Detour Gold lifts 2017 guidance, places West Detour development on ice

VANCOUVER (miningweekly.com) – Midtier miner Detour Gold has deferred construction of its West Detour pit owing to a permitting delay.

The Toronto-headquartered company said it had filed an environmental study report (ESR) with provincial authorities on Monday; however, one of its Aboriginal partners had made a request for a federal environmental assessment process, which is much more complicated and takes longer to complete.

Detour stated that, despite its belief that the ESR meets both the provincial and federal environmental standards, the provincial process typically takes one year to complete compared with two to three years for the federal process. The company said it had filed the ESR despite not yet having the support of all Aboriginal partners.

As a result, the TSX-listed company is preparing an alternative mine plan and will be filing a new life-of-mine plan and associated compliant technical report by the end of March.

"Although we are disappointed with the permitting delay for West Detour, having the benefit of a large reserve base allows us to manage this schedule change. The company is currently in discussions with the federal authorities and looks forward to concluding this matter shortly,” president and CEO Paul Martin said in a statement.

Detour also announced 2016 gold output of 537 765 oz, which was in line with its revised guidance of between 525 000 oz and 545 000 oz at an all-in sustaining cost (AISC) of $1 005/oz sold, which was also below the top end of guidance at $1 020/oz.

For 2017, the company forecast higher gold output at between 550 000 oz and 600 000 oz, with AISC slightly higher than in 2016 at between $1 025/oz and $1 125/oz.

The company’s 2018 production outlook remained unchanged at between 600 000 oz and 670 000 oz, but Detour expects production in 2019 and 2020 to be lower owing to the delay at West Detour.