Expert Analysis
Pierre Vaillancourt, Macquarie Capital Markets (6/27/11) "Detour Gold is building the largest gold mine in Canada, with room for expansion. . .overall, we were impressed with the management team, a number of whom are graduates of Barrick Gold, and the progress of work to date with the help of many of the same contractors who worked on Osisko's Canadian Malartic mine. . .ultimately, management believes throughput could be expanded by 50% once steady state production of 60,000 tpd is achieved."
Steven Butler, Canaccord Genuity (6/24/11) "We reiterate our SPECULATIVE BUY rating on Detour Gold following our favorable visit to Detour Lake on June 23, 2011. Our rating is based on superior leverage to higher gold prices, potential for further improvement in project economics. . .rerating potential as Detour Lake is advanced to production, and takeover optionality."
Morning Coffee (6/24/11) "A day after releasing a construction update, Detour Gold held a successful analyst site visit at its Detour Lake gold project in Northern Ontario; Canaccord Genuity Mining Analyst Steven Butler attended the tour and noted the impressive progress the company has achieved since construction commenced in November 2010. Detour Lake has all the trappings for success, including stable political environment, cheap power, local skilled labor and access to the strong NA logistics and working supply chain."
John Hayes, BMO Capital Markets (6/22/11) "Detour Gold announced that construction is progressing well at the Detour Lake gold project, [which] is currently 25% complete: The company's 2011 exploration and drilling budget has been increased to CAD$20M from CAD$14M and includes at-mine, near-mine and regional drilling, as well as geophysical and geochemical work. Included in this work is a 70 km. drilling program (a 20 km. increase over the previously announced 50 km. program) aiming to upgrade inferred resources into M&I resources and reserves. We estimate initial gold production in Q113."
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