Major resource boost for Detour Gold

Vancouver – A whopping 243% increase in measured and indicated resource has been tabled by Detour Gold (DGC-T, DRGDF-O) for its Detour Lake gold project in northeastern Ontario’s Abitibi greenstone belt.

Since its previous resource estimate in late 2006, the company incorporated more than 49,000 metres of additional drill data into its study leading to the new measured and indicated tally of 89.9 million tonnes of 1.67 grams gold per tonne for 4.83 million contained oz. using US$575 per oz. gold and with the grade capped at 20 grams gold.

A further 63.3 million inferred tonnes of 1.49 gram gold was also tabled for an additional 3 million contained oz. – up about 50% from last year.

Besides the additional drill data, Detour also attributes the resource boost to the discovery of additional mineralization in the hanging wall (north of the 200-metre wide mineralized corridor) and expansion of the modeled pit shell based on a higher gold price (US$575 versus US$450).

Detour Gold’s resource study is based on a modeled open pit operation operating at about 20,000 tonnes per day. The conceptual pit has a 6.1-to-1 strip ratio and a cut-off grade of 0.64 gram gold.

The company has initiated a feasibility study on the project that is anticipated by the end of 2008.

The project area includes the past producing Detour Lake mine operated by Placer Dome, now part of Barrick Gold (ABX-T, ABX-N), from 1983-1999 producing about 1.8 million oz. gold.

Detour Gold purchased the project from Pelangio Mines (PLG-T, PLGOF-O) in early 2007, after completing its initial public offering, for $5 million plus 20 million shares.

The company also has 50% of the adjacent Block A ground – a joint venture with Trade Winds Ventures (TWD-V, TWDIF-O). Trade Winds is planning to spin out all its Detour Lake area assets into a new public company.