Seabridge Gold Inc. (TSX: SEA)(NYSE Amex: SA) announced today that
drilling is now underway at its 100% owned KSM project as
previously announced in the news release of April 19, 2010, this
year's drill program is designed to (i) convert more of the
existing mineral resources to proven and probable reserves, and
(ii) conduct resource definition drilling at the Iron Cap zone
where drilling by previous operators identified the potential for a
fourth large deposit at KSM. Drilling to be conducted at the
Mitchell and Sulphurets during 2010 is expected to increase
reserves by 2 to 3 million ounces of gold. At Iron Cap, Seabridge's
geologists believe that this new zone has the potential to host 250
to 500 million tonnes of mineralized material at grades similar to
the Mitchell zone.
During 2010, Seabridge also expects to complete for submission
KSM's Environmental Assessment Application for review by the
federal and provincial regulatory authorities, Treaty Nations,
First Nations, and the general public. Additional independent
engineering work is also planned at KSM with the goal of completing
an updated Preliminary Feasibility Study in early 2011.
In the Preliminary Feasibility Study completed in March, 2010,
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
============================================================================
Reserve Tonnes
Zone Category (millions) In Situ Average Grades
--------------------------------------------
Silver Molybdenum
Gold (gpt)Copper (%) (gpt) (ppm)
----------------------------------------------------------------------------
Mitchell Proven 570.6 0.64 0.17 2.95 58.0
-----------------------------------------------------------------
Probable 764.8 0.59 0.16 2.93 62.3
-----------------------------------------------------------------
Total 1,335.4 0.61 0.16 2.93 60.4
----------------------------------------------------------------------------
Sulphurets Probable 142.2 0.61 0.28 0.44 101.8
----------------------------------------------------------------------------
Kerr Probable 125.1 0.28 0.48 1.26 Nil
============================================================================
Totals Proven 570.6 0.64 0.17 2.95 58.0
-----------------------------------------------------------------
Probable 1,032.1 0.56 0.22 2.38 60.2
-----------------------------------------------------------------
Total 1,602.7 0.59 0.20 2.58 59.4
============================================================================
KSM Proven and Probable Reserves
============================================================================
Reserve Tonnes
Zone Category (millions) Contained Metal
--------------------------------------------
Gold Copper Silver Moly
(million (million (million (million
ounces) pounds) ounces) pounds)
----------------------------------------------------------------------------
Mitchell Proven 570.6 11.7 2,101 54.1 73.0
-----------------------------------------------------------------
Probable 764.8 14.5 2,722 72.0 105.0
-----------------------------------------------------------------
Total 1,335.4 26.3 4,823 126.1 178.0
----------------------------------------------------------------------------
Sulphurets Probable 142.2 2.8 883 2.0 31.9
----------------------------------------------------------------------------
Kerr Probable 125.1 1.1 1,319 5.1 Nil
============================================================================
Totals Proven 570.6 11.7 2,101 54.1 73.0
-----------------------------------------------------------------
Probable 1,032.1 18.4 4,924 79.1 137.0
-----------------------------------------------------------------
Total 1,602.7 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 Preliminary Feasibility Study 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 is 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
www.seabridgegold.net
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