Detour Gold (DGC.TO) announced it has reached the stage of commercial production at its 100% owned Detour Lake gold project in Ontario, Canada as the project reached an average throughput of in excess of 41,400 tonnes per day for 60 consecutive days. This is higher than the 75% rate of the designed full production capacity of 55,000 tonnes per day. During the last four days before declaring commercial production, the mill was operating at a capacity of 52,900 tpd, which is close to its designed output.
Detour expects to achieve a cash cost of $1,100/oz in this post commercial production stage and is aiming for an output of 270,000 ounces of gold this year.
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Disclosure: The author holds a long position in Detour Gold and has written put options. Please see our disclaimer for current positions.
