New Survey Yields 1.2 Million Ounces of Gold Discovery at Pogo Mine in Interior Alaska

A recent survey into the Pogo Mine, a large gold mine located in Interior Alaska, has yielded a new discovery of at least 1.2 million ounces of gold.

Chris Kennedy, general manager of the Pogo Gold Mine, as initially reported by the Fairbanks Daily News-Miner, said ongoing exploratory drilling has yet to the reach the bottom of the deposit. He believed, however, that their discovery could just be a part of a bigger one.

"It's just a hunch, but I kind of look at it as an iceberg," Mr Kennedy said, claiming the deposit could reach out another half-mile, thus signifying their current find as "just a small portion of a much more significant discovery."

Fairbanks Daily News-Miner reported the ongoing exploration program at the remote underground mine which is located about 38 miles northeast of Delta Junction will continue this summer and likely into 2013.

Officials at the Pogo Gold Mine said the recent discovery could extend the project life of the mine by more than two years, or until at least 2019. Earlier, the Pogo Gold Mine planned to continue mining operations until 2017.

"It's really exciting for us," Mr Kennedy said, noting the latest find increases Pogo Gold Mine's known reserves by more than 20 per cent.

The Pogo Gold Mine, which began extracting gold in 2006, expects its 2 millionth ounce gold production sometime this summer, Mr Kennedy added.

The Pogo Gold Mine, which produces around 400,000 ounces of gold per year, initially had an anticipated operating life of 10 years, which had been repeatedly extended due to the exploration of nearby gold deposits. It is the most productive gold mine in Alaska.

Sumitomo Metal Mining and Sumitomo Corp. of Japan own and operate it after the Canadian mining company, Teck Resources Limited, sold its 40 per cent share in the project for $245 millions in 2009.