Detour Gold Completes Acquisition of Claims Adjacent to the Detour Lake Project From Conquest Resources
TORONTO, ONTARIO -- (Marketwire) -- 09/27/10 -- Detour Gold Corporation (TSX: DGC) ('Detour Gold' or the 'Company') is pleased to announce that it has completed the previously announced transaction with Conquest Resources Limited ('Conquest') pursuant to which Detour Gold has purchased Conquest's 100% interest in the Aurora and Tie-In claim blocks (the 'Aurora Claims') for $2 million in cash and 100,000 common shares of Detour Gold and has entered into an option and joint venture agreement with Conquest that provides Detour Gold with the option to acquire a 50% interest in Conquest's Sunday Lake claim block (the 'Sunday Lake Claims') by incurring $1 million in exploration expenditures over the next two years. The Aurora Claims and the Sunday Lake Claims are located immediately south and east of the Company's Detour Lake project, respectively.
Both the Aurora Claims and the Sunday Lake Claims remain subject to an interest held by Prism Resources Inc. equal to 7.5% of the net profits from the properties.
Detour Gold has acquired the Aurora Claims to accommodate the infrastructure requirements for the development of its Detour Lake mine. In addition, the Aurora Claims and the Sunday Lake Claims will allow Detour Gold to further expand its interest in what is believed to be a prospective area of this relatively under-explored portion of the Abitibi Greenstone Belt. Detour Gold's land position now totals 514 sq. km.
About Detour Gold
Detour Gold is a Canadian gold exploration and development company whose primary focus is to advance the development of its flagship Detour Lake gold project located in northeastern Ontario towards production. Detour Gold's shares trade on the Toronto Stock Exchange under the trading symbol DGC.
Forward-Looking Information
This press release contains certain forward-looking information as defined in applicable securities laws (referred to herein as 'forward-looking statements'). Specifically, this press release contains forward-looking statements regarding the expansion of Detour Gold's regional exploration program and the prospects of this expanded area of exploration and the advancement of the Detour Lake gold project. 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 actual results, performance or achievements to be materially different from any of 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 2009 annual information form. 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; the estimated timeline for the development of the Detour Lake gold project; the supply and demand for, and the level and volatility of the price of, gold; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; the receipt of necessary permits; 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. 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.
Contacts:
Detour Gold Corporation
Gerald Panneton
President and CEO
(416) 304.0800
Detour Gold Corporation
Laurie Gaborit
Director Investor Relations
(416) 304.0581