Northern Star Resources has taken control of operations at the Pogo gold project in Alaska, United States after completing its acquisition of the asset.
The Perth-based company agreed to acquire the project from Sumitomo Metal Mining (85 per cent) and Sumitomo Corp (15 per cent) for $US260 million ($347 million) in August.
Northern Star completed the deal last week and is now in the process of converting Pogo’s 4.1 million ounce (Moz) gold inventory to JORC status.
Pogo is in Alaska’s Tintina Mineral Belt, a metal province that includes a 200km wide, 1200km long arc stretching across much of the state through to Canada’s Yukon territory.
The underground operation has produced 3.8Moz at an average mine grade of 13.6 grams per tonne over the past 12 years. Its average annual production has been 300,000oz.
Northern Star’s 2019 financial year guidance has been increased to 850,000oz–900,000oz at costs of $1050–$1150 with the Pogo acquisition.
The company seized the opportunity to acquire Pogo because the asset meets all of the company’s key criteria, which centre on maximising financial returns by owning and investing in Tier 1 projects and jurisdictions.
Chairman Bill Beament commented, “On behalf of Northern Star, I would like to thank Sumitomo for their assistance and the outstanding condition in which they have left the Pogo mine.”
Northern Star plans to invest in growing the resources and reserves at Pogo in a similar way to the successful strategy used at its Western Australian gold mines.