Vancouver — Partners
Teck Cominco, the operator and 40% owner, had halted construction in May when one of the discharge permits was questioned. The Northern Alaska Environmental Center filed an appeal, citing concerns about contamination of the Goodpaster River drainage area. The appeal was filed after the U.S. Environmental Protection Agency gave the discharge permit to the joint venture.
Immediately after the appeal was filed, Teck Cominco halted construction and agreed to take protective measures.
Teck and Sumitomo had completed the final feasibility study and production program for the underground mine. Startup is now slated for March 2006; full production, five months later.
The 2,500-ton-per-day operation is expected to produce 350,000-500,000 oz. gold annually over a lifespan of 10 years. Teck budgeted US$75 million for development spending in 2004, most of which was earmarked for Pogo.
Pogo has reserves of 7.7 million tons grading 0.48 oz. gold per ton. Resources include 800,000 tons at 0.26 oz. gold in the indicated category and 1.4 million tons grading 0.49 oz. gold in the inferred.
A 49-mile road being built from the mine site to the Richardson Highway is expected to be completed this September.
Projected capital costs have risen 12% since late 2002 (the time of the interim feasibility study), from US$250 million to US$280 million. The causes are a weaker U.S. dollar and higher steel and oil prices.
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