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North-Alaska Pogo mine gets $30 million expansion

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(Kitco News) - The Pogo Mine is north Alaska will get a 30% expansion for $30 million, said company owners Northern Star (ASX:NST) today.

The processing plant will be expanded, increasing throughput from 1 million tonnes to 1.3 million tonnes.

The project should be finished by 2021 and will be funded from cashflow.

Northern Star Executive Chairman Bill Beament noted that some previous production improvements allowed for more throughput capacity.

"The extensive changes we have implemented and our ongoing optimisation program, including the introduction of long-hole stoping and the use of bigger, more efficient mobile mining equipment, have been highly successful," said Beament.

"We now know that Pogo in the future can comfortably sustain a mining rate of 1.3 million tonnes a year. The progress we are making and the visibility we now have, shows that this is the optimal run-rate for Pogo in terms of sustainability and cost-effectiveness."

In 2020 Pogo is expected to produce 200,000 to 240,000 ounces at an all-in sustaining cost between $830 to $892 (A$1,210 to A$1,300).

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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