(miningweekly) Toronto – Emerging midtier gold miner Detour Gold on Monday said that output could twice at its flagship Detour lagoon mine, in Ontario, to between 450,000 ounce and 500,000 ounce this year, and that money costs would fall to between $800/ounce and $900/ounce.
The TSX-listed business also announced that it had secured a long-term electrical energy contract at a repaired rate, which is smaller rate than the location rate, for the Detour Lake mine. Detour said it anticipated to save C$20-million in power costs this year after it secured a six-year power agreement at C$0.05/kWh with the Ontario Power Authority.
Detour said its maintaining capital expending guidance for 2014 would total $131-million, more than what erstwhile president and CEO Gerald Panneton said last year was anticipated to be less than $100-million.
“This extends to reaffirm our belief that the company may need to entire a financing in the first half of 2014 to bypass its money balance dropping underneath $80-million,” Desjardins Capital Markets said in a statement to purchasers.
The Detour Lake mine was anticipated to method 19-million tonnes in 2014 at a mean degree of 0.87 g/t with a recovery rate of 92% and a narrow piece ratio of 3.3:1.
According to the 2012 year-end statement, the Detour Lake mine has verified and likely reserves of 15.6-million ounces of gold.
After the company released the affirmative report Detour’s TSX-listed supply increased to a high of C$6.44 on Monday, before resolving at C$6.19 apiece.