Teck and Sumitomo size up Pogo deposit

Teck (TEK-T) and its partner, Sumitomo Metal Mining, have estimated that their Pogo project in east-central Alaska contains just under 4.5 million oz. gold.

The deposit is believed to contain 10.9 million tons of high-grade vein material grading 0.41 oz. gold per ton. The bulk of the material is in the Main Liese zone, which contains 8.8 million tons grading 0.4 oz. gold. The Lower Liese zone contains 2.1 million tons of 0.46 oz. gold.

The mineralization occurs as flat-lying veins, with thicknesses ranging up to 24 ft., and remains open in the lateral directions. The depth to the top of the Main Liese depends on the surface topography; it is as shallow as 350 ft. below the surface. The Lower zone is another 300-500 ft. below the Main zone.

“We believed there was as much as 2 million oz. last year, but this year’s drilling really added to the deposit,” says Klaus Zeitler, senior vice-president for Teck.

Drilling in 1997 significantly expanded the known mineralization to an area covering about 4,000 by 4,000 ft. In all, the partners completed 44,000 ft.

worth of core drilling on the Pogo property during the year.

Teck and Sumitomo believe a third zone of mineralization exists below the Lower Liese. They drilled a 2,000-ft. hole and intersected 70 ft. of gold mineralization grading 0.37 oz. per ton, another 300 ft. below the Lower zone.

The geologists are discussing the implications of this intercept, Zeitler says.

In 1998, Teck and Sumitomo will construct a decline to gain access for underground exploration. Permits for underground exporation are awaited.

Also, the partners intend to drill another 70,000 ft. of core for definition, infill, stepout and condemnation drilling. The partners are also waiting approval from the state for a proposed winter road into the site.

Teck will have a 40% stake in the project. As operator, it must spend US$28 million on exploration, produce a feasibility study by Dec. 20, 2000, and contribute US$33 million to development and construction costs.

Teck takes over the exploration and development of the property from Watts Griffis & McOuat, which has provided exploration services to Sumitomo on the property since 1991. On behalf of Sumitomo, WGM will continue exploring in the nearby Stone Boy area.

In addition, the joint venture added three key claims adjacent to the Pogo property. The claims could be the site of the portal for the proposed decline, Zeitler says.