There are no official estimates for the DRL, since it hasn't been formally studied since the 80s. Basically, the rule of thumb that I used to calculate the present cost was to determine inflation by comparing the final cost of the Sheppard Subway to the mid-80s projected cost. When they were estimated, Sheppard to Vic Park and the DRL were expected to have similar costs, about $500 million. Since then, the cost of subway construction in Toronto has undergone significant inflation, both legitimate and, in my opinion, wildly illegitimate. Since Sheppard to Don Mills cost about a billion in the 90s, and going to Vic Park would be about an additional 20%, an estimate of $2 billion for Pape to Spadina seems very reasonable. These estimates also include the cost of a new yard, which might be avoidable.
The great advantage of the DRL compared with a Queen Street subway line is that it is far less complex to construct. Much of the alignment is along the surface, in the rail corridor east of Union Station, and to the west of Spadina (depending on the final route chosen). In the rail corridor, it's as simple as laying down tracks. The right-of-way has an abundance of unused space that could comfortably accommodate two subway tracks. Stations could be simple surface structures. There's no reason why it shouldn't be possible to build them for under $5 million. Furthermore, the route wouldn't require the same amount of bus terminal space as is required at suburban locations.
The most complex part, of course, would be the segment on Front from Spadina to Bay, particularly the station at Union. The TTC's study in the 80s showed a plan for comfortably fitting the additional tracks into the existing station, so it's certainly feasible. Convention Centre and Spadina should be pretty standard urban underground stations. It might even be possible to build the Spadina station above ground on the GO Bathurst North Yard site. The TTC has gone out of its way to make the engineering as complex as possible on all of its new subway lines (i.e. gigantic underground bus terminals, tunnelling under empty fields, etc.) so there shouldn't be a significant difference in the downtown core.
The DRL is a route that is magnificently suited to low-cost engineering, but it will take a None of the publicly-available reports on the new TTC subway lines pay even lip service to keeping engineering costs down. While I'm no right-winger, I'd love to see private companies compete to be responsible for designing and building the route.