detour gold
on february 18, 2013, detour gold corporation (tsx: dgc) poured its first four gold bars for approximately 2, 000 ounces of gold at its detour lake mine .
detour gold is an intermediate gold producer in canada that holds a 100% interest in the detour lake mine, a long life large - scale open pit operation .
detour gold is an intermediate gold producer in canada that holds a 100% interest in the detour lake mine, a long life large - scale open pit operation. detour gold' s shares trade on the toronto stock exchange under the trading symbol dgc .
construction is potentially months away from starting on canada’s largest undeveloped gold resource as detour gold corporation gears up for its detour lake open pit mine, 180 kilometres northeast of timmins .
detour gold’s life of mine plan includes the development of the west detour project, adjacent to the detour lake main pit. the permitting is currently underway with the development of the west detour pit scheduled for 2025 and the north pit for 2026 .
detour gold corporation owns and operates the detour lake mine, a long life large - scale open pit operation in the mining - friendly jurisdiction of northern ontario. currently, detour lake is one of the largest gold producing mines in canada with reserves of nearly 16 million ounces of gold .
detour gold continues to evaluate growth opportunities on its large prospective property. exploration work continues to advance zone 58n, a high grade gold deposit located approximately 6 kilometres south of the detour lake processing plant .
detour gold (dgc - t) and its shareholders have something to cheer about, as the junior gold explorer has graduated to producer after completing its first gold pour at the large detour lake mine in northeastern ontario, a goal the company has ...
detour gold corp is a canadian gold producer engaged in the acquisition, exploration, development and operation of mineral property interests. the company' s primary asset is its wholly - owned detour lake mine located in northeastern ontario .
detour gold is led by a proven and experienced management team and board of directors to implement its strategic plans with the goal of becoming a leading intermediate gold producer .
cochrane, ontario — last year detour gold’s (tsx: dgc) detour lake mine in northeastern ontario was the second - largest gold producer in canada. it’s now on track to take the top spot. detour lake — a large - scale, open - pit operation with a ...
toronto, ontario - - (marketwired - jan. 30, 2017) - detour gold corporation (tsx: dgc) (
detour gold
or the
company
) today announces fourth quarter and full year 2016 operating results and 2017 guidance for its detour lake mine located in northeastern ontario .
from the late - nineties until 2002 the price of gold stumbled along under $ 300. exploration on the detour lake property was limited at the time and the market in general was disinterested in gold plays. mines managed, however, to keep the detour lake story alive as the gold bull market slowly took hold .
year - end 2016 proven and probable reserves of 16. 5 million ounces (refer to march 22, 2017 news release entitled
detour gold provides updated life of mine plan for detour lake
.
pelangio said yesterday it will establish a new company to own 19 million shares in detour gold, which is developing the detour lake prospect in ontario ,
and such other assets as may be required to maintain operations .
pelangio would retain its properties in ghana, along with one million shares of detour gold
for investment purposes .
detour gold corporation (tsx: dgc) (
detour gold
or the
company
) reports the details of its updated life of mine plan (
2018 lom plan
) for its detour lake operation located in northeastern ontario. the 2018 lom plan, in conjunction with a stronger leadership team dedicated to implementing several key operational improvement initiatives, represents an intensified commitment to optimize the detour lake operation .
detour gold corporation (tsx: dgc) (
detour gold
or the
company
) plans to release its second quarter 2018 operating and financial results after market close on wednesday, july 25, 2018, followed by a conference call and webcast the following morning .
detour gold corporation (tsx: dgc) (
detour gold
or the
company
) plans to release its updated life of mine plan results for detour lake after market close on wednesday, june 27, 2018. a conference call will be held the following day at 9: 00 am e. t. followed by a briefing for analysts and institutional investors .
last october, harte gold corp. began a transition from junior exploration company to gold producer. but harte’s yellow brick road ...
toronto, ontario - - (marketwired - jan. 4, 2017) - detour gold corporation (tsx: dgc) (
detour gold
or the
company
) has been notified of an unsolicited mini - tender offer made by trc capital corporation (
trc capital
) to purchase up to 5, 000, 000 detour gold common shares, or approximately 2. 86 percent of the company' s outstanding common shares, at a price of cdn $ 15. 25 per share. detour gold does not endorse this unsolicited mini - tender offer and recommends that shareholders do not tender their shares in response to the offer .
detour gold is committed to high standards of corporate governance and ethical practices to direct and manage the affairs of the corporation and protect shareholder value over the long term .
pelangio bought the lands of detour lake from placer dome in 1998, paying just $ 2. 3 - million at a time when gold prices were plummeting. detour gold paid 32 times that, or $ 75 - million, eight years later, when gold prices started rebounding but were still only a fraction of today' s price above $ 1, 700 (u. s .) an ounce .
detour gold has a 100% interest in the detour lake mine, a large - scale open pit mine in northeastern ontario, a region with a long mining history, experienced labour force, good infrastructure and a government that recognizes the value of the mining sector .
probe metals continues to intersect significant gold mineralization in expansion drilling at val - d’or east, including 4. 1 g / t gold over 15. 4 metres
chip samples revealed gold at grades up to 39. 2 grams per ton .
the total exploration budget for the detour lake property is approximately $ 6 million, of which $ 4 million is non - sustaining expenditures for definition drilling of zone 58n (lower detour), an underground high grade gold target located 6 kilometers south of the detour lake processing plant. the balance is considered sustaining and will be used to explore other targets on the property .
detour gold is in a position to deliver superior returns with its growing cash flow profile, organic growth initiatives, and significant potential for further exploration discoveries on its large land package .
pelangio mines inc. proposes to spin off most of its 49. 4 per cent stake in detour gold corp. , seeking to raise the value the stock market places on its assets .
in march 2009, the merger was completed with pdx shareholders receiving 0. 2571 shares of detour for each share of pdx they held prior to the merger (i. e. 19 million detour shares distributed pro rata to approx. 74 million pdx shares). most importantly, pdx shareholders received detour shares directly on a tax deferred basis, which would not have been the case had pdx either sold detour shares into the market and paid shareholders cash, or distributed the detour shares to shareholders as a dividend in kind .
gold production totaled 131, 418 ounces, in line with projections for the first quarter .
detour gold' s guidance for 2017 is between 550, 000 and 600, 000 ounces of gold at total cash costs of $ 690 to $ 750 per ounce sold. all - in sustaining costs are expected to be between $ 1, 025 and $ 1, 125 per ounce sold .
the company is expected to incur non - sustaining expenditures of $ 5 million for the development of west detour .
in january 2007, mines sold the detour lake deposit to detour gold, with mr. panneton at the helm, for $ 5 million and 20 million common shares (valued at $ 3. 50 / share), at the time a 50% interest in detour. importantly, detour had a very compact, 40 million common share capital structure - perfect for raising the funds needed to complete exploration and move towards feasibility and development. the detour lake deposit, which had been purchased for $ 1. 5 million of borrowed money, was now valued at $ 75 million - with the upside potential of 20 million shares still to be realized .
pdx and detour realized in early 2009 that the most accretive solution for both parties would be to merge the two companies. pdx' s shareholders would no longer suffer the discount on the market value of pdx' s detour shareholding, and would also receive a pro rata apportionment of detour shares on a tax deferred basis. detour would reduce the equity overhang represented by pdx' s control position, which would likely simplify further financing and strategic considerations .
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toronto, ontario - - (marketwired - march 22, 2017) - detour gold corporation (tsx: dgc) (
detour gold
or the
company
) reports its financial results for the fourth quarter and full - year 2016. the company previously released its fourth quarter and full - year 2016 operational results on january 30, 2017. all amounts are in u. s. dollars unless otherwise indicated .
the detour lake mine marks the strongest sign yet of a trend toward massive, open - pit gold mining in canada on a scale more commonly seen in desert geographies in nevada, chile or africa .
gold production of 143, 512 ounces in the fourth quarter bringing total gold production to 537, 765 ounces for the year, in line with revised guidance of 525, 000 to 545, 000 ounces .
enter the hunter dickinson group (
hdi
) and gerald panneton. mr. panneton had years of experience working on late stage exploration and feasibility projects for barrick gold. more importantly, he immediately saw the vast unrealized potential that the detour lake deposit still held, well beyond the approximately 1. 7 million ounce resource already defined. his determination and vision was to reap tremendous rewards for both detour gold and pelangio mines shareholders over the ensuing years .
after the nearly unprecedented market crisis of late 2008, pdx' s management reviewed its options in respect of the 19 million shares of detour that pdx held at the time. detour' s share price had also been detrimentally affected by the market downturn and pdx' s shares once again traded at a discount to the market value of the detour shares that it held .
the objective of the spinoff is to relieve what pelangio regards as a stock - market discount on both its detour stake and its other properties, which feature 290 square kilometres adjacent to anglogold ashanti' s obuasi gold mine in ghana .
toronto, ontario - - (marketwired - april 27, 2017) - detour gold corporation (tsx: dgc) (
detour gold
or the
company
) reports its operational and financial results for the first quarter of 2017. this release should be read in conjunction with the company' s first quarter 2017 financial statements and md & a on the company' s website or on sedar. all amounts are in u. s. dollars unless otherwise indicated .
“this is a very, very aggressive schedule, but we’ve hit all the targets thus far, ” says derek teevan, spokesperson for detour gold, which has completed 400, 000 metres of drilling in the three years since acquiring the property .
detour immediately began an extensive drill program on the detour lake property and raised the profile of the deposit immensely. by june 2008, mines' 20 million detour shares had increased from the ipo value of $ 70 million to over $ 500 million and detour had more than doubled the total resources on the deposit, from 3. 4 million ounces to 7. 8 million ounces. meanwhile, mines' market capitalization soared from $ 70 million to over $ 400 million, with the stock price going from $ 1 to $ 5. 50 .
break - even for detour lake is $ 600 an ounce and “everything so far has been calculated at $ 850, ” said panneton .
according to trc capital' s offer documents, detour gold shareholders who have already tendered their shares may withdraw their shares at any time before 12: 01 am (toronto time) on january 27, 2017 by following the procedures described in the offer documents .
news update on may 28, 2002, pelangio mines inc. announced that it has acquired an additional 17 square miles by staking in the detour lake area of northeastern ontario. these claims were staked to cover prospective geology proximal to or along the extensions of known gold - bearing structures. the company now controls a total of approximately 76 square miles in one of the most prospective gold projects in the abitibi greenstone belt. the abitibi greenstone belt has produced approximately 65% of canada' s gold and a substantial portion of its base metals from a series of world class gold and base metals mines within established mining camps .
there was a decided lack of excitement about the detour lake property in 2006. the former placer dome property, 250 kilometres northeast of timmins, had produced 1. 8 million ounces of gold between 1983 and 1999 and was owned by pelangio mines. the property had a firm believer in company president ingrid hibbard and the price of gold was on the upswing, but nothing much was happening .
average realized price is calculated as metal sales per the statement of comprehensive loss and includes realized gains and losses on gold forwards, less silver sales. average realized margin represents average realized price per gold ounce sold less total cash costs per ounce sold .
the detour lake mine in the cochrane, ont. , area marks the strongest sign yet of a trend toward massive, open - pit gold mining in canada on a scale more commonly seen in desert geographies in nevada or chile or on the african continent. other examples include osisko mining corp. and its malartic project in quebec and san gold corp.' s rice lake mine in manitoba .
the company announced today an updated life of mine plan (including year - end 2016 mineral resource and reserve estimates) for its detour lake operation .
lupaka gold is a peru - focused gold developer focused on advancing its 100% owned invicta gold project. the invicta project hosts a high grade gold - copper underground mine located 120 kilometers north of lima, peru. the company plans to commence production at invicta and process up to 350 tonnes per day of high grade material. lupaka has outlined a three - phase development and growth plan to ramp up production and utilize free cash flow to expand operations and develop its portfolio of projects... view profile
please visit the careers section of our website. all of our job opportunities are posted there. if you see something that appeals to you, use the button to apply online. we don' t accept resumes via email, unfortunately. thanks for your interest in detour gold !
“they had gold mineralization everywhere on the project. they had a corridor 300 metres wide by three kilometres long. they had drilled 20, 000 metres, say 100 holes here, here, here, and here, but never put everything together. when i looked at the sections with the placer dome work from before, i said there’s gold here, gold there, gold there, but not enough drilling to demonstrate the continuity of the deposit. after i looked at that, i said wait a minute. that’s spectacular. if i connect all the gold together, it could be very big. i saw that in one day. ”
detour gold reports total cash costs 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. production costs include the costs associated with providing the royalty in kind ounces .
detour gold' s annual general meeting of shareholders will be held on may 4, 2017 at 2: 00 pm in the st. andrew' s hall (27 th floor) of the st. andrew' s club & conference centre at 150 king street west in toronto .
average realized price is calculated as metal sales per the md & a statement of comprehensive loss and includes realized gains and losses on gold forwards, less silver sales. average realized margin represents average realized price per gold ounce sold less total cash costs per ounce sold .
shareholders are cautioned that the mini - tender offer has been made at a price below market, representing a discount of 4. 69 percent to the closing price of detour gold' s common shares on december 23, 2016, the last trading day before the mini - tender offer was commenced .
detour gold' s annual general and special meeting of shareholders will be held on may 4, 2017 at 2: 00 pm in the st. andrew' s hall (27 th floor) of the st. andrew' s club & conference centre at 150 king street west in toronto .
analyst andrew mikitchook with bmo capital markets reported his findings from a recent site visit to the yukon' s likely next operating gold mine .
jack chan' s updated charts for the precious metals markets include a look at how the canadian dollar relates to gold and silver prices .
since acquiring the detour lake project three years ago, the company has conducted 400, 000 metres of drilling on the property in advance of an open pit operation .
the company is also working towards completing additional impact benefit agreements with local aboriginal communities, including the wahgoshig first nation, with whom detour signed an agreement in principle in mid - may. other communities include the the taykwa tagamou nation and the moose cree first nation, which signed memorandums of understanding with detour in the fall of 2009 .
gold production is expected to be between 550, 000 and 600, 000 ounces for 2017 with production being the lowest in the first quarter .
detour shares some of the industry’s concerns surrounding the cost of power in the province, says teevan, as energy shapes up to be one of the largest costs facing the project .
total cash costs is a common financial performance measure in the gold mining industry but with no standard meaning under ifrs. detour gold reports total cash costs on a sales basis. the company believes that, in addition to conventional measures prepared in accordance with ifrs, such as sales, certain investors use this information to evaluate the company' s performance and ability to generate operating earnings and cash flow from its mining operations. management uses this metric as an important tool to monitor operating cost performance .
hdi and mr. panneton conducted intensive due diligence on the property during 2006, reviewing thousands of metres of historical surface and underground drilling by placer dome and mines. in september 2006, based on hdi and mr. panneton' s recalculations, mines announced a national instrument 43 - 101 compliant mineral resource estimate for the detour lake property including 20, 045, 000 tonnes grading 2. 14 g / t, containing 1, 379, 500 ounces of gold, and an inferred mineral resource of 35, 435, 500 tonnes grading 1. 8 g / t, containing 2, 035, 650 ounces of gold. the detour lake mine had a life once more .
with $ 260 million in projected annual operating costs, the mine contains proven and provable open pit reserves of 11. 4 million ounces. this ranks it sixth among north america’s top 10 largest gold reserves and translates to a 16 - year mine life, with average annual gold production of 649, 000 ounces .
panneton had worked for placer dome out of val d’or from 1989 to 1993, but had never visited detour lake. from what he knew, it had a reputation as a dog .
revenues for the full year 2016 were $ 658. 3 million, 17% higher than in the previous year as a result of higher volume of gold ounces sold and a 4% increase in the average realized gold price 1 received. the company' s gold sales totaled 527, 727 ounces at an average realized price of $ 1, 221 per ounce compared to 486, 243 ounces at an average realized price 1 of $ 1, 175 per ounce for 2015 .
fourth quarter revenues for 2016 were $ 176. 6 million compared to $ 145. 7 million in the prior year period. the company' s gold sales increased to 144, 668 ounces in the fourth quarter of 2016 compared to 132, 209 ounces in the prior year period, mainly due to the timing of gold pours and shipments. the average realized gold price 1 increased by $ 108 per ounce, from $ 1, 102 per ounce to $ 1, 210 per ounce .
pelangio' s strategy is to acquire and explore camp - sized land packages in world - class gold belts, while using innovative corporate restructuring to maximize shareholder value .
average realized price and average realized margin per ounce sold are used by management and investors use these measures to better understand the gold price and margin realized throughout a period .
although pelangio mines inc. is a junior mining company, they still can attract newmont mining corp. of canada ltd. as their joint venture partner. it reflects the potential growth in detour lake property
revenues for the first quarter were $ 163. 7 million. the company sold 134, 213 ounces of gold at an average realized price of $ 1, 216 per ounce .
this press release should be read in conjunction with detour gold' s audited consolidated financial statements and related notes and schedules for the year ended december 31, 2016, and related management' s discussion and analysis (
md & a
), which are available from the company' s website (urltoken) under the investor centre section and on sedar (www. sedar. com) .
projected capital expenditures for 2017 remain as previously stated at approximately $ 160 to $ 180 million, including $ 14 million of capitalized stripping and $ 5 million of non - sustaining expenditures for the development of west detour .
at the end of december, run - of - mine stockpiles stood at 7. 0 mt grading 0. 65 g / t (approximately 145, 000 contained gold ounces) .
while pelangio' s management team has the geological, corporate and legal abilities to plan and execute various strategies, depending on the circumstance, the story of detour lake provides a good case study of pelangio' s capabilities .
during 2016, the company entered into a number of gold, foreign exchange and diesel derivative contracts. the total realized loss on these derivative instruments for 2016 was $ 14. 5 million .
today, of course, it’s a different story. detour lake is a beehive of activity. current owner detour gold has a reserve of 15 million ounces and is spending $ 1. 2 billion to develop a mine which will produce 650, 000 ounces of gold per year over a 21 - year mine life. what happened in 2006 to alter the trajectory of this ontario gold property makes for a fascinating case study on the magic that happens when experience, entrepreneurship and the economic environment are in alignment. geologist gerald panneton had just ended a 12 - year career with barrick gold and had been hired as president and ceo of continental minerals, a hunter dickenson company with a porphyry copper project in tibet. “a former director of pelangio saw me at a presentation of continental minerals, ” recalled panneton. “after the presentation, he came up to me and asked me ‘where are you from? i never saw you before. ’ i was with barrick for 12 years. i wasn’t a front man. i was a geologist. i went out to the field and i came back to the office, so nobody knew me. no bankers, no analysts. he said, ‘i think i have a project for you. ’”
2 based on property, plant and equipment additions per the cash flow statement, which includes deferred stripping. non - sustaining capital expenditures included in the cash flow statement have been excluded. non - sustaining capital expenditures in 2016 relate to west detour .
panneton didn’t waste any time. he rolled the property into a new company to give it the fresh start it needed, raised $ 10 million at the denver gold show in september 2006 and did an ipo at $ 3. 50. an aggressive drilling program confirmed the continuity of the deposit, the price of gold cooperated and a feasibility study in may 2010 gave credence to panneton’s assessment of the property four years earlier .
on may 16, 2002, pelangio mines inc. announced that it has completed the purchase of all of the property interests of newmont mining corporation of canada (
newmont
, formerly franco - nevada mining corporation) in the detour lake area of northeastern ontario (the
detour lake property
) by paying $ 1, 500, 000, issuing 1, 250, 000 common shares of pelangio at $ 0. 20 per share, and allowing newmont to retain a 2% net smelter royalty. pelangio also announced the issuance of 10, 250, 000 shares at $ 0. 20 for $ 2, 050, 000. on may 13, 2002, pelangio mines inc. announced that it has optioned its birch lake gold property to mosquito consolidated gold mines ltd. the birch lake property is located within the birch - uchi greenstone belt in northwestern ontario, approximately 120 kilometers northeast of the town of red lake .
completed in mid - may, the mine’s feasibility study uses a price of $ 850 per ounce of gold for its base case, and calculates that total operating costs will reach an average of $ 454 per ounce .
they really spearheaded this movement of going into old camps where you had traditionally high - grade narrow - vein type mines, and looking at the bigger picture and seeing whether or not that can be developed into a very large, open - pit style low - grade deposit ,
said mike white, chief executive officer of ibk capital, the boutique investment bank that helped broker the consolidation of detour gold' s exploration properties for their former owner, pelangio mines inc .
problematically, for tax and market - related reasons, mines traded at a significant discount to the market value of its 20 million detour shares, not to mention the value of the company' s highly prospective properties in ghana, west africa. management took action .
another important lesson he learned was to never skip steps. “when you fast track a project without jumping steps and do all your homework, ” he said, “you can be very successful. we did it at tulawaki and we’re doing it at detour lake. ”
5 includes the sum of sustaining exploration and evaluation expense, which includes share - based compensation, per the statement of comprehensive earnings (loss), excluding depreciation within those figures. non - sustaining exploration and evaluation expense, primarily relate to costs associated with west detour .
pelangio mines (
mines
, pelangio exploration' s predecessor) took steps to acquire the detour lake deposit from placer dome in 1998. at the time, placer had decided to close operations at the deposit, as head grades were not sufficient to justify an underground mining operation. additionally, the price of gold was in the sub - $ 300 range at the time. mines already held a significant area around the mine, so the mine property was a good addition to its land position .
by 2010, pelangio' s early shareholders had realized extraordinary returns. a purchaser of pelangio mines inc. shares in january 2004 might have paid $ 0. 10 per share. by late 2010, with detour gold at $ 30 and pelangio exploration at $ 1. 00, those original shares would have been worth $ 8. 70, a remarkable 8600% return on the initial investment. those returns illustrate pelangio' s goal of generating wealth for its shareholders via both the drill bit and intelligent corporate restructuring .
troilus gold intersects 1. 77g / t aueq over 40 metres and 1. 36 g / t aueq over 70 metres below z87 open pit on troilus property, quebec; expands 30, 000 metre drill program to 35, 000 metres
as at march 31, 2017, the company had 90, 000 ounces of zero - cost collars to protect its gold sales from april to december 2017. the collars have a range of $ 1, 200 to $ 1, 330 per ounce .
subsequent to year - end, the company entered into 90, 000 ounces of zero - cost collars to protect its gold sales from april to december 2017. the collars have a range of $ 1, 200 to $ 1, 330 per ounce .
at those prices, and cash costs of as little as $ 710 per ounce, detour will clear about $ 2 - billion before taxes in its first five years in operation. six years after it acquired the property, it has a market capitalization of $ 3 - billion... view full article
both head grade and gold recovery are expected to improve during the second half of the year. the installation of a lead nitrate and oxygen control system to assist with improving recoveries is expected to be completed in the second quarter and commissioned in the third quarter .
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 above), share - based compensation, corporate general and administrative expense, exploration and evaluation expenses that are sustaining in nature, reclamation cost accretion, 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 .
based on property, plant and equipment additions per the cash flow statement, which includes deferred stripping. non - sustaining capital expenditures included in the cash flow statement have been excluded. sustaining capital expenditures includes the value of fully commissioned assets with deferred payment terms. non - sustaining capital expenditures primarily relate to west detour .
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. other companies may calculate this measure differently .
the detour lake operation is forecast to process 21 to 22 mt of ore in 2017. head grades are expected improve after the first quarter. the company does not anticipate processing fines during the year and will continue to engineer its low - grade stockpiles (0. 4 - 0. 5 g / t) for future use .
the company believes this measure more fully defines the total costs associated with producing gold. the company calculates aisc as the sum of total cash costs (as described above), 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 gold ounces sold to arrive at a per ounce figure .
on april 30, 2002, pelangio mines inc. reported that it is in negotiations to raise up to $ 2, 000, 000 by way of private placement of common shares at an issue price of $ 0. 20 per share. it is currently anticipated that the proceeds will be used for strategic property acquisitions in the detour lake area and for working capital .
the spin - off was designed to reduce the discount on mines' market cap relative to its holding of detour shares, and to gain further exposure and market value for the obuasi property in ghana. unfortunately, the credit crisis of fall 2008 affected equity markets and the mining industry as a whole and required further strategic corporate restructuring by pdx / pelangio' s board and management .
experience in the field over a 25 - year career in gold exploration played a critical role in arming panneton with the knowledge to distinguish between a tired old dog that nobody wanted and a potential gold mine. born in trois rivieres, quebec, panneton earned an undergraduate degree in geology at the université de montreal and a masters in geology at mcgill university. he began his career as project geologist for sulpetro andthe vior - mazarin group in the abitibi greenstone belt from 1985 to 1989 and worked for placer dome from 1989 to 1993. he then joined barrick to head up its canadian exploration team, eventually serving as director of advanced projects and evaluation for the company’s exploration and corporate development group .
the gold price in the international market has been constantly increased from us $ 260 / oz to us $ 300 / oz in the past six months. it will help pelangio mines inc. to increase the business opportunities with those major companies. also, it will attract more investors who are favourable to discover some good potential junior mining companies like pelangio mines inc .
the company has included certain financial performance measures with no standard meaning under international financial reporting standards (
ifrs
): total cash costs, all - in sustaining costs, average realized gold price and adjusted net earnings (loss) in this news release. refer to non - ifrs financial performance measures in the company' s 2016 md & a for further information .
with a veteran in - house team of investment, mining and legal professionals, peartree securities has a strong network of canadian issuers, institutional and strategic investors including major gold producers and private equity funds. peartree’s large philanthropic subscriber base, in addition to our expertise in the resource sector, has enabled us to become the leading provider of flow through financings for mining companies .
2017 aisc (1) are expected to range from $ 1, 025 to $ 1, 125 per ounce sold, with total cash costs from $ 690 to $ 750 per ounce sold. due to the variability of gold production and the timing of capital expenditures, the company expects that the first quarter actual all - in sustaining costs will be significantly above the yearly guidance .
from 2003 - 2006, mines began the process of re - envisioning the detour lake deposit. eric kallio, p. geo, a geological consultant working for mines at the time was the catalyst. what had been a small - near surface pit with a largely underground operation became an audacious open pit mining plan comprising two significantly larger low - grade open pits, with room for expansion in all directions with further drilling and a steadily increasing gold price. mines had two choices: (i) raise the significant funds to complete infill drilling of the deposit and move towards development and production, with the significant share dilution, costs and risks those actions entail, or (ii) find a new company, expert team and leader to make the vision a reality. mines' skill was in property acquisition and exploration, so the choice was easy .
sustaining capital expenditures for 2016 are estimated at approximately $ 100 million, at the low end of the revised guidance of $ 100 and $ 110 million, and include approximately $ 16 million for capital purchases originally planned in 2017 - 18 (including three cat795 trucks, bringing the hauling fleet to 28 trucks at year - end). capitalized stripping costs totaled approximately $ 3 million. the company incurred approximately $ 2 million of non - sustaining expenditures for the development of west detour .
paul martin, president and ceo, commented :
2016 finished on a positive note with our best gold production quarter of the year. the mill performed at the highest level to date following the successful modification of the 410 - conveyor. the mining rate did not achieve our target in 2016, leading to our decision of accelerating capital and adding to our mining fleet commencing in 2017 to meet our operational targets .
pacific empire minerals is focused on exploring gold - rich copper prospects in british columbia utilizing the prospect generator business model. the company identifies early - stage exploration opportunities and advances the projects with the company’s own reverse circulation drill, allowing for minimal costs while advancing the projects to a stage beyond that of traditional prospect generators. the company’s strong portfolio of assets is a result of continuous generative work conducted since... view profile
panneton decided there and then that he had to have the property. it was “skinny, ” as he puts it, at the 2006 gold price of $ 450 an ounce, but he figured there was a 50: 50 chance that it could work. “it wasn’t a grassroots project in the middle of nowhere, where the chances are one in a million. my chance was down to one out of two. ”
“it’s an amazing story because we’re going to create 500 jobs, ” he said. “we’ve made a lot of happy millionaires with our story because we went from a market cap of $ 100 million to a market cap of $ 3 billion in four years, and it’s not finished. once we go into production and get re - rated, it could be $ 5 or $ 6 billion at the current gold price. ”
on september 6, 2008, mines spun - off all of its assets (other than 19 million detour shares and some working capital) to pelangio exploration, a newly formed corporation with the same board and management as mines. mines was concurrently renamed pdx resources. shareholders of mines received one share of pdx and one share of pelangio for each share of mines they held prior to the spin - off, all on a tax deferred basis due to the specific type of spin - off arrangement that management effected .
in this news release, the company uses the following non - ifrs measures: total cash costs, all - in sustaining costs (
aisc
), realized gold price, average realized margin, adjusted net earnings (loss), and adjusted basic net earnings (loss) per share. refer to the company' s md & a and at the end of this news release for an explanation and discussion of these non - ifrs measures .
cost of sales totaled $ 171. 7 million in the fourth quarter of 2016, a 26% increase from $ 136. 6 million in the prior year period, primarily driven by higher volume of gold sales, higher costs for mine maintenance, and costs associated to the' fines' project. total cash costs for the fourth quarter of 2016 were $ 855 per ounce sold compared to $ 694 per ounce sold in the prior year period .
the mine plan calls for approximately 100 million tonnes (mt) to be mined from the detour lake pit in 2017. mining rates are expected to trend higher starting in the second quarter with the addition of a cat6060 shovel and four cat795 trucks, bringing the available fleet to six shovels and 32 trucks, supported by the addition of a new rom fleet. the average waste to ore ratio for the year is estimated at 3. 6: 1. there are specific months during the year where this strip ratio will be above the life of mine pit average and stripping costs will be capitalized .
there was just one problem with the purchase plan: at the time, mines were extremely low on funds. undaunted, ingrid hibbard, mines' ceo, asked franco nevada for a $ 1. 5 million loan, which mines would repay in royalties and exploration expenditures on the mine property. an offer from franco would surely require a much higher offer to be successful and an outright mine acquisition didn' t necessarily fit with franco' s royalty - focused business model, so franco agreed to this arrangement. mines approached placer and purchased the detour lake deposit for $ 1. 5 million .
net loss for 2016 totaled $ 6. 9 million ($ 0. 04 per share) compared to a net loss of $ 163. 6 million ($ 0. 97 per share) in 2015. the improvement reflects higher gold sales and an income and mining tax recovery. the adjusted net earnings 1 for 2016 totaled $ 10. 4 million ($ 0. 06 per share) compared to adjusted net loss 1 of $ 42. 1 million ($ 0. 25 per share) in 2015 .
net loss for the fourth quarter of 2016 totaled $ 13. 5 million ($ 0. 08 per share) compared to $ 40. 8 million ($ 0. 24 per share) in the prior year period. the improvement reflects higher gold sales and lower income and mining tax expense. the adjusted net loss 1 for the fourth quarter of 2016 totaled $ 6. 0 million ($ 0. 03 per share) compared to $ 4. 4 million ($ 0. 03 per share) in the prior year period .
on february 01, 2002, pelangio mines inc. announced that it has completed diamond drilling of one hole (hole pr - 02 - 01) on the stoughton staz property. this hole was collared approximately 100 meters due west and 140 meters north of st99 - 26 and was designed to further evaluate both the strike and down plunge extents of known gold mineralization intersected by newmont in hole st99 - 26. a second hole is planned contingent upon the results from hole pr - 02 - 01 and upon receipt of funds from hemlo north shore inc. conclusion there are many reasons why pelangio mines inc. is a good potential growing company in the near future :
at nearly $ 1 billion, the cost to build the mine is comparable to that of de beers canada’s price tag for the victor diamond mine. the environmental assessment process and related permitting is expected to wrap up by late summer, with construction due to begin by late fall or early winter .
“we’re out in the communities, and pushing the politicians, and to be frank, the ministry of natural resources, ministry of the environment and ministry of northern development, mines and forestry in the region have been very supportive. ”
this number may rise by the end of 2010 as the company looks to complete 90, 000 metres of drilling immediately west of the open pit, of which 60, 000 metres have already been completed .
some of the infrastructure needed for the ambitious project is already in place, including 151 kilometres of paved road and 34 kilometres of gravel road access off highway 652, alongside rail access from nearby cochrane. an air strip and camp are also already located at the site .
the site will also need a 230 - kilovolt power line, meaning that a 180 - kilometre line will need to be built from the island falls area, just north of smooth rock falls, to link from the fraserdale power station .
“if we built this line in quebec, it would actually be covered by hydro quebec, and they would pay for that line, ” says teevan. “also, we’d be paying about four cents a kilowatt - hour less in energy costs. ”
if approvals and partnerships are obtained on schedule, the construction of the new power line may begin by the end of the year, followed by new tailings facilities .
as construction ramps up, it will create 1, 200 direct jobs and 2, 700 indirect jobs at peak, which will last slightly more than two years .
the plant will then be commissioned in the fourth quarter of 2012. the mill’s throughput is expected to begin at 55, 000 tonnes per day (tpd), a number that will gradually increase to 61, 000 tpd .
once production begins in 2013, as many as 500 jobs will be created, with an estimated 1, 200 indirect jobs needed through mine support and service work .
teevan says the company expects to draw staff from cutbacks at mining projects throughout northern ontario. it’s an approach that spells out no small amount of relief for the region, which is need of a rapid infusion of new career opportunities following those lost from the closure of xstrata’s kidd creek metallurgical site .
“for the timmins area, this project is as big as the ring of fire, ” says tom laughren, mayor of timmins. “we need to hold minister (of northern development, mines and forestry) michael gravelle’s feet to the fire on this so we can get the permits on this to get started. i don’t want to hear any excuse that we didn’t get it, or that we’re not ready, or that we need another year; this project needs to go now. ”
in order to mine the pit, the company’s fleet will look to include 36 300 - tonne haul trucks, two electric cable shovels, three electric - hydraulic shovels, as well as six drills and various ancillary equipment to support the mining operation .
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all 2016 numbers are preliminary figures, unaudited and subject to final adjustment. all amounts are in u. s. dollars unless otherwise indicated. the company' s fourth quarter and full year 2016 financial results will be released on march 9, 2017 .
refer to the section on non - ifrs performance measures at end of the news release .
in the fourth quarter, the mill facility processed a record 5. 5 million tonnes (mt) of ore at an average grade of 0. 90 g / t with average recoveries of 90% . for the year, the mill processed 20. 8 mt of ore as planned, an increase of 1 mt over the prior year. head grade of 0. 90 g / t and recoveries of 89% were below plan for the year by 6% and 2% , respectively .
a total of 20. 9 mt (ore and waste) was mined in the fourth quarter (equivalent to mining rates of 227, 000 tpd), below plan mainly as a result of lower shovel availability. the campbell pit recovery plan which started in september remained on target at year - end. for the year, a total of 87. 4 mt was mined, approximately 9. 3 mt below plan .
from september to year - end, the company conducted a large - scale test where it crushed and screened approximately 1. 9 mt of low and medium grade stockpiles (average grade of approximately 0. 48 g / t) to < 2 inches. the screened portion (< 2 inches), equivalent to 665, 000 tonnes, was processed through the mill at an estimated grade of 0. 79 g / t (or 65% grade improvement). the other crushed material generated during this process can be used for the tailings and road construction. the company will evaluate these results along with the prior testwork to assess the best approach of integrating the fines in the operations.
detour gold corp. is a canadian intermediate gold mining company with a primary focus on the successful ramp up of its flagship asset - the detour lake mine , located in the mining-friendly territory of northeastern ontario . most of the company 's employees are from the cochrane and timmins , ontario area . detour has continued to strive to maximize local employment in the communities surrounding the mine operation and with their aboriginal partner communities , offering both job opportunities and training . the detour lake project was purchased from pelangio mines ltd. in 2007 ( the option property from goldcorp in 2008 ) . detour gold 's proven gold reserves of 15.6 million ounces is comparable to that of canada 's osisko mining , whose main property is also in the vicinity of the abitibi gold belt . the company acquired the asset in 2006 from pelangio mines ltd. for $ 75 million just before it went public on the toronto stock exchange on january 31 , 2007 . initially the mine was assessed as having an indicated mineral resource of 3.4 million ounces . in september 2009 a study suggested that the mine was capable of producing gold at a rate of 560,000 ounces per year ( that was raised to 649,000 by mid-2010 ) . the company 's main asset has 2p reserves of 15.6 million ounces ( up from 14.9 m oz jan 2011 , up 36 % since 2010 ) and ranks 4th among north america 's gold deposits by size ( up from 6 , july 2010 ) ; further exploration could push that up to 20 million ounces . the mine is located in the abitibi greenstone belt near the abitibi gold belt of quebec/ontario . in february 2013 , detour gold poured its first doré bars at detour lake , and has since continued to ramp up its project through the remainder of the year , achieving commercial production in august . in january 2017 detour gold notified shareholders of an unsolicited mini-tender offer made by trc capital corporation to purchase up to 5,000,000 common shares , or approximately 2.86 percent of the company 's outstanding common shares , at a price of ca$ 15.25 per share . detour gold did not endorse the unsolicited mini-tender offer and recommended shareholders not to tender their shares in response . detour gold produced 537,765 ounces of gold in 2016 at all-in sustaining costs of approximately $ 1,005 per ounce . in 2016 detour gold generated us$ 658.3 million in revenue on gold sales of 527,727 ounces of gold at an average realized price of $ 1,221 per ounce of gold . the company reported a net loss of $ 6.9 million or $ 0.04 per share and adjusted near earnings of $ 10.4 million or $ 0.06 per share . detour ended the year with a cash and short-term investment balance of $ 129.4 million . in q1 2017 detour produced 131,418 ounces of gold and generated $ 163.7 million in revenue from the sale of 134,213 ounces at an average realized price of $ 1,216 per ounce . in q2 2017 detour produced 150,135 ounces of gold and generated $ 180.1 million in revenue from the sale of 142,970 ounces at an average realized price of $ 1,257 per ounce . 
detour gold corp. is a canadian intermediate gold mining company with a primary focus on the successful ramp up of its flagship asset - the detour lake mine, located in the mining-friendly territory of northeastern ontario. most of the company's employees are from the cochrane and timmins, ontario area. detour has continued to strive to maximize local employment in the communities surrounding the mine operation and with their aboriginal partner communities, offering both job opportunities and training. the detour lake project was purchased from pelangio mines ltd. in 2007 (the option property from goldcorp in 2008). detour gold's proven gold reserves of 15.6 million ounces is comparable to that of canada's osisko mining, whose main property is also in the vicinity of the abitibi gold belt. the company acquired the asset in 2006 from pelangio mines ltd. for $ 75 million just before it went public on the toronto stock exchange on january 31, 2007. initially the mine was assessed as having an indicated mineral resource of 3.4 million ounces. in september 2009 a study suggested that the mine was capable of producing gold at a rate of 560,000 ounces per year (that was raised to 649,000 by mid-2010). the company's main asset has 2p reserves of 15.6 million ounces (up from 14.9 m oz jan 2011, up 36% since 2010) and ranks 4th among north america's gold deposits by size (up from 6, july 2010); further exploration could push that up to 20 million ounces. the mine is located in the abitibi greenstone belt near the abitibi gold belt of quebec/ontario. in february 2013, detour gold poured its first doré bars at detour lake, and has since continued to ramp up its project through the remainder of the year, achieving commercial production in august. in january 2017 detour gold notified shareholders of an unsolicited mini-tender offer made by trc capital corporation to purchase up to 5,000,000 common shares, or approximately 2.86 percent of the company's outstanding common shares, at a price of ca$ 15.25 per share. detour gold did not endorse the unsolicited mini-tender offer and recommended shareholders not to tender their shares in response. detour gold produced 537,765 ounces of gold in 2016 at all-in sustaining costs of approximately $ 1,005 per ounce. in 2016 detour gold generated us$ 658.3 million in revenue on gold sales of 527,727 ounces of gold at an average realized price of $ 1,221 per ounce of gold. the company reported a net loss of $ 6.9 million or $ 0.04 per share and adjusted near earnings of $ 10.4 million or $ 0.06 per share. detour ended the year with a cash and short-term investment balance of $ 129.4 million. in q1 2017 detour produced 131,418 ounces of gold and generated $ 163.7 million in revenue from the sale of 134,213 ounces at an average realized price of $ 1,216 per ounce. in q2 2017 detour produced 150,135 ounces of gold and generated $ 180.1 million in revenue from the sale of 142,970 ounces at an average realized price of $ 1,257 per ounce.
detour gold corp. is a canadian intermediate gold mining company with a primary focus on the successful ramp up of its flagship asset - the detour lake mine, located in the mining-friendly territory of northeastern ontario. most of the company's employees are from the cochrane and timmins, ontario area. detour has continued to strive to maximize local employment in the communities surrounding the mine operation and with their aboriginal partner communities, offering both job opportunities and training. the detour lake project was purchased from pelangio mines ltd. in 2007 (the option property from goldcorp in 2008). detour gold's proven gold reserves of 15.6 million ounces is comparable to that of canada's osisko mining, whose main property is also in the vicinity of the abitibi gold belt. the company acquired the asset in 2006 from pelangio mines ltd. for $ 75 million just before it went public on the toronto stock exchange on january 31, 2007. initially the mine was assessed as having an indicated mineral resource of 3.4 million ounces. in september 2009 a study suggested that the mine was capable of producing gold at a rate of 560,000 ounces per year (that was raised to 649,000 by mid-2010). the company's main asset has 2p reserves of 15.6 million ounces (up from 14.9 m oz jan 2011, up 36% since 2010) and ranks 4th among north america's gold deposits by size (up from 6, july 2010); further exploration could push that up to 20 million ounces. the mine is located in the abitibi greenstone belt near the abitibi gold belt of quebec/ontario. in february 2013, detour gold poured its first doré bars at detour lake, and has since continued to ramp up its project through the remainder of the year, achieving commercial production in august. in january 2017 detour gold notified shareholders of an unsolicited mini-tender offer made by trc capital corporation to purchase up to 5,000,000 common shares, or approximately 2.86 percent of the company's outstanding common shares, at a price of ca$ 15.25 per share. detour gold did not endorse the unsolicited mini-tender offer and recommended shareholders not to tender their shares in response. detour gold produced 537,765 ounces of gold in 2016 at all-in sustaining costs of approximately $ 1,005 per ounce. in 2016 detour gold generated us$ 658.3 million in revenue on gold sales of 527,727 ounces of gold at an average realized price of $ 1,221 per ounce of gold. the company reported a net loss of $ 6.9 million or $ 0.04 per share and adjusted near earnings of $ 10.4 million or $ 0.06 per share. detour ended the year with a cash and short-term investment balance of $ 129.4 million. in q1 2017 detour produced 131,418 ounces of gold and generated $ 163.7 million in revenue from the sale of 134,213 ounces at an average realized price of $ 1,216 per ounce. in q2 2017 detour produced 150,135 ounces of gold and generated $ 180.1 million in revenue from the sale of 142,970 ounces at an average realized price of $ 1,257 per ounce.