With construction at Detour Gold Corporation’s flagship mine in Ontario 75 per cent complete, its CEO is pushing hard to bring the C$1.45 billion ($1.43 billion) project into production by early next year, and he insists his company is not for sale.
The Toronto-based outfit, whose Detour Lake mine is expected to produce 600,000 to 650,000 ounces of gold a year, is often mentioned by industry observers as potential acquisition target for the likes of Barrick Gold Corp, Goldcorp and other top-tier miners.
“No, we have no interest in that,” Detour Chief Executive Gerald Panneton told Reuters when asked if the company is looking to sell itself or the mine. “I personally have a good position in the company, and if someone was knocking on the door today, I would not be a seller of my position,” he added.
Panneton, who spent a dozen years working for the industry leader Barrick, sees Detour becoming a mid-tier producer within the next five years. He is focused on creating shareholder value by getting the Detour Lake mine into production and starting to generate cash flow.
“The only thing people are waiting for is that we finish building the mine and that we start producing gold,” the French-Canadian CEO said.
Detour Lake, located some 900 kilometers (560 miles) north of Toronto, was previously owned by Placer Dome, a gold company later acquired by Barrick. The mine produced a total of 1.8 million ounces between 1983 and 1999, Panneton said.
His company bought the shuttered mine, which had a remaining resource of 1.6 million ounces, for C$75 million in 2006. At the time Panneton saw the potential to build Detour Lake into a 5 million to 10 million ounce project.