Dgc 13 12_03-04_scotia mining conference

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Scotiabank Mining Conference, Toronto

December 3-4, 2013

CANADA’S NEXT INTERMEDIATE GOLD PRODUCER

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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 gold production and cash costs guidance for

2013 and 2014, reserve and resource estimates, ore grade, expected mine life, average annual gold production, gold recovery, cash

operating costs and other costs, sensitivities, ramp-up of operations, mining rates reaching approximately 250,000 tpd by year-end 2013,

mining of Domain #2 representing approximately 20% of the total feed for the fourth quarter, future operating plans, providing 2014

guidance in January 2014 and reporting an updated mine plan for Detour Lake in the first quarter of 2014, potential expansion opportunities,

and plans for organic growth which includes growing mineral reserves to more than 20 million ounces. 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 2012 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 availability of financing for exploration

and development activities; operating and capital costs; the Company’s ability to attract and retain skilled staff; the mine development

schedule; sensitivity to metal prices and other sensitivities; the supply and demand for, and the level and volatility of the price of, gold;

timing of the receipt of regulatory and governmental approvals for development projects and other operations; the supply and availability of

consumables and services; the exchange rates of the Canadian dollar to the U.S. dollar; energy and fuel costs; the accuracy of reserve and

resource estimates and the assumptions on which the reserve and resource estimates are based; 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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Notes to Investors

The mineral reserve and resource estimates reported in this presentation were prepared in accordance with Canadian National Instrument

43-101 Standards 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.

The scientific and technical content of this presentation has been reviewed, verified and approved by Drew Anwyll, P.Eng., Director of

Operations, a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 “Standards of Disclosure for

Mineral Projects”.

Information Containing Estimates of Mineral Reserves and Resources

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Invest in Detour Gold

Our Vision

Become a leading intermediate gold producer and

premier investment opportunity

Execution Discipline Focus

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Focused on One Core Asset

DETOUR LAKE – ONTARIO, CANADA

Low-risk, safe mining jurisdiction

100% owned large prospective land package of

630 km2 on Abitibi Greenstone Belt

› High quality, long life producing open

pit mine (15.6 M oz in reserves)

› Significant potential for production

growth

› Exploration upside for high-grade

mineralization

ONTARIO

Toronto

Timmins

DETOUR LAKE MINE

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Note: Cash position at September 30, 2013 and share data at October 31, 2013. Conversion price for the Notes is US$38.50.

Share Capital

FULLY DILUTED

161.5 M

OPTIONS & FN SHARE

COMMITMENTS

10.3 M

CONVERTIBLE

NOTES

13.0 M

ISSUED AND

OUTSTANDING

138.2 M C$543 M

US$156 M

TOP SHAREHOLDERS

MARKET CAP

CASH POSITION

PAULSON & CO: 15%

INSTITUTIONS TOTAL: >80%

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Execution = Detour Lake in 6 Years

2013

Built Detour Lake on schedule

Started gold production in February

Reached commercial production in August

ACQUISITION /DISCOVERY

2007

PRE-FEASIBILITY STUDY

2009

FEASIBILITY STUDY & PERMITTING

2010

DEVELOPMENT

2011-12

PRODUCTION

2013

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Strategy = Focused on Profitability

Objectives:

Deliver on operational performance

Generate positive cash flows

Use cash flow to fund future organic

growth

Provide return on capital

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First gold pour in February

Secured $90 million credit facility

Commissioned second production line

25,000 m drilling program targeting high-grade

gold mineralization

Reached commercial production in August

Produced approximately 180,000 ounces of gold

in first 10 months

Looking Ahead

Gold production target of between 240,000 and

260,000 oz for the year

Updated mine plan and year-end mineral

resources/reserves in Q1 2014

2013 To Date

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Source: Bloomberg, company filings, Thomson and select Street Research

Note: Market data updated to November 14, 2013

Undervalued vs. Peers

Consensus P/NAV P / 2014 CF

0.33x

0.64x

0.65x

0.67x

0.82x

0.82x

0.82x

0.85x

0.92x

0.98x

1.15x

Detour

IAMGOLD

Allied Nevada

Argonaut

Osisko

AuRico

B2Gold

Alacer

New Gold

Alamos

African Barrick

5.1x

5.7x

5.8x

6.1x

6.2x

7.8x

8.0x

8.2x

9.2x

10.1x

16.9x

Detour

African Barrick

IAMGOLD

Allied Nevada

Alacer

New Gold

Osisko

B2Gold

AuRico

Argonaut

Alamos

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Key Statistics (1)

OP reserves (M oz) 15.6

Mill throughput (tpd) 55,000

Strip ratio (waste:ore) 3.7

Gold recoveries 91%

Average grade (g/t) 1.03

Estimated mine life (yrs) 21.5

Avg. production (oz/yr) (2) 657,000

Initial capex (C$ B) 1.5

Sustaining capex (C$ B) 1.2

Detour Lake Mine at a Glance

Commercial production declared

on September 1, 2013

1. Based on September 2012 Mine Plan (October 2012 Technical Report).

2. Includes expansion from 55,000 tpd to 61,000 tpd.

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Processing Plant

55,000 tpd conventional gravity and

CIP processing plant with two

production lines

Primary crusher (90,000 tpd capacity)

Each line has 1 secondary crusher,

1 pebble crusher, 1 SAG and 1 ball mill

Mine Operations

Mining rates averaged 205,000 tpd in

October

Current mining fleet of 20 haul trucks &

5 shovels (incl. 2 rope shovels)

Stockpile availability

Detour Lake Mine Ramp Up

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2013 Q1 Q2 Q3

Ore tonnes mined (Mt) 1.29 2.70 4.16

Tonnes milled (Mt) 1.02 2.87 3.88

Mill grade (g/t Au) 0.64 0.76 0.72

Recovery (%) 80 82 85

Availability (%) 66 68 78

Gold produced (oz)1,2 16,841 57,897 75,672

Q1-Q3 2013 – Operation Statistics

1. Q3 = 80,765 oz poured (the inventory was reduced from 23,189 to 17,998 oz).

2. During September, the first month of commercial production, the Detour Lake mine

produced 24,021 oz gold.

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Q3 2013 – Mine Development

Q3 Mine Performance:

Mining rates averaged 180,222 tpd

› 201,000 tpd average in September; 252,000 t record day

Increased blasted inventory: 2.3 Mt at end of September

Improvement in shovel productivity

Improvement in haul truck cycle

› Haul road and pit floor quality

› Pit de-watering

2013 Ore

(Mt)

Waste

(Mt)

Overburden

(Mt)(1)

Total

Mined

(Mt)

Strip

Ratio

Q3 4.16 12.4 4.16 16.6 3.0

Q2 2.70 10.0 4.0 12.7 3.7

Q1 1.29 8.5 4.4 10.4 6.6

1. Overburden is included in the waste figure.

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Calcite

Zone

Domain 2

Domain 5 Current OB

removal by

contractor

Waste rock


Oct. 2, 2013

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2013

Tonnes

Milled

(Mt)

Availability

(%)

Tonnes per

Operating day

Tonnes per

Calendar day

Q3 3.88 78 53,821 42,142

Q2 2.87 68 46,500 31,500

Q1 1.02 66 16,837 11,112

Q3 2013 – Mill Ramp-up

Q3 Mill Performance:

Mill processing rates averaged 42,142 tpd

› Record day at 58,000 tonnes

› 12 days in September above 50,000 tpd

Planned shutdown for 6 days in September for SAG mills liner

change

Further adjustment and modifications to secondary crushers

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Objective: Increase Gold Production Levels

Progressively increase mining rates to 250,000 tpd

Mining higher grade Domain #2 (~20% of total feed)

Start operating 5th shovel (CAT 6060) in November

Preparation for 2014 Mine Plan:

Accelerating pre-stripping with contractor: 2 Mt of OB removal

underway for construction of south haul road

South haul road to be completed by year-end

Next Focus: Lowering Costs Production Growth

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Current

OB removal

by contractor

Q4 2013 – Start Mining Domain #2

Oct. 2, 2013

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Q4 2013 – Mill Ramp-up

Objective: Increase Gold Production Levels

Target throughput of +50,000 tpd

› Improve availability to +85%

› Increase utilization rates

Improve recovery to +87%

› Improve use of gravity circuit

› Continue leach circuit optimization

Key catalyst to reach nameplate capacity (55,000 tpd):

Finalize modifications to both pebble and secondary crushers

Further reduce unplanned shutdowns (8% in September)


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Best month to date:

Gold production of 29,541 oz (32,043 oz poured)

Mill processed 1.4 Mt at an average grade of 0.72 g/t

Metallurgical recoveries averaged 91.6%, (higher than projected

levels in the feasibility study)

Average throughput rate of 44,937 tpd, with 15 days > 50,000 tpd

Availability improved to 83%

Mining rates averaged 205,000 tpd

October Preliminary Production Results

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Near-term Results: Free Cash Flow

Cost Reductions:

Mining and milling unit costs to improve with increased volume and

efficiency - economy of scale

Reduce current Tailings Facility costs - construction change from

“downstream” to approved “center line” design

Opportunity to reduce power costs with Ontario provincial program


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Looking at 2014 and Beyond

In Progress:

Budget and detailed mine production plan for 2014

› Preliminary 2014 guidance of between 440,000 oz and

500,000 oz of gold produced at total cash costs+capex of

US$1,150/oz to US$1,250/oz

Year-end reserve and resource update

› New pit shell for Detour Lake (2011 drilling)

› Reserve estimate at US$1,000/oz and cut-off grade of

0.5 g/t (unchanged)

› Block A in resource category (2012 drilling)

Optimize 5-year production schedule

Evaluate potential expansion from 55,000 to 61,000 tpd

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Inferred M&I P&P

10M oz

20M oz

30M oz

15.6 14.9

11.4

8.8

Organic Growth Opportunities

Long-term growth of reserve base to

+20 M oz

› Reserve/resource update for

Detour Lake mine and Block A

Large prospective land position of

630 km2

› Focus on high-grade gold

targets:

›

Discovery of Zone 75 with

17.33 g/t over 4.4

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*Note: Excludes drilling around Detour Lake and M zone (Block A).

Lower Detour Area

15.6 M oz in Reserves


630 km2

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Organic Growth Opportunities 25,000 m of drilling

in Q1 2013

17.33/4.4

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Long Section across Zone 75


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Near-term objectives (1-3 years):

Detour Lake reserve/resource update (open pit west expansion)

Evaluation of potential expansion options

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Invest in Detour Gold

Our Vision

Become a leading intermediate gold producer and

premier investment opportunity

Execution Discipline Focus

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ADDITIONAL INFORMATION

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Q3 2013 – Highlights

1. For reconciliation of these measures, refer to Non-IFRS Financial Performance Measures slides 41 & 42

of this presentation.

2. All sales prior to commercial production were credited against capitalized project costs.

Income Statement Q3 2013

Revenues 2 $33.1 M

Cost of sales

Production costs $30.4 M

Depreciation and depletion $2.9 M

Loss from mine operations $0.2 M

G&A $6.9 M

Exploration and evaluation $1.0 M

Net finance costs $3.7 M

Net loss for the period $11.8 M

Sustaining capex spent: C$136 M

(2013 budget: C$192 M)

Commercial Production period

(September):

24,700 oz sold during commercial

production period

Total cash costs of US$1,214/oz

gold sold 1

Average realized price of

US$1,340/oz 1

Average realized margin of

US$126/oz 1

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Conventional Milling Process

Primary Crusher 90,000 tpd

Mine Trucks

Secondary Crushers (2) 67,000 tpd

Pebble Crushers (2) 73,000 tpd

To Market

Gold Doré Bars

Gold Furnace

Gold Electrowinning

Carbon Stripping

To Gravity Circuit

To Gravity Circuit

Stockpile SAG Mills (2) 55,000 tpd

Ball Mills (2) 55,000 tpd

CIP

Leach

Tailings

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Grade Control DDH Block model 40x40m drill spacing RC GC 20X10m & 10X10m drill spacing

< 0.3

< 0.5

< 0.8

< 2.0

> = 2.0

Block Gold Grade (g/t)

Be

nc

h 6

25

2m

B

en

ch

62

40

m

Pit Contour at July 31, 2013

Grade Control Data Limit

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Grade Control DDH Block model 40x40m drill spacing RC GC 20X10m & 10X10m drill spacing

Be

nc

h 6

22

8m

< 0.3

< 0.5

< 0.8

< 2.0

> = 2.0

Block Gold Grade (g/t)

Pit Contour at July 31, 2013

Grade Control Data Limit

RC 40X10m

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Focus on health and safety of our employees, the well-being of

our community and the protection of the natural environment

Hiring in the region, giving priority to local Aboriginal communities:

604 full-time employees*

93% of workforce from region

25% are Aboriginals

Scholarship and job training

Supporting local communities

Business opportunities

Participation in municipal development

Corporate philanthropy

NORTHERN

ONTARIO

38%

COCHRANE

24%

COCHRANE

AREA

31%

REST OF

ONTARIO

3%

4% OTHER

Corporate Responsibility

WORKFORCE ORIGIN

* As of September 30, 2013.

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Analyst Coverage (16)

Initiating

Research Firm Analyst

07.06.11 Haywood Securities Kerry Smith

07.07.09 Paradigm Securities Don Blyth/Don MacLean

07.08.07 Raymond James Phil Russo

07.11.26 National Bank Financial Steve Parsons

07.12.20 Macquarie Capital Markets Mike Siperco

08.01.14 Canaccord Genuity Rahul Paul

08.07.14 TD Securities Dan Earle

08.09.04 RBC Capital Markets Dan Rollins

08.11.06 BMO Capital Markets John Hayes

09.06.17 Laurentian Bank Securities Eric Lemieux

10.05.19 CIBC World Markets Cosmos Chiu

10.07.22 Credit Suisse Securities Anita Soni

11.07.15 Bank of America Merrill Lynch TBA

13.04.16 Scotia Capital Leily Omoumi

13.08.14 Desjardins Capital Markets Michael Parkin

13.11.12 Beacon Securities Michael Curran

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Total cash costs per gold ounce sold Total cash costs per gold ounce 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 utilizes this metric as an important tool to monitor cost performance.

Total cash costs per gold ounce include production costs such as mining, processing, refining and site

administration, 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. 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.

Gold ounces sold exclude pre-commercial production ounces (prior to September 1, 2013) as these are credited

against capitalized project costs.

Non-IFRS Financial Performance Measures

2013 2012 2013 2012

Production costs 30,363$ -$ 30,363 -

Share-based compensation (377) - (377) -

Silver sales - - - -

Total cash costs 29,986$ -$ 29,986$ -$

Gold ounces sold 24,700 - 24,700 -

Total cash costs per gold ounce sold 1,214$ -$ 1,214$ -

Three months ended

September 30

Nine months ended

September 30

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Average Realized Price and Average Realized Margin Average realized price and average realized margin per ounce sold are financial measures with no standard

meaning under IFRS. Management and investors use these measures to better understand the gold price and

margin realized throughout a period. Average realized margin represents average realized price per gold ounce

less total cash costs per ounce.

Average realized price and average realized margin is intended to provide additional information to investors and

does not have any standardized definition under IFRS and should not be considered in isolation or as a substitute

for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure

differently.

Non-IFRS Financial Performance Measures

2013 2012 2013 2012

Revenues from gold sales 33,088$ -$ 33,088 -

Gold ounces sold 24,700 - 24,700 -

Average realized price 1,340$ -$ 1,340$ -$

Less: Total cash costs per gold ounce sold (1,214) - (1,214) -

Average realized margin per gold ounce sold 126$ -$ 126$ -$

Three months ended

September 30

Nine months ended

September 30

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Michael Kenyon Executive Chairman

Paul Martin Interim Chief Executive Officer

James Mavor Interim Chief Financial Officer

Pierre Beaudoin Chief Operating Officer

Julie Galloway Sr VP General Counsel &

Corporate Secretary

Derek Teevan Sr VP Corporate &

Aboriginal Affairs

Pat Donovan VP Corporate Development

Rachel Pineault VP HR & Aboriginal Affairs

James Robertson VP Environment &

Sustainability

Drew Anwyll MGM/Director of Operations

Andrew Croal Director Technical Services

Laurie Gaborit Director Investor Relations

Alberto Heredia Controller

Jean-Francois Metail Director Reserves and Resources

Bill Snelling Director Corporate Systems & Controls

Rickardo Welyhorski Director Mineral Processing

Charles Hennessey Process Plant Maintenance Manager and

Deputy Mine General Manager

Joshua Hurrell Acting Mine Manager - Chief Geologist

Mike Papadakis Process Plant Manager

Peter Crossgrove

Louis Dionne

Robert E. Doyle

André Falzon

Jonathan Rubenstein

Graham Wozniak

Ingrid Hibbard

Michael Kenyon

Alex G. Morrison

Management & Directors Management

Directors

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Paul Martin Interim Chief Executive Officer

Email: [email protected]

Phone: 416.304.0800

Laurie Gaborit Director Investor Relations

Email: [email protected]

Phone: 416.304.0800

www.detourgold.com

Contact Information

Dgc 13 12_03-04_scotia mining conference

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Transcript of Dgc 13 12_03-04_scotia mining conference