38 38 Page 38 By Gregory Reynolds Detour Gold Corporation is looking at spending between 30 and 50 mil lion over fve years to determine if it has a third mine near its Detour Lake Gold Mine in Northeastern Ontario In 2016 the company completed a total of 52079 metres of infll drill ing at Zone 58N approximate ly seven kilometres south of the Detour Lake processing plant facility Results continued to demonstrate the continuity of the gold mineralization and provided a high level of conf dence in the upper part of the deposit further confrming the under ground mining potential of Zone 58N The company says a concep tual un der ground advanced explorat ion pro gram consists of temporary surface infrastructure a portal and a decline sized at 5 x 5 metres crosscuts and ventilation development necessary to access the deposit for an eventual bulk sample Diamond drilling would be undertak en from drill bays of the decline to allow for delineation drilling for the upper 400 metr es and additio nal drill ing at depth The estimated cost of this program over a period of fve years is expected to range between C30 and C50 mil lion The company would require an advanced exploration permit to com mence this program The company has received all the as say results from the Phase 2 drilling program completed in the fall 15249 metres in 46 holes The majority of the infll drilling was at 25 metre spacing testing the top 250 metres of the deposit G Mining Services Inc an indepen dent engineering frm has completed a preliminary model and conceptual design for an advanced under ground exploration program The block model assumed a 3 metre minimum horizontal thickn ess and work is underway to evaluate the po tential for wider mining areas Based on the geological interpretatio n of the deposit as currently drilled multiple lenses of potential ore were delineat ed from bedrock surface to a depth of approximately 800 metres The deposit remains open below 800 metres The company is also getting good results from exploration work on its TMA Zone In the area east of the cur rent tai lings facility approximately 35 km east of the Detour Lake open pit the company completed 6195 metres in 19 holes as well as various trenches T renching and drilling results have identifed shear hosted gold mineral ization over 1200 metres opening up exploration potential The company s second mine W est Detour is slated for open pit produc tion but not before 2021 It is at the environmental assessment stage and 5 million in development work is planned for this year Paul Martin president and CEO commented 2016 fnished on a positive note with our best gold pro duction quarte r of the year The mill performed at the highest level to date following the successful modifcation of the 410conveyor The mining rate did not achieve our tar get in 2016 leading to our decision of acce lerating capital and adding to our mining feet commencing in 2017 to meet our operational tar gets Detour Gold Corp 3rd mine at Detour Lake being looked at by Page 39 Contd from pg 38 SUDBUR Y MINING REPOR T 2015 After producing 537765 ounces of gold in 2016 the company projects 2017 gold production to be between 550000 and 600000 ounces Detour Gold Corporation is a Canadian inter mediate gold producer The company owns and operates the Detour Lake Mine a long life lar ge scale open pit operation in the mining friendly jurisdiction of Ontario Currently Detour Lake is one of the lar gest gold producing mines in Can ada with reserves of over 16 million ounces of gold The mine plan calls for approximately 100 million tonnes Mt to be mined from the Detour Lake pit in 2017 Mining rates were expected to trend higher starting in the second quar ter with the addition of a CA T6060 shovel and four CA T795 trucks bringing the available feet to six shovels and 32 trucks supported by the addition of a new ROM feet The average waste to ore ratio for the year is estimated at 361 There are specifc months during the year where this strip ratio will be above the life of mine pit average and stripping costs will be capitalized The Detour Lake operation is fore cast to process 21 to 22 Mt of ore in 2017 Head grades were expected to improve after the frst quarter The company does not anticipate pro cessing fnes during the year and will continue to engineer its lowgrade stockpiles 0405 gt for future use 2017 AISC are expected to range from 1025 to 1125 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 frst quarter actual allin sustaining costs would be signifcantly above the yearly guidance Gold production of 143512 ounces in the fourth quarter brought total gold production to 537765 ounces for 2016 in line with revised guid ance of 525000 to 545000 ounces Gold pr oduction seen of 550000 600000 ounces