Seabridge Gold Inc. (TSX: SEA)(NYSE Amex: SA) announced today that
it plans to spend approximately $17.5 million this year to advance
its 100% owned KSM project. The main initiatives are: (i) drilling
for a potential increase in reserves; (ii) exploring for additional
resources at the new Iron Cap zone; (iii) continuing optimization
work on the project's Preliminary Feasibility Study ("PFS") and
(iv) preparing an Environmental Assessment Application ("EAA") and
engaging Aboriginal Peoples on project development.
Seabridge President and CEO Rudi Fronk noted that the completion
of the KSM PFS "successfully converted most of the project's
measured and indicated resources to proven and probable reserves.
However, there remain a number of opportunities to enhance the
value of KSM and we will pursue many of them in the current
year."
This year's objectives include:
-- Additional definition drilling intended to convert more of the existing
mineral resources to proven and probable reserves. Opportunities exist
at the Kerr, Sulphurets and Mitchell zones. The objective of the 2010
program is to increase reserves by 2 to 3 million ounces of gold.
-- Resource definition drilling at the Iron Cap zone where drilling by
previous operators identified the potential for a fourth large deposit
at KSM. Seabridge's geologists believe that the Iron Cap zone has the
potential to host an additional 250 to 500 million tonnes of mineralized
material at grades similar to the Mitchell zone.
-- Complete for submission KSM's EAA for review by the federal and
provincial regulatory authorities, Treaty Nations, Aboriginal
organizations and the general public. The closer a project is to final
permits, the more valuable the project typically is to a partner or an
acquiring company as risks and lead times to production have been
reduced.
-- Additional independent engineering work at KSM with the goal of
completing an updated PFS in early 2011. The updated PFS could include
engineering improvements and additional reserves to the extent
identified in the program.
In the PFS, Mineral Reserves for the KSM project were estimated
using a gold price of US$850 per ounce, a copper price of US$2.25
per pound and are stated as follows (see news release dated March
31, 2010 for details):
KSM Proven and Probable Reserves
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In Situ Average Grades
-----------------------------------------
Reserve Tonnes Gold Copper Silver Molybdenum
Zone Category (millions) (gpt) (%) (gpt) (ppm)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Proven 570.6 0.64 0.17 2.95 58.0
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Mitchell Probable 764.8 0.59 0.16 2.93 62.3
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Total 1,335.4 0.61 0.16 2.93 60.4
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Sulphurets Probable 142.2 0.61 0.28 0.44 101.8
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Kerr Probable 125.1 0.28 0.48 1.26 Nil
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Proven 570.6 0.64 0.17 2.95 58.0
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Totals Probable 1,032.1 0.56 0.22 2.38 60.2
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Total 1,602.7 0.59 0.20 2.58 59.4
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-----------------------------------------------------------
Contained Metal
------------------------------------------------
Gold Copper Silver Moly
(million (million (million (million
Zone ounces) pounds) ounces) pounds)
-----------------------------------------------------------
-----------------------------------------------------------
11.7 2,101 54.1 73.0
------------------------------------------------
Mitchell 14.5 2,722 72.0 105.0
------------------------------------------------
26.3 4,823 126.1 178.0
-----------------------------------------------------------
Sulphurets 2.8 883 2.0 31.9
-----------------------------------------------------------
Kerr 1.1 1,319 5.1 Nil
-----------------------------------------------------------
-----------------------------------------------------------
11.7 2,101 54.1 73.0
------------------------------------------------
Totals 18.4 4,924 79.1 137.0
------------------------------------------------
30.2 7,024 133.1 209.9
-----------------------------------------------------------
-----------------------------------------------------------
Estimated proven and probable reserves of 30.2 million ounces of
gold (1.60 billion tonnes at 0.59 grams of gold per tonne) are
derived from estimated total measured and indicated resources of
38.9 million ounces of gold (2.1 billion tonnes at 0.57 grams of
gold per tonne) including allowances for mining losses and dilution
(see www.seabridgegold.net/KSM-PFS.pdf for details).
National Instrument 43-101 Disclosure
The KSM PFS was prepared by Wardrop, a Tetra Tech Company, under
the direction of Frank Grills, and included the work of other
consultants (see news release of March 31, 2010). The 2010 KSM
exploration program will be under the direction of William E.
Threlkeld, Senior Vice President of Seabridge. These individuals
are Qualified Persons under National Instrument 43-101 and have
approved this news release.
Seabridge holds a 100% interest in several North American gold
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 reserve and 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.
This document contains "forward-looking information" within the
meaning of Canadian securities legislation and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. This information and
these statements, referred to herein as "forward-looking
statements" are made as of the date of this document.
Forward-looking statements relate to future events or future
performance and reflect current estimates, predictions,
expectations or beliefs regarding future events and include, but
are not limited to, statements with respect to: (i) the amount of
mineral reserves and mineral resources; (ii) any potential for the
increase of mineral reserves and mineral resources, whether in
existing zones or new zones; (iii) the amount of future production;
(iv) further optimization of the PFS; (v) completion of and
submission of the EAA; and (v) potential for engineering
improvements. Any statements that express or involve discussions
with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects", "anticipates", "plans", "projects", "estimates",
"envisages", "assumes", "intends", "strategy", "goals",
"objectives" or variations thereof or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are not statements of historical fact and
may be forward-looking statements.
All forward-looking statements are based on Seabridge's or its
consultants' current beliefs as well as various assumptions made by
and information currently available to them. These assumptions
include: (i) the presence of and continuity of metals at the
Project at modeled grades; (ii) the capacities of various machinery
and equipment; (iii) the availability of personnel, machinery and
equipment at estimated prices; (iv) exchange rates; (v) metals
sales prices; (vi) appropriate discount rates; (vii) tax rates and
royalty rates applicable to the proposed mining operation; (viii)
financing structure and costs; (ix) anticipated mining losses and
dilution; (x) metals recovery rates, (xi) reasonable contingency
requirements; (xiii) success in realizing further optimizations and
potential in exploration programs and proposed operations; (xiv)
receipt of regulatory approvals on acceptable terms, including the
necessary right of way for the proposed tunnels; and (xv) the
negotiation of satisfactory terms with impacted First Nations
groups. Although management considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect. Many forward-looking statements are made
assuming the correctness of other forward looking statements, such
as statements of net present value and internal rate of return,
which are based on most of the other forward-looking statements and
assumptions herein. The cost information is also prepared using
current values, but the time for incurring the costs will be in the
future and it is assumed costs will remain stable over the relevant
period.
By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific, and
risks exist that estimates, forecasts, projections and other
forward-looking statements will not be achieved or that assumptions
do not reflect future experience. We caution readers not to place
undue reliance on these forward-looking statements as a number of
important factors could cause the actual outcomes to differ
materially from the beliefs, plans, objectives, expectations,
anticipations, estimates assumptions and intentions expressed in
such forward-looking statements. These risk factors may be
generally stated as the risk that the assumptions and estimates
expressed above do not occur, but specifically include, without
limitation, risks relating to variations in the mineral content
within the material identified as mineral reserves or mineral
resources from that predicted, variations in rates of recovery and
extraction; developments in world metals markets, risks relating to
fluctuations in the Canadian dollar relative to the US dollar,
increases in the estimated capital and operating costs or
unanticipated costs, difficulties attracting the necessary work
force, increases in financing costs or adverse changes to the terms
of available financing, if any, tax rates or royalties being
greater than assumed, changes in development or mining plans due to
changes in logistical, technical or other factors, changes in
project parameters as plans continue to be refined, risks relating
to receipt of regulatory approvals or settlement of an agreement
with impacted First Nations groups, the effects of competition in
the markets in which Seabridge operates, operational and
infrastructure risks and the additional risks described in
Seabridge's Annual Information Form filed with SEDAR in Canada
(available at www.sedar.com) for the year ended December 31, 2009
and in the Corporation's Annual Report Form 40-F filed with the
U.S. Securities and Exchange Commission on EDGAR (available at
www.sec.gov/edgar.shtml). Seabridge cautions that the foregoing
list of factors that may affect future results is not
exhaustive.
When relying on our forward-looking statements to make decisions
with respect to Seabridge, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events. Seabridge does not undertake to update any
forward-looking statement, whether written or oral, that may be
made from time to time by Seabridge or on our behalf, except as
required by law.
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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