Seabridge Gold (TSX: SEA)(NYSE Amex: SA) announced today that,
further to its news release of January 11, 2010, an updated
National Instrument 43-101 Technical Report has been filed on SEDAR
for its KSM project setting forth an increase in measured and
indicated gold resources of 13% to 38.9 million ounces and copper
resources of 17% to 10.0 billion pounds. The Company also reported
today that it has filed a preliminary short form base shelf
prospectus with the securities commissions in each of the provinces
of Ontario, Alberta and British Columbia, and a corresponding
registration statement with the United States Securities and
Exchange Commission (SEC).
Seabridge President and CEO Rudi Fronk noted that the updated
KSM resource marks another year of successfully increasing gold
ownership per common share -- the Company's principal objective.
"Over the past six years, our total measured and indicated gold
resources have grown by 431% while shares outstanding have
increased by only 36%. We are now examining additional work
programs for our two core assets, KSM and Courageous Lake, which
have the potential to increase gold ownership per share in 2010.
The shelf prospectus will provide the Company with financial
flexibility to fund such programs. Our shareholders can take
comfort in the fact that any additional equity financing will only
be undertaken if we are confident that it is likely to increase
gold resources per common share and add shareholder value by moving
our core assets towards feasibility".
The following table summarizes the updated mineral resource
estimates for the Mitchell, Sulphurets and Kerr zones at the KSM
project using a 0.50 gram per tonne (g/t) gold equivalent cut-off
grade:
KSM Mineral Resources at 0.50 g/t Gold Equivalent Cutoff-Grade
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----------------------------------------------------------------------
Measured Mineral Resources
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Zone Tonnes (000) Au (g/t) Au Ozs (000) Cu (%) Cu Lbs (millions)
----------------------------------------------------------------------
Mitchell 659,700 0.64 13,574 0.17 2,472
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Sulphurets No measured resources
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Kerr No measured resources
----------------------------------------------------------------------
----------------------------------------------------------------------
Total 659,700 0.64 13,574 0.17 2,472
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----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
Indicated Mineral Resources
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------------------------------------------------------------
Zone Tonnes (000) Au (g/t) Au Ozs (000) Cu (%) Cu Lbs (millions)
----------------------------------------------------------------------
Mitchell 1,080,900 0.58 20,156 0.17 4,050
----------------------------------------------------------------------
Sulphurets 159,000 0.63 3,221 0.28 981
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Kerr 237,500 0.26 1,985 0.48 2,513
----------------------------------------------------------------------
----------------------------------------------------------------------
Total 1,477,400 0.53 25,362 0.23 7,544
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----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
Measured plus Indicated Mineral Resources
------------------------------------------------------------
------------------------------------------------------------
Zone Tonnes (000) Au (g/t) Au Ozs (000) Cu (%) Cu Lbs (millions)
----------------------------------------------------------------------
Mitchell 1,740,600 0.60 33,730 0.17 6,522
----------------------------------------------------------------------
Sulphurets 159,000 0.63 3,221 0.28 981
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Kerr 237,500 0.26 1,985 0.48 2,513
----------------------------------------------------------------------
----------------------------------------------------------------------
Total 2,137,100 0.57 38,936 0.21 10,015
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----------------------------------------------------------------------
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----------------------------------------------------------------------
Inferred Mineral Resources
------------------------------------------------------------
------------------------------------------------------------
Zone Tonnes (000) Au (g/t) Au Ozs (000) Cu (%) Cu Lbs (millions)
----------------------------------------------------------------------
Mitchell 537,000 0.44 7,597 0.14 1,657
----------------------------------------------------------------------
Sulphurets 144,000 0.50 2,317 0.16 511
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Kerr 76,100 0.20 489 0.30 503
----------------------------------------------------------------------
----------------------------------------------------------------------
Total 757,100 0.43 10,403 0.16 2,671
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The updated NI-43-101 Technical Report was prepared by Resource
Modeling Inc., an independent consulting firm under the direction
of Michael J. Lechner, Licensed Registered Geologist (Arizona)
#37753, P.Geo. (British Columbia) #155344, AIPG CPG #10690 and a
Qualified Person under NI-43-101. The final reported resources for
KSM differ slightly from those contained in the Company's news
release dated January 11, 2010 due to rounding differences and the
application of a capping limit to copper grades at the Mitchell
Zone. At Mitchell, indicated mineral resources have been reduced by
0.1 million tonnes (less than 0.01%) and inferred mineral resources
have been reduced by 1.4 million tonnes (approximately 0.26%). This
news release has been reviewed and approved by Michael J.
Lechner.
Mr. Fronk noted that the Company's attention is now turning to
its second-largest asset, the Courageous Lake Project. "We
completed a preliminary economic assessment of this project in
early 2008 showing that its economics were marginal at the then
prevailing gold price. Management believes that the Courageous Lake
Project could make a significant contribution to the valuation of
the Company given the increase in the gold price in the past year.
The Company is therefore considering a plan to take the Courageous
Lake Project along a similar development path to the KSM Project,
including additional drilling to upgrade inferred resources, the
commencement of the permitting process and further engineering work
to move towards a preliminary feasibility study."
The shelf prospectus filings, when made final, will allow
Seabridge to make offerings of common shares up to an aggregate
total of Cdn$100 million during the 25-month period that the final
short form base shelf prospectus remains effective. Securities may
be offered separately or together, in amounts, at prices and on
terms to be determined based on market conditions at the time of
sale and set forth in an accompanying shelf prospectus supplement
and, subject to applicable regulations, may include at-the-market
transactions, private placements, public offerings or strategic
investments. The net proceeds from the sale of the securities will
be used for general corporate purposes, including funding work
programs at the Company's KSM and Courageous Lake projects. A copy
of the preliminary short form base shelf prospectus and any shelf
prospectus supplements that may be filed in the future may be found
on SEDAR at www.sedar.com and on EDGAR at www.sec.gov or may be
obtained from the Corporate Secretary, Seabridge Gold Inc., 106
Front Street East, Suite 400, Toronto, Ontario, M5A 1E1, Canada,
telephone 1-416-367-9292.
A registration statement relating to these securities has been
filed with the United States Securities and Exchange Commission,
but has not yet become effective. These securities may not be sold
nor may offers to buy be accepted prior to the time the
registration statement becomes effective. This news release shall
not constitute an offer to sell or the solicitation of an offer to
buy nor shall there be any sale of these securities in any state in
which such offer, solicitation or sale would be unlawful prior to
the registration or qualification under the securities laws of any
such state.
Seabridge holds a 100% interest in several North American gold
resource projects. The Company's principal assets are the KSM
property located near Stewart, British Columbia, Canada and the
Courageous Lake gold project located in Canada's Northwest
Territories. For a breakdown of Seabridge's mineral resources by
project and resource category please visit the Company's website at
http://www.seabridgegold.net/resources.php.
All resource estimates reported by the Corporation were
calculated in accordance with the Canadian National Instrument
43-101 and the Canadian Institute of Mining and Metallurgy
Classification system. These standards differ significantly from
the requirements of the U.S. Securities and Exchange Commission.
Mineral resources which are not mineral reserves do not have
demonstrated economic viability.
Statements relating to the estimated or expected future
production and operating results and costs and financial condition
of Seabridge, planned work at the Corporation's projects and the
expected results of such work are forward-looking statements within
the meaning of the United States Private Securities Litigation
Reform Act of 1995. Forward-looking statements are statements that
are not historical facts and are generally, but not always,
identified by words such as the following: expects, plans,
anticipates, believes, intends, estimates, projects, assumes,
potential and similar expressions. Forward-looking statements also
include reference to events or conditions that will, would, may,
could or should occur. Information concerning exploration results
and mineral reserve and resource estimates may also be deemed to be
forward-looking statements, as it constitutes a prediction of what
might be found to be present when and if a project is actually
developed. These forward-looking statements are necessarily based
upon a number of estimates and assumptions that, while considered
reasonable at the time they are made, are inherently subject to a
variety of risks and uncertainties which could cause actual events
or results to differ materially from those reflected in the
forward-looking statements, including, without limitation:
uncertainties related to raising sufficient financing to fund the
planned work in a timely manner and on acceptable terms; changes in
planned work resulting from logistical, technical or other factors;
the possibility that results of work will not fulfill
projections/expectations and realize the perceived potential of the
Corporation's projects; uncertainties involved in the
interpretation of drilling results and other tests and the
estimation of gold reserves and resources; risk of accidents,
equipment breakdowns and labour disputes or other unanticipated
difficulties or interruptions; the possibility of environmental
issues at the Corporation's projects; the possibility of cost
overruns or unanticipated expenses in work programs; the need to
obtain permits and comply with environmental laws and regulations
and other government requirements; fluctuations in the price of
gold and other risks and uncertainties, including those described
in the Corporation's Annual Information Form filed with SEDAR in
Canada (available at www.sedar.com) for the year ended December 31,
2008 and in the Corporation's Annual Report Form 20-F filed with
the U.S. Securities and Exchange Commission on EDGAR (available at
www.sec.gov/edgar.shtml).
Forward-looking statements are based on the beliefs, estimates
and opinions of the Corporation's management or its independent
professional consultants on the date the statements are made.
ON BEHALF OF THE BOARD
Rudi Fronk, President & C.E.O.
Contacts: Seabridge Gold Inc. Rudi P. Fronk President and C.E.O.
(416) 367-9292 (416) 367-2711 (FAX) info@seabridgegold.net
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