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Building Canada's Largest Gold Mine Corporate Presentation
- 2. 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 the reserve and resource
estimates, ore grade, expected mine life, anticipated gold production, gold recovery, cash operating costs and other costs, capital
costs, sensitivity to metal prices and other sensitivities, financial analysis of the project, commencement of operations, potential
expansion opportunities, plans for organic growth and expected drilling activities. 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 2011 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 supply and demand for gold, and the level and volatility of the price of gold; the availability of financing for
exploration and development activities; the estimated timeline for the development of the Detour Lake gold project; the expected
mine life; anticipated gold production; gold recovery; the development schedule; cash operating costs and other costs; the financial
analysis for the project; capital costs; sensitivity to metal prices and other sensitivities; the accuracy of reserve and resource
estimates and the assumptions on which the reserve and resource estimates are based; the receipt of necessary permits; 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.
© 2011 Detour Gold All Rights Reserved. 2
- 3. NI 43-101 Disclosure
Information Concerning Estimates of Mineral Reserves and Resources
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 January 31, 2011, Detour Gold announced an updated mineral resource and reserve estimate. The following QPs participated in
this update: Michel Dagbert, Eng., Senior Geostatistician and André Laferrière, P. Geo., Senior Geologist of SGS Canada Inc.
(mineral resources); and André Allaire, Eng., Director Mining and Metals and Patrice Live, Eng., Mining Manager of BBA Inc (mineral
reserve). The NI 43-101 compliant Technical Report for this update was filed on SEDAR on March 15, 2011.
On January 25, 2012, Detour Gold announced a mineral resource and reserve update. The following QPs participated in this update:
Michel Dagbert, Eng., Senior Geostatistician of SGS Canada Inc (mineral resources) and Patrice Live, Eng., Mining Manager of BBA
Inc (mineral reserves).
© 2011 Detour Gold All Rights Reserved. 3
- 4. Invest in Detour Gold
Focus on a world-class asset – Detour Lake
Canada’s largest pure gold play with 15.6 M oz in reserves
(@ US$ 850/oz gold price)
Construction progressing on schedule (70% as of May 31)
One of the best cash flow/share opportunities
Gold production starting in Q1 2013
Excellent organic growth potential (5 year plan)
Potential expansion of mill throughput
© 2011 Detour Gold All Rights Reserved. 4
- 5. Share Capital
Issued and Convertible Options & FN Share Fully Diluted:
Commitments:
Outstanding: + Notes: +
112.6 M 13.0 M 8.7 M
= 134.3 M
Market cap: C$2.6 Billion
Cash position: C$683 Million
Major shareholders:
Paulson & Co. 15% Detour Lake
Fidelity Mgmt 8%
Detour Gold Mgmt <2%
Institutions total >90%
Note: Share data and cash position as of May 31, 2012.
© 2011 Detour Gold All Rights Reserved. 5
- 6. Strong Share Performance
1000%
Share Issuance vs. Performance DGC equity financings
900%
DGC
08/11
800%
571% total return
since IPO
Jan. 2007 to Present Total Return
700%
DGC
DGC 01/12
600% 07/10
500%
DGC
400% 04/08
DGC
Randgold
11/09
300%
Buenaventura DGC
200% 07/09
Eldorado Osisko
AGI
100% (239%)
Aurizon G
IPO IMG Yamana Newcrest
NEM ABX
AEM Great Basin
0% Anglo Gold Ashanti AuRico (209%)
CG Hecla
Goldfields Kinross
Gabriel Eco Oro
GSC Andina Source: BMO, June 2012
-100%
0 50 100 150 200
Jan. 2007 to Present % Change in Shares Outstanding
© 2011 Detour Gold All Rights Reserved. 6
- 7. Successful Focused Approach
DETOUR LAKE: Production
RECORD TIMING FROM “DISCOVERY” 2013
TO PROJECTED PRODUCTION
6 years Development
2011-2012
Feasibility Study
& Permitting
2010
Pre-feasibility
Study
2009
Acquisition/
Discovery
2007
© 2011 Detour Gold All Rights Reserved. 7
- 8. Detour Gold 2012 Objectives
Mineral reserves/resources update for 2011 year-end
Top up of $277 million to complete the project and working capital
Second 45 km segment of transmission line complete
230 kV transmission line connection in Q3
Updated mine plan & operational forecast in Q3
Ore stockpile of 3 Mt available in Q4 for processing
Manpower ramp-up to 400 (now 273 employees at site and Cochrane)
Delivery of 12 haul trucks and 2 cable shovels
Drilling programs:
50,000 m on Block A open pit & initiate pre-feasibility study
5,060 m completed on Lower Detour Lake structure (targeting high-
grade mineralization)
© 2011 Detour Gold All Rights Reserved. 8
- 9. Growing Reserve/Resource Base
RESOURCE GROWTH EXCEEDING 750% SINCE IPO
Date Accumulative
DGC Drilling Resources/Reserves (M oz) Inferred M&I 2P
10M 20M 30M
2005-05
Estimated by Pelangio
2006-09 DGC due diligence
2007-12 50,000m
2008-06 123,000m
2009-09 249,000m 8.8
2010-06 334,000m $850/oz 11.4
2011-01 430,000m $850/oz 14.9
2012-01 523,000m $850/oz 15.6
© 2011 Detour Gold All Rights Reserved. 9
- 10. Detour Lake Reserves & Resources
As at Dec. 31, 2011
Tonnes Grade Contained Gold
@ US$850/oz
(millions) (g/t) (‘000 oz)
Reserves (1)
Proven 101.6 1.29 4,222 DISCOVERY COST
Probable 368.4 0.96 11,351 < $10/oz OF
P&P 470.0 1.03 15,573
Resources (2)
RESERVES
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.
© 2011 Detour Gold All Rights Reserved. 10
- 11. Detour Lake Profile (@ US$850/oz)
January 2012
Detour Lake update
Production start Q1 2013
OP reserves (M oz) 15.6 Open pit
Mill throughput (tpd) 55,000 @ 0.5 g/t cut-off 20,600E
Strip ratio (waste:ore) 3.6
Gold recoveries 91%
Average grade (g/t) 1.03
Estimated mine life (yrs) 22
Avg. production (oz/yr)(1)(2) 657,000
16,500E
Initial Capex (C$ B)(3) 1.45
>1.0 g/t Au
700 m 0.5 - 1.0 g/t Au
1. After full commissioning in Yr 1. <0.5 g/t Au
2. Based on March 2011 TR.
3. Initial capex revised in November 2011.
© 2011 Detour Gold All Rights Reserved. 11
- 12. Valuation Re-rating:<1 Yr from Production
Intermediate Producers Intermediate Producers
P/NAV (Average 0.9x) Reserves/Share Ratio (Average 0.07)
0.17
1.1x 1.1x 0.14
1.0x
0.12
Avg 0.9x
0.8x 0.8x
0.6x 0.6x
Avg 0.07
0.04 0.04 0.04
0.03
Source: Bloomberg and Company Reports, Equity Research and Thomson Financial at May 30, 2012.
Note: NAV per share figures are based on equity research consensus; Share data on fully diluted in the money shares outstanding.
.
© 2011 Detour Gold All Rights Reserved. 12
- 13. Total Cash Costs
Since 2010 (release of Feasibility Study),
$ 800 $ 796
inflationary pressure seen in operating costs
$ 706 $ 706 Approx. % of total cash cost/oz in FS1
$ 700
Maintenance Consumables
$ 600
24% 25%
$ 500 Royalty 4%
7% 14% Labour
G&A
Junior Senior Intermediate
Producers Producers Producers
13%
13%
Diesel
2012E Cash Cost Profile (US$/oz)* Power
*Source: BMO Equity Research
Seniors Producers include: Agnico-Eagle, AngloGold Ashanti, Barrick, Gold Fields, Goldcorp, Kinross, Newcrest, Newmont, Polyus and Yamana.
Intermediate Producers include: African Barrick, Alacer, AuRico, Centamin Egypt, Centerra, Eldorado, Harmony, IAMGold, New Gold, Osisko, Petropavlovsk, Randgold and SEMAFO.
Junior Producers include: Alamos Gold, Aurizon, Avion, Avocet, CGA Mining, Cluff Gold, Dundee Precious Metals, Golden Star, Great Basin Gold, Kingsgate, Lake Shore,
OceanaGold, Perseus, Primero, Resolute, San Gold and Teranga.
1. Total estimated cash cost of US$543/oz based on March 2011 TR using cost parameters from feasibility study, including US$850/oz gold price
and US$80/barrel oil.
© 2011 Detour Gold All Rights Reserved. 13
- 15. Detour Lake: We are on Schedule
2010 2011 2012 2013
Construction Schedule Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Award of Engineering Contract
Award of PCM Contract
Detailed Engineering
Construction camp (1,200 people)
Power line (Phase 1&2) – Electrification 1 2
Equipment purchase/delivery & assembly
Pre-stripping
Process plant – Commissioning start-up
Tailings dam construction (first cell)
Provincial Permits/Aboriginal IBAs
Federal Permits
Start production and ramp-up
GOLD PRODUCTION PROJECTED IN 1Q 2013
© 2011 Detour Gold All Rights Reserved. 15
- 16. Detour Lake: We are on Budget
Capital Expenditures (C$ M)
Spent Committed Project Control
Description May 31, May 31, Estimate
2012 2012 (as of 11/2011)
Mining Fleet and Facilities 117 170 203
Crushing and Processing (P&E) 390 586 565
Tailings and Water Mgmt 15 45 65
Infrastructure and Power line 133 148 156
Other Indirect 158 202 310
EPCM 80 100 101
Contingency (10%) - 1 50
Total (pre-production) 893 1,252 1,450
PROJECT CONSTRUCTION 70% COMPLETE
© 2011 Detour Gold All Rights Reserved. 16
- 17. 2012 Operational Readiness Plan
Ore ready to be processed by the fourth quarter of 2012
Pre-production capital costs include $78 M for pre-strip activities
Up to 3 Mt of ore ready for process
2012 Pre-Stripping PROJECT CHANGE
Feasibility PCE Status OF SCOPE
Study (11/2011) (05/31/2012)
=
Overburden/Till 16 Mt 21 Mt 5.50 Mt
Waste - 10 Mt 1.82 Mt A BENEFIT
Ore 3 Mt -
Ore available for
Estimated Cost C$30 M C$78 M -
processing in 2012
© 2011 Detour Gold All Rights Reserved. 17
- 20. Initial Mining Fleet at Site
10 CAT 795F trucks at site (2 supplied by CAT); Loading Units
4 more being assembled
3 X Hydraulic CAT6060 (25 m3)
2 CAT6060 shovels in operation
2 X Electric cable shovels (48 m3)
Haulers
23 X CAT 795F trucks (320 t);
30-35 at peak of operation
© 2011 Detour Gold All Rights Reserved. 20
- 21. Detour Lake Development Progress
Detailed engineering, procurement
of major equipment and awarding
of major contracts complete
Second 45 km segment of
powerline complete Detour Lake
Pre-stripping program ongoing 45 45 km
km
Powerline
Powerline
Gravel (34 km)
Installation of mill equipment
underway Paved road (151 km)
Truck wash facilities complete
Permanent camp construction
completed
© 2011 Detour Gold All Rights Reserved. 21
- 22. Detour Lake
Mining Facilities
© 2011 Detour Gold All Rights Reserved.
Note: Open pit reserves using US$850/oz gold 22
22
- 23. Overview Detour Lake Facilities
Processing Plant
Truck Wash
Truck Shop &
Warehouse
Mine Offices
12-06-08
© 2011 Detour Gold All Rights Reserved. 23
- 24. Overview Detour Lake Facilities
Stockpile
Reclaim
Secondary
Crushers
Primary
Crusher
12-06-08
© 2011 Detour Gold All Rights Reserved. 24
- 25. Primary Crusher (up to 100,000 tpd capacity)
Here now
12-06-08 Surface
Gyro is
9 m high
35 m
© 2011 Detour Gold All Rights Reserved. 25
- 26. Stockpile Reclaim
Cover Stockpile
Reclaim
12-06-08
Secondary and
Pebble Crushers
12-06-08
© 2011 Detour Gold All Rights Reserved. 26
- 29. Simple Process Plant
Conventional gravity and CIP plant
55,000 tpd (=92% availability of 60,000
tpd capacity)
2 parallel lines (each with 1 secondary
cone crusher + 1 SAG and 1 ball mill) A
Estimated gravity recovery: 30-40%
Estimated overall gold recovery: 91.0%
A Leach time 29 hours
Leach feed size 80% passing 95 μm
© 2011 Detour Gold All Rights Reserved. 29
- 30. Detour Lake Employees & Contractors
Construction Phase Operation Phase (Starting 2013)
>1,500 workers (currently) 400-500 employees
Ramping up DGC team (273) Rotation 1 week in /out
New modern camp facilities with
400 en-suite rooms completed
© 2011 Detour Gold All Rights Reserved. 30
- 31. Focus: Hiring Local First
273 DETOUR GOLD EMPLOYEES (May 30, 2012)
Require a complement of +400 employees by production start in early 2013
25%
Workforce Origin
Professional 4% 2%
Front Line
Cochrane
75%
Cochrane Area
28%
Northern Ontario
44%
Professional are: MGMT, Eng., Geo., Supt. 22% Rest of Ontario
Front Line are: Operators, Admin, Support
28% Reside in Cochrane Other
Continuing focus on hiring local/regional
*25% of employees are Aboriginals
© 2011 Detour Gold All Rights Reserved. 31
- 33. Planning for Organic Growth
5 yr plan for successful organic growth
Large prospective land position of approx. 540 km2
Land position increased with acquisition of Trade Winds properties
Two main gold structures with total strike length of >80 km
Continue focus on Detour Lake deposit extension (northern structure)
Test targets on structure south of Detour Lake
Future Objectives
Grow reserve base to +20 M oz (@ US$850/oz)
Increase mill throughput to above 75,000 tpd for gold production
output of +800,000 oz/yr
Find high-grade ore near-surface within trucking distance to
supplement mill
© 2011 Detour Gold All Rights Reserved. 33
- 34. 2012 Plan for Successful Organic Growth
Priority #1 on Block A
Area between Block A open pit resource (M-Zone) and the
underground QK Zone discovered by Placer in mid-90’s
Drilling program of 50,000 m in 1H 2012
Start pre-feasibility study for small open pit (Block A resource)
Advance exploration of QK underground zone
Priority #2 on Lower Detour Deformation Zone (+40 km)
5,060 m of diamond drilling completed: N-S drill fence on high-grade drill
hole intercepts (53 g/t Au / 3 m & 22.6 g/t Au / 1 m)
115 km of IP geophysical survey completed
Geological and structural mapping; data compilation
© 2011 Detour Gold All Rights Reserved. 34
- 35. Planning for Organic Growth
2012 target
Deposit open to the west and at depth
+50,000 m of drilling for 2012 (Block A open pit above QK Zone)
*Not updated with TWD Dec. 30th PR. On Dec. 1, 2011, Detour Gold announced the acquisition of TWD.
© 2011 Detour Gold All Rights Reserved. 35
- 36. Priority # 1 - Block A Target
Block A near-surface resource
2012 proposed DH
2012 extension DH
Detour Lake
DH included in 2011 year-end
reserves 2011 year-end reserves = 15.6 M oz
DH not included in 2011 year-end
reserves
Historical DH
© 2011 Detour Gold All Rights Reserved. 36
- 37. Priority # 1 - Block A Target
Block A
2012 Drilling Program
June 10, 2012
2012 proposed DH
2012 extension DH 2011 year-end reserves
2012 completed DH
Historical DH = 15.6 M oz
Cancelled or
not accessible
© 2011 Detour Gold All Rights Reserved. 37
- 38. Planning for Organic Growth
+80 km of favourable
geology
Sunday Lake Option
15.6 M oz in Reserves
Existing DDH
Insert- see next slide Gold occurrence (OGS)
DDH intersection >1g/2m
DDH intersection >1g/10m
MMI Survey Coverage
MMI Au Anomaly
*Note: Excludes drilling around Detour Lake and M zone (Block A).
© 2011 Detour Gold All Rights Reserved. 38
- 41. Evaluating Expansion Opportunities
Best scenario is throughput
2012 increase from 55,000 to 75,000 tpd
@ US$1,200/oz
Start pre-feasibility on Block A
Complete feasibility study and
2013 assess technical feasibility and
resultant project economics
At >US$1,000/oz and after
2014 successful commercial production
is achieved, proceed with plant
expansion
Complete expansion within 2 years
© 2011 Detour Gold All Rights Reserved. 41
- 42. Invest in Detour Gold
Focus on a world-class asset – Detour Lake
Canada’s largest pure gold play with 15.6 M oz in reserves
(@ US$ 850/oz gold price)
Construction progressing on schedule (70% as of May 31)
One of the best cash flow/share opportunities
Gold production starting in Q1 2013
Excellent organic growth potential (5 year plan)
Potential expansion of mill throughput
© 2011 Detour Gold All Rights Reserved. 42
- 44. Detour Lake – Surface Plan
DH included in the 2011 year-end
reserves
DH not included in the 2011 year-end
reserves
Pre 2007 DH
2011 Year-end reserves
= 15.6 M oz
© 2011 Detour Gold All Rights Reserved. 44
- 45. Detour Lake – Long Section
Looking 20,070 N
QK Zone
DH included in the 2011 year-end
reserves
DH not included in the 2011 year-end
reserves
Pre 2007 DH
© 2011 Detour Gold All Rights Reserved. 45
- 46. Block Model - Gold Distribution
Approx. 3 M oz. between 0.3-0.5 g/t Au
1,600
OK (oz Au)
ID3 (oz Au)
1,400
1,200
1,000
Ounces (000’s)
800
600
400
200
0
0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0
Cut-off BINs
© 2011 Detour Gold All Rights Reserved. 46
- 47. Management & Directors
Management
Gerald Panneton, Founder, President & Derek Teevan, VP Aboriginal & Government
CEO, Director Affairs
Michael Kenyon, Chairman Eric Josipovic, Controller
Paul Martin, CFO Drew Anwyll, Director of Operations
Pierre Beaudoin, Sr. VP Capital Projects Andrew Croal, Dir. Technical Services
Pat Donovan, VP Corporate Development Laurie Gaborit, Dir. Investor Relations
Julie Galloway, VP General Counsel & Greg Miazga, Dir. Construction &
Corporate Secretary Engineering
James Mavor, VP Finance Bill Snelling, Director Corporate Systems
Rachel Pineault, VP HR & Northern and Controls
Affairs Christian Brousseau, Project Manager
James Robertson, VP Environment & Patrik Gillerstedt, Mine Manager
Sustainability
Directors
Peter Crossgrove Ingrid Hibbard Gerald Panneton
Louis Dionne Michael Kenyon Jonathan Rubenstein
Robert E. Doyle Alex G. Morrison Graham Wozniak
© 2011 Detour Gold All Rights Reserved. 47
- 48. Contact Information
Gerald Panneton, President & CEO
Email: gpanneton@detourgold.com
Ph: 416 304 0800
Laurie Gaborit, Director Investor Relations
Email: lgaborit@detourgold.com
Ph: 416 304 0800
www.detourgold.com
© 2011 Detour Gold All Rights Reserved. 48