Results from the first eight holes drilled by Seabridge (TSX:
SEA)(NYSE Amex: SA) at the Iron Cap target have confirmed a new,
large potentially bulk minable deposit at KSM which could
substantially improve project economics. Results to date include
wide intercepts of gold, copper and silver grades above the KSM
average. Infill drilling will now proceed at Iron Cap with the aim
of establishing new proven and probable reserves to be included in
mine plans for the project.
Seabridge President Rudi Fronk commented that "results from our
eight holes and five holes drilled by previous operators have
identified a new deposit that is at least 900 meters in strike
length, 400 meters wide and up to 350 meters thick, located
immediately adjacent to the Mitchell zone (see attached maps). What
is most encouraging is that Iron Cap appears to have zones of
higher grade copper which could be blended with ore from Mitchell
to maintain our targeted 0.20% average copper grade to the mill.
This average head grade is important because it generates a higher
grade concentrate without sacrificing recoveries, which in turn
commands better smelter returns and reduces shipping costs. The
current mine plan calls for the early development of the more
distant Kerr and Sulphurets zones to maintain copper head grades to
the mill. Sequencing Iron Cap before Kerr and Sulphurets could have
multiple potential benefits including lower operating and capital
costs, deferring significant expenditures and extending mine life."
Results from Seabridge's initial eight holes from Iron Cap are as
follows:
Iron Cap Drill Hole Results
----------------------------------------------------------------------------
Depth From To Length Gold Copper Silver
Drill Hole (meters) (meters) (meters) (meters) (gpt) (%) (gpt)
----------------------------------------------------------------------------
2.9 148.5 145.6 0.60 0.34 9.8
--------------------------------------------------
351.0 200.5 288.0 87.5 0.59 0.13 3.1
IC-10-006 --------------------------------------------------
334.0 351.0 17.0 0.31 0.41 6.9
-------------------------------------------------------------
Cu Zone 38.0 96.0 58.0 0.38 0.53 10.4
----------------------------------------------------------------------------
350.5 2.6 110.6 108.0 0.50 0.26 2.0
IC-10-007 -------------------------------------------------------------
Cu Zone 29.0 109.0 80.0 0.47 0.30 2.0
----------------------------------------------------------------------------
270.0 5.5 270.0 264.5 0.50 0.25 4.2
--------------------------------------------------
incl. 153.9 166.0 12.1 0.86 0.10 2.2
--------------------------------------------------
IC-10-008 incl. 197.0 211.0 14.0 3.09 0.13 1.3
-------------------------------------------------------------
5.5 66.0 60.5 0.37 0.32 3.6
Cu Zone ---------------------------------------------------
117.0 153.9 36.9 0.42 0.38 7.2
----------------------------------------------------------------------------
516.0 4.0 516.0 512.0 0.55 0.18 5.9
--------------------------------------------------
incl. 226.2 265.0 38.8 1.01 0.16 2.7
IC-10-009 --------------------------------------------------
incl. 315.0 460.0 145.0 1.00 0.18 17.7
-------------------------------------------------------------
Cu Zone 483.0 516.0 33.0 0.30 0.52 7.1
----------------------------------------------------------------------------
351.4 193.0 351.4 158.4 0.67 0.26 2.8
IC-10-010 -------------------------------------------------------------
Cu Zone 211.0 283.6 72.6 0.94 0.34 2.7
----------------------------------------------------------------------------
525.0 2.9 452.0 449.1 0.46 0.21 6.8
-------------------------------------------------------------
IC-10-011 incl. 359.0 377.0 18.0 4.44 0.12 1.0
-------------------------------------------------------------
Cu Zone 5.0 51.0 46.0 0.45 0.40 10.9
----------------------------------------------------------------------------
456.0 128.0 351.0 223.0 0.60 0.15 6.2
IC-10-012 -------------------------------------------------------------
Cu Zone 235.0 273.5 38.5 0.94 0.34 2.4
----------------------------------------------------------------------------
IC-10-013 392.5 72.0 203.0 131.0 0.33 0.21 5.9
----------------------------------------------------------------------------
Cu Zone 8.0 44.0 36.0 0.57 0.38 0.7
----------------------------------------------------------------------------
Geologic descriptions of the eight holes are as follows:
IC-10-006: Eastern part of Iron Cap zone, drilled at azimuth 135
degrees with an inclination of minus 70 degrees. The drill pierced
thermally and hydrothermally altered sedimentary rocks with narrow
intrusive and breccia bodies. Silicic alteration with intense
quartz veinlets indicative of shattering by fluid pressure
characterizes the rocks in this drill hole. Sulfide minerals are
abundant and concentrated in the quartz veinlets.
IC-10-007: North central part of Iron Cap, orientated at azimuth
135 degrees and a minus 80 degree inclination. This hole collared
in shattered and veined silicically altered and thermally
metamorphosed sedimentary rocks. It passed into a shattered and
veined intrusion with intense silica alteration. Numerous intervals
of silica altered breccia with abundant sulfide minerals were
recognized within the intrusion.
IC-10-008: Central part of Iron Cap, drilled at azimuth 135
degrees and a minus 80 degree inclination. Extensive silica
alteration of tuffaceous and sedimentary rocks was encountered in
the upper part of the drill hole. Deeper sections of the hole
contained quartz-sericite altered intrusion and silica altered
breccia.
IC-10-009: North central part of Iron Cap, drilled at azimuth
135 degrees and a minus 80 degree inclination. The hole encountered
diorite to monzonite intrusion through most of its length. To about
174 meters, alteration intensity increases beginning with
moderate-intensity chlorite alteration grading to intense silica
and potassic alteration. Below 174 meters, intensity of silica
alteration remains consistent to the end of the hole, with veining
and sulfide abundance decreasing at depth.
IC-10-010: North central part of Iron Cap, drilled at azimuth
135 degrees and a minus 80 degree inclination. The drill hole
encountered breccia through most of its length. The breccia
generally has intensely altered fragments in a matrix of silica and
sulfide minerals, with occasional zones of intense veining
superimposed on the brecciated rock.
IC-10-011: Northeast part of Iron Cap, orientated at azimuth 135
degrees with an inclination of minus 70 degrees. The drill hole
collared in brecciated rock, passed into a section of silicically
altered pyritic sedimentary rocks and then into a fine grained
intrusion. The breccia and intrusive rocks are dominantly sericite
altered. The highest grade gold zone straddles the contact between
the intrusion and sedimentary rocks.
IC-10-012: Far northeast part of Iron Cap, drilled at azimuth
135 degrees and a minus 70 degree inclination. The upper parts of
this drill hole are alternating intervals of sedimentary and
tuffaceous rocks with diorite intrusion. Alteration is principally
silica with abundant stockwork veins. The lower third of the drill
hole encountered silicic and pyritic sedimentary rocks and very
fine grained felsic volcanic rocks.
IC-10-013: North central part of Iron Cap, orientated at azimuth
135 degrees and minus 80 degree inclination. The entire drill hole
displays low intensity alteration in a porphyritic intrusive rock.
The upper third of the hole is dominated by silicic alteration with
patchy potassic alteration. Below a distinct fault zone in the
hole, the lower 2/3 is altered in alternating intervals to
chlorite-rich and silica-rich alteration assemblages.
The above reported drill holes were designed to intersect the
true width of the Iron Cap zone.
The 100% owned KSM project, located near Stewart, British
Columbia, Canada, is one of the world's largest undeveloped
gold/copper projects. Proven and probable reserves for the KSM
project (see news release dated March 31, 2010 for details) using a
gold price of US$850 per ounce and a copper price of US$2.25 per
pound are as follows:
KSM Proven and Probable Reserves
============================================================================
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
----------------------------------------------------------
Mitchell 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
============================================================================
Proven 570.6 0.64 0.17 2.95 58.0
----------------------------------------------------------
Totals Probable 1,032.1 0.56 0.22 2.38 60.2
----------------------------------------------------------
Total 1,602.7 0.59 0.20 2.58 59.4
============================================================================
============================================================
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
============================================================
Exploration activities at KSM are being conducted by Seabridge
personnel under the supervision of William E. Threlkeld, Senior
Vice President of Seabridge and a Qualified Person as defined by
National Instrument 43-101. Mr. Threlkeld has reviewed and approved
this news release. An ongoing and rigorous quality control/quality
assurance protocol is being employed during the 2010 program
including blank and reference standards in every batch of assays.
Cross-check analyses are being conducted at a second external
laboratory on 10% of the samples. Samples are being assayed at Eco
Tech Laboratory Ltd., Kamloops, B.C., using fire assay atomic
adsorption methods for gold and total digestion ICP methods for
other elements.
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 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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