Gold production target of 270,000 ounces for the
year
Year-end mineral resources/reserves update
2013 Objectives
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Focus on health and safety of our employees, the well-being of
our community and the protection of the natural environment
Hiring in the region, giving priority to local Aboriginal communities:
92% of workforce from region
25% are Aboriginals
Scholarship and job training
Supporting local communities
Business opportunities
Participation in municipal development
Corporate philanthropy
NORTHERN
ONTARIO
39%
COCHRANE
24%
COCHRANE
AREA
29%
REST OF
ONTARIO
5%
3% OTHER
Corporate Responsibility
WORKFORCE ORIGIN
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OP reserves (M oz) 15.6
Mill throughput (tpd) 55,000
Strip ratio (waste:ore) 3.7
Gold recoveries 91%
Average grade (g/t) 1.03
Estimated mine life (yrs) 21.5
Avg. production (oz/yr) 657,000
Initial capex (C$ B) 1.5
Sustaining capex (C$ B) 1.2
Detour Lake Mine at a Glance
Gold production started in February 2013
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MAINTENANCE
LABOUR POWER
DIESEL
G&A
ROYALTY+
OTHER
(2% NSR)
CONSUMABLES
29%
22%
18% 12%
8%
5%
6%
Breakdown of 2013-14 TCC
Operating Costs (LOM) C$/t milled C$/t mined C$/oz
Mining costs 11.65 2.49 388
Processing cost 7.83 -- 260
G&A 1.86 -- 62
Cash operating costs 21.34 -- 710
Royalty (2%) and other 1.26 -- 42
Refining 0.12 -- 4
Silver credit (0.20) -- (7)
Total cash costs (TCC) 22.52 -- 749
A 10% change in:
Diesel or power costs = $9/oz change in TCC
Cdn$ FX rate = $63/oz in TCC
Projected LOM Operating Costs
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2013 Ramp Up
Mining
Current stockpiles:
1.8 Mt grading 0.7 g/t
2.4 Mt grading 0.4 g/t
Mining rates to ~200,000 tpd by
year-end
Mining fleet of 20 haul trucks & 5
shovels
Processing Plant
55,000 tpd conventional gravity and
CIP processing plant with two
production lines
Line 1 & 2 in operation
Optimize and improve efficiencies
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PLANT SITE
CAMPBELL
PIT
APPROX. PIT SHELL
AT END OF LOM
CURRENT
PIT SHAPE
MINERALIZED
ZONE
Satellite image dated July 2012
NORTH WASTE
DUMP
Mining Production
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Bench
6252m
Bench
6240m
Grade Control DDH Block model 40x40m drill spacing RC GC 20X10m & 10X10m drill spacing
Block Gold Grade (g/t)
< 0.3
< 0.5
< 0.8
< 2.0
> = 2.0
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2013 Q1 Q2
Ore tonnes mined (Mt) 1.29 2.70
Tonnes milled (Mt) 1.02 2.87
Mill grade (g/t Au) 0.64 0.76
Recovery (%) 80 83
Availability (%) 66 68
Gold produced (oz) (1) 16,841 57,897
Q2 Operation Statistics
(1) Q2 = 44,447 oz poured and 23,189 oz of plant inventory.
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2013 Ramp-up Guidance
2013 revised ramp-up guidance
Total gold production of 270,000 oz
Post commercial production:
Total cash costs of US$1,100/oz
Sustaining capital: C$180 M
(C$112 M incurred up to June 30)
Commercial production reached on
Aug. 12 (to be declared on Sept. 1)
Note: Following the post ramp-up phase at Detour
Lake, both productivity and production are to
increase and drive operating costs down.
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Conventional Milling Process
Primary Crusher 90,000 tpd
Mine Trucks
Secondary Crushers (2) 67,000 tpd
Pebble Crushers (2) 73,000 tpd
To Market
Gold Doré Bars
Gold Furnace
Gold Electrowinning
Carbon Stripping
To Gravity Circuit
To Gravity Circuit
Stockpile SAG Mills (2) 55,000 tpd
Ball Mills (2) 55,000 tpd
CIP
Leach
Tailings
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Grow reserve base to +20 M oz
Reserve/resource update for
Detour Lake mine
Evaluate Detour Lake mine
expansion and Block A
Large prospective land position of
630 km2
Tested gold targets on structures
south of Detour Lake: 25,000 m
completed (all results received)
Inferred M&I P&P
10M oz
20M oz
30M oz
15.6 14.9
11.4
8.8
Organic Growth Opportunities
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*Note: Excludes drilling around Detour Lake and M zone (Block A).
25,000 m in 2013
15.6 M oz in Reserves
Organic Growth Opportunities
630 km2
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Near-term objectives (1-3 years):
Detour Lake reserve/resource update (open pit west expansion)
Evaluation of potential expansion options
Organic Growth Opportunities
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Organic Growth Opportunities
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Focus and Discipline
Leverage to gold price
Optimize operation
Organic growth
Safe jurisdiction
Per Share Value Creation
Free cash flow growth
Limit share dilution
Return on capital
Invest in Detour Gold
Our Vision
Become a leading intermediate gold producer and
premier investment opportunity
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ADDITIONAL INFORMATION
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Detour Lake Profile Detour Lake
Sept. 2012
Mine Plan(3)
Gold price (US$/oz) (1) 1,200
Foreign exchange rate (US$/Cdn$) 1.00
Assumptions Fuel price (US$/barrel) 100
Income/mining tax rate (%) 25/10
Net Smelter Royalty (%) 2
Ore milled (Mt) 470.0
Waste mined (Mt) (4) 1,734
Mine Strip ratio (waste:ore) 3.7
Parameters Avg. gold grade (g/t) 1.03
Total contained gold (M oz) 15.6
Estimated gold recovery (%) 91.0
Total recovered gold (M oz) 14.1
Mine life (years) 21.5
Avg. annual gold production (oz) 657,000
1. US$1,600/oz for 2013, US$1,500/oz for 2014, and US$1,400/oz for 2015.
2. Press release Jan. 31, 2011 with Technical Report dated Mar. 15, 2011.
3. Press release Sept. 4, 2012 with Technical Report dated Oct. 18, 2012.
4. Includes low-grade stockpile.
1.0 g/t Au
0.5 - 1.0 g/t Au
<0.5 g/t Au
20,600E
16,500E
700 m
Open pit
@ 0.5 g/t cut-off
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Gold Production/Cost/Grade Profile
Note: Excludes stripping adjustments.
800
700
600
500
400
300
200
100
0
Gold Production (‘000 oz)
LOM Avg. C$749/oz
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0
1.8
Grade (g/t Au)
LOM Avg. 657,000 oz/yr
900
850
800
750
700
650
600
550
Total Cash Costs (C$/oz)
950
1000 900
Based on September 2012 Mine Production Plan
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@ US$850/oz Tonnes
(millions)
Grade
(g/t)
Contained Gold
(‘000 oz)
Reserves (1)
Proven 101.6 1.29 4,222
Probable 368.4 0.96 11,351
P&P 470.0 1.03 15,573
Resources (2)
Measured 124.5 1.36 5,424
Indicated 554.3 1.00 17,836
M&I 678.8 1.07 23,261
Inferred 208.5 0.86 5,785
1. After a 95% mining recovery rate; Mining dilution factor of 15.5%.
2. Inclusive of mineral reserves.
Detour Lake Reserves & Resources
As at December 31, 2011
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2012 completed DH
Historical DH
Block A near-surface resource
Detour Lake
2011 year-end reserves = 15.6 M oz DH included in 2011 year-end reserves
DH not included in 2011 year-end reserves
Detour Lake & Block A
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Gerald Panneton
Founder, President & CEO
Michael Kenyon
Executive Chairman
Paul Martin CFO
Pierre Beaudoin Chief Operating Officer
Julie Galloway Sr VP General Counsel &
Corporate Secretary
Derek Teevan
Sr VP Corporate &
Aboriginal Affairs
Pat Donovan VP Corporate Development
James Mavor
VP Finance
Rachel Pineault VP HR & Aboriginal Affairs
James Robertson
VP Environment &
Sustainability
Eric Josipovic Controller
Drew Anwyll MGM/Director of Operations
Andrew Croal
Director Technical Services
Laurie Gaborit Director Investor Relations
Jean-Francois Metail
Director Reserves and Resources
Charles Hennessey
Deputy General Manager/Process
Plant Manager
Patrik Gillerstedt Mine Manager
Joshua Hurrell Chief Geologist
Bill Snelling
Director Corporate Systems & Controls
Rickardo Welyhorski Director Mineral Processing
Mike Papadakis Process Plant Manager
Peter Crossgrove
Louis Dionne
Robert E. Doyle
André Falzon
Gerald Panneton
Jonathan Rubenstein
Graham Wozniak
Ingrid Hibbard
Michael Kenyon
Alex G. Morrison
Management & Directors Management
Directors
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Gerald Panneton President & CEO
Email: [email protected]
Phone: 416.304.0800
Laurie Gaborit Director Investor Relations
Email: [email protected]
Phone: 416.304.0800
www.detourgold.com
Contact Information
