The document discusses plans to build Canada's largest gold mine at the Detour Lake project in Ontario. Construction is progressing on schedule, with gold production expected to begin in Q1 2013. The mine is projected to produce an average of 657,000 ounces of gold annually over its estimated 21.5 year mine life. Capital costs to complete the project are estimated between $1.46-1.5 billion Canadian dollars.
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, and plans for organic growth. 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.
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3. NI-43 101 Disclosure
Information Containing 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 September 4, 2012, Detour Gold announced an updated mine production plan for the Detour Lake project. The NI 43-101
compliant Technical Report for this update was filed on SEDAR on October 18, 2012. The following QPs participated in this
update: BBA Inc., under the direction of André Allaire, Eng., Vice-President, Markets – Mining and Metals and Patrice Live,
Eng., Mining Manager; SGS Canada Inc., under the direction of Michel Dagbert, Eng., Senior Geostatistician and Maxime
Dupéré, P.Geo., Senior Geologist; and AMEC Environment & Infrastructure, a Division of AMEC Americas Limited, David G.
Ritchie M.Eng., P.Eng, Senior Associate Geotechnical Engineer.
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4. Invest in Detour Gold
Our Vision
Focus on a world-class asset – Detour Lake
Canada’s largest pure gold play with 15.6 M oz in reserves
Construction progressing on schedule (95% as of October 31)
One of the best cash flow/share opportunities
Gold production starting in Q1 2013
Average annual gold production of 657,000 oz
Excellent organic growth potential (5 year plan)
Potential expansion of mill throughput
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5. Share Capital
OPTIONS & FN SHARE
COMMITMENTS
ISSUED AND 8.5 M
OUTSTANDING
FULLY DILUTED CONVERTIBLE
113.1 M 134.6 M NOTES
13.0 M
Market cap: C$3.1 billion
Cash position: C$348 million
Major shareholders:
Paulson & Co. 15%
Fidelity Mgmt 8%
Detour Gold Mgmt <2%
Institutions total >90%
Note: Share data at October 31, 2012 and cash position at September 30, 2012.
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6. Share Capital
1000%
Share Issuance vs. Performance
900% DGC
08/11
800% 660% total
return since IPO
Jan. 2007 to Present Total Return
700%
DGC
DGC 01/12
600% 07/10
500%
DGC
04/08
400%
Randgold DGC
300% 11/09
DGC
200% 07/09 Eldorado
Osisko
Buenaventura AGI
(239%)
100%
Aurizon G IMG Newcrest
Yamana
IPO NEM
ABX AEM Great Basin
0% Anglo Gold Ashanti Hecla
AuRico (209%)
CG Goldfields Kinross
Gabriel Eco Oro
GSC Andina Source: BMO, Aug. 2012
-100%
0 50 100 150 200
Jan. 2007 to Present % Change in Shares Outstanding
Note: Date of DGC equity financings
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7. Successful Focused Approach
Record Timing from “Discovery” to Projected Production
Detour Lake in 6 years
2007 2009 2010 2011-12 2013
PRODUCTION
2013
ACQUISITION PRE-FEASIBILITY FEASIBILITY DEVELOPMENT PRODUCTION
/DISCOVERY STUDY STUDY &
PERMITTING
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8. Detour Gold 2012 Objectives
• Mineral reserves/resources update for 2011 year-end
• Top up of $277 million to complete the project and working capital
• Second 45 km segment of transmission line complete
• 230 kV transmission line connection in Q3
• Phase 1 drilling (49,000m) for Block A pre-feasibility study
Updated mine plan & operational forecast in Q3
Meeting employment ramp up schedule (396 full-time employees at
site and Cochrane)
Commissioning mills in Q4
Ore stockpile of 2.3 Mt available in Q4 for processing
2012 year-end = 20 haul trucks + 4 shovels
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10. Detour Lake Profile
September
Detour Lake 2012 Mine Plan
Open pit
@ 0.5 g/t cut-off 20,600E Production Start Q1 2013
OP Reserves (M oz) 15.6
Mill throughput (tpd) 55,000
Strip Ratio (waste:ore) 3.7
16,500E Gold recoveries 91%
Average grade (g/t) 1.03
Estimated mine life (yrs) 21.5
700 m 1.0 g/t Au
Avg. Production (oz/yr) 657,000
0.5 - 1.0 g/t Au
<0.5 g/t Au Cash operating costs (C$/oz) $710
Total cash costs (C$/oz) $749
Initial Capex (C$ B) 1.45
Note: Gold price assumptions: US$1,600/oz for 2013, US$1,500/oz for 2014, and US$1,400/oz for 2015.
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12. Updated Operating Costs
Breakdown of 2013-14 TCC
Operating Costs (LOM) C$/t milled C$/t mined C$/oz
Mining costs 11.65 2.49 388
LABOUR
Processing cost 7.83 -- 260 18% POWER
G&A 1.86 -- 62
12%
DIESEL
Cash operating costs 21.34 -- 710 MAINTENANCE 8%
Royalty (2%) and other 1.26 -- 42 22% G&A
Refining 0.12 -- 4
5%
Silver credit (0.20) -- (7) CONSUMABLES ROYALTY+
OTHER
Total cash costs (TCC) 22.52 -- 749 29% (2% NSR)
6%
2013 TCC estimated between C$800/oz and C$900/oz
(on commercial production of 200,000 oz to 250,000 oz sold)
10% change in diesel or power = $9/oz change in TCC
10% change in Cdn$ FX rate = $63/oz in TCC
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13. Capex & Sustaining Capital
Spent PCE
Capital Expenditures (C$ M)
09/30/2012 11/2011
Mining Fleet and Facilities 180 203
Crushing and Processing (P&E) 548 565
Tailings and Water Mgmt 33 65
Infrastructure and Power line 146 156
Other Indirect 191 310
EPCM 89 101 12-10-22
Contingency - 50
Total (pre-production) 1,187 1,450
Expected to finish within 3% i.e. between $1.46 and $1.5 billion
Estimated LOM sustaining capital of C$1.2 billion:
2013 = C$180 M
2014 = C$140 M
Note: As of September 30, 2012, the Company has approximately $348 million in cash and short-term investments
sufficient to fully finance the remaining project expenditures ($270-$310 million).
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14. Financial Analysis
Base Case Assumptions
Gold - US$1,200/oz (1) Power Cdn $0.065/kwh
F/X - $Cdn/$US = 1.00 Diesel US$100/barrel (WTI)
Base Case (1)
US$ Billions Undiscounted (0%) 5.0%
Pre-tax cash flow 4.3 1.7
Net cash flow after tax 3.0 1.1
Pre-tax IRR 14.4%
1. Gold price US$1,600/oz for 2013, US$1,500/oz for 2014, and US$1,400/oz for 2015.
@ US$1,600/oz
US$ Billions Undiscounted (0%) 5.0%
Pre-tax cash flow 9.4 4.4
Net cash flow after tax 6.6 3.0
Pre-tax IRR 24.6%
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16. Detour Lake: We are on Schedule
Gold Production Projected in Q1 2013
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-production stripping
Process Plant - Commissioning start-up
Tailings Dam Construction (first cell)
Provincial Permits/Aboriginal IBAs
Federal Permits
Start production and ramp up
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17. Mining is Ramping Up
2012 Pre-Stripping Status (10/31/2012)
Overburden/Till 12.8 Mt
Waste 5.7 Mt
Low Grade (0.3-0.5 g/t) 0.7 Mt ORE WASTE
Ore 1.1 Mt
Total 20.3 Mt
12-08-20
Ore ready to be processed by Q4 2012
Plan to have 2.3 Mt @ 0.81 g/t stockpiled
Average mining rates of +100,000 tpd in last two months
4 crews working on 2 shifts operating 8 haul trucks (CAT 795F) and
2 hydraulic shovels (CAT6060- 34m3 electric and 28 m3 diesel)
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18. Mining is Ramping Up
NORTH WASTE
MINERALIZED DUMP PLANT SITE
ZONE
CAMPBELL
PIT
CURRENT
PIT SHAPE APPROX. PIT SHELL
AT END OF 2014
Satellite image dated July 2012
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19. 2013 Mine Plan
Based on January 2013 Startup
Total gold production estimate of 407,000 oz (1)
Pre-commercial production = 144,000 oz
Commercial production = 250,000 oz (excludes 12,715 oz locked in
circuit load)
Management guidance:
350,000 to 400,000 oz
Total cash costs between
C$800/oz and C$900/oz
1. 2013 production of 394,000 ounces of saleable gold plus 12,715 ounces locked in circuit load.
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28. Simple Process Plant @ 92% Availability
Stockpile
Gyratory 12 h live capacity
crusher:
60” x 113”
90,000 tpd
Secondary crushers:
2 X XL-1100 Ball mills:
SAG mills: 2 X 26’ x 40’6’’, 15MW
67,000 tpd
2 X 36’ x 20’, 15MW 55,000 tpd
Pebble crushers:
55,000 tpd
2 X XL-1100
To
73,000 tpd leaching
circuit
To
gravity
circuit
Circ. load
Circ. load From
28 %
Leach circuit: 250 % gravity
circuit
55,000 tpd + 15% contingency in piping capacity
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29. Detour Lake Employees & Contractors
Construction Phase Operation Phase (Starting 2013)
+1,400 workers (at Oct. 31, 2012) 400-500 employees
Ramping up DGC team (396) Rotation 1 week in/out
New modern camp facilities with
400 en-suite rooms completed
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30. Focus: Hiring Local First
On track with ramp up schedule: 396 employees as of October 31, 2012*
DIVISION OF LABOUR WORKFORCE ORIGIN
COCHRANE
FRONT LINE AREA COCHRANE
81% 26% 25%
REST OF
PROFESSIONAL ONTARIO
NORTHERN
19% ONTARIO 3%
44% OTHER
2%
Professional are: MGMT, Eng., Geo., Supt.
Front Line are: Operators, Admin, Support
Continuing focus on hiring local/regional * Excludes Corporate office.
25% of employees are Aboriginal
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31. PLANNING FOR
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ORGANIC GROWTH
Under-Explored Greenstone Belt
32. Planning for Organic Growth
5 Year Plan for Successful Organic Growth
Large prospective land position of approx. 540 km2
• Two main gold structures with total strike length of >80km
• Continue focus on Detour Lake deposit extension (northern
structure i.e. Block A)
• 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
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33. Priority #1 – Block A Target
Block A
Pre-feasibility
Detour Lake deposit open to the west and at depth
Block A Pre-feasibility underway: Phase 1 drilling (49,000 m)
completed
*Not updated with TWD Dec. 30th PR. On Dec. 1, 2011, Detour Gold announced the acquisition of TWD.
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34. Priority # 1 - Block A Target
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
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35. Priority #2 – South Structure
+80 km of favourable
geology
Sunday Lake Option
15.6 M oz in Reserves
MMI Survey Coverage
MMI Au Anomaly
Existing DDH *Note: Excludes drilling around Detour Lake and M zone (Block A).
Gold occurrence (OGS)
DDH intersection >1g/2m
DDH intersection >1g/10m
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36. Evaluating Expansion Opportunities
Best scenario is throughput increase 55,000 to
2012 75,000 tpd @ US$1,200/oz
Start pre-feasibility on block A
Complete feasibility study and
assess technical feasibility and
2013
resultant project economics
At >US$1,000/oz and after successful commercial
2014 production is achieved, proceed with plant
expansion
Complete expansion within 2 years
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37. Invest in Detour Gold
Our Vision
Focus on a world-class asset – Detour Lake
Canada’s largest pure gold play with 15.6 M oz in reserves
Construction progressing on schedule (95% as of October 31)
One of the best cash flow/share opportunities
Gold production starting in Q1 2013
Average annual gold production of 657,000 oz
Excellent organic growth potential (5 year plan)
Potential expansion of mill throughput
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44. Management & Directors
Management
Gerald Panneton James Mavor Andrew Croal
Founder, President & CEO VP Finance Director Technical Services
Director Rachel Pineault Laurie Gaborit
Michael Kenyon VP HR & Northern Affairs Director Investor Relations
Chairman James Robertson Jean-Francois Metail
Paul Martin VP Environment & Director Reserves and Resources
CFO Sustainability Greg Miazga
Pierre Beaudoin Derek Teevan Director Construction & Engineering
Sr. VP Capital Projects VP Aboriginal & Bill Snelling
Pat Donovan Government Affairs
Director Corporate Systems & Controls
VP Corporate Development Eric Josipovic Christian Brousseau
Julie Galloway Controller
Project Manager
VP General Counsel & Drew Anwyll
Corporate Secretary Director of Operations Patrik Gillerstedt
Mine Manager
Directors
Peter Crossgrove Michael Kenyon Jonathan Rubenstein
Louis Dionne Alex G. Morrison Graham Wozniak
Robert E. Doyle Gerald Panneton
Ingrid Hibbard
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45. Contact Information
Gerald Panneton
President & CEO
Email: gpanneton@detourgold.com
Phone: 416.304.0800
Laurie Gaborit
Director Investor Relations
Email: lgaborit@detourgold.com
Phone: 416.304.0800
www.detourgold.com
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