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09:07 AM EDT, 06/07/2016 (MT Newswires) -- Detour Gold (DGC.TO) said Tuesday it has successfully installed and commissioned a new conveyor system at its flagship Detour Lake gold mine in northeastern Ontario. Detour said the new system, installed in April, is proving to be more efficient and has been tested at faster speeds versus the prior system's maximum rate.
The tonnage shortfall resulting from the April shutdown to install the conveyor (9 days) is expected to be recovered in the second quarter. The company will also continue with additional adjustments to test the upper limits of the conveyor's speed.
"The constraint on the 410-conveyor system has now largely been lifted and the processing plant is performing at higher milling rates," said CEO Pierre Beaudoin. "In May, the plant recorded an impressive 2.0 Mt of ore processed, and while it is too early to confirm these rates for the long term, it is nevertheless a positive indication that we are on the right path to reach our target of processing 23 Mt of ore annually prior to 2019."
The gold production for the second quarter is forecast to be at the mid-point of Detour's quarterly range guidance of 125,000 to 150,000 ounces. The assay results from the 2016 winter drilling program at Lower Detour are expected to be released in July. The drilling program is expected to resume this summer to complete the remaining 25,000 metres of infill drilling at Lower Detour and other targets on the property.
Detour Gold reiterated its 2016 guidance of between 540,000 and 590,000 ounces of gold at total cash costs of US$675 to $750 per ounce sold and all-in sustaining costs of US$840 to US$940 per ounce sold.
DGC shares closed at $30.17 on Monday, nearing its 52-week high of $30.20.
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