The first 11 holes drilled this season by Seabridge Gold (TSX:
SEA)(NYSE Amex: SA) on the FAT deposit at its 100% owned Courageous
Lake gold project have exceeded expectations, increasing confidence
in the current resource and potentially expanding it. The
Courageous Lake project is located in Canada's Northwest
Territories. Drilling continues with another 30 holes planned for
this summer.
Seabridge President Rudi Fronk noted that the primary objective
of this year's Courageous Lake program is to enhance the value of
the project by upgrading its existing resources so that they can
qualify as reserves in a planned Preliminary Feasibility Study.
"The results to date indicate that we are having success upgrading
inferred resources to higher categories. Mineralization is where we
expect it to be, demonstrating that our resource model is
predictive. Furthermore, grades are somewhat better than predicted
by the model and we are also finding new mineralized zones.
Overall, the data suggests that resource ounces and perhaps grade
could increase as a result of this program, in addition to
upgrading resource categories."
The FAT deposit is located geologically in the Slave Province.
The deposit's name is an acronym for its dominant rock type, Felsic
Ash Tuff. This gold occurrence, hosted by Archean rocks, was formed
in a rhyolite/dacite dome complex that measures about 2km along
strike and about 800m of stratigraphic section in width. Although
tuffaceous rocks are the most common in the deposit there are also
clear intervals of clastic and chemical sedimentary rocks and a few
late intrusives.
In constructing a geological model for resource estimation,
unique stratigraphic intervals were defined and labeled as domains
1 though 9 and domain 14. Each domain contains specific and unique
tuff and sedimentary units arranged in particular stratigraphic
sequences. The defined geological domains are relics of the
depositional environment in which they were formed. Consequently,
within these domains the style of hydrothermal alteration, vein
occurrences and sulfide mineralogy are consistent across the length
and breadth of each specific domain. Distribution of gold within a
domain and the surrounding rock is treated differently from other
domains in resource modeling. Although ten separate geological
domains have been recognized in the FAT deposit, domains 3, 4 and 5
contain about 80% of the gold in the deposit.
Results of the first 11 core drill holes from the current
program are as follows:
---------------------------------------------------------------------------
Drill Hole Depth From To Ore Length Au Grade
ID (meters) (meters) (meters) Domain (meters) (g/t)
---------------------------------------------------------------------------
CL-081 285 153.9 156.9 5 3.0 2.26
-------------------------------------------------------
178.1 189.1 5 11.0 1.55
-------------------------------------------------------
213.9 248.5 4 34.6 4.03
-------------------------------------------------------
255.5 283.2 4 27.7 1.36
---------------------------------------------------------------------------
CL-082 237 15.5 23.0 2 7.5 3.05
-------------------------------------------------------
175.1 178.0 3 2.9 6.47
-------------------------------------------------------
182.5 188.5 3 6.0 1.95
-------------------------------------------------------
219.8 228.4 3 8.6 2.64
---------------------------------------------------------------------------
CL-083 306 42.0 67.5 5&4 25.5 1.60
-------------------------------------------------------
91.7 110.3 4 18.6 3.45
-------------------------------------------------------
115.5 141.0 4 25.5 3.53
-------------------------------------------------------
185.4 211.2 4&3 25.8 2.57
-------------------------------------------------------
237.0 270.0 3 33.0 3.18
---------------------------------------------------------------------------
CL-084 324 77.5 80.5 6 3.0 1.19
-------------------------------------------------------
115.5 120.0 5 4.5 1.06
-------------------------------------------------------
123.8 156.0 5 32.2 3.46
-------------------------------------------------------
163.5 169.5 5 6.0 1.14
-------------------------------------------------------
184.1 186.7 5 2.6 1.25
-------------------------------------------------------
253.3 260.8 4 7.5 1.34
-------------------------------------------------------
268.5 313.1 4 44.6 1.38
---------------------------------------------------------------------------
CL-085 315 23.5 33.5 2 10.0 4.15
-------------------------------------------------------
51.0 55.5 2 4.5 2.27
-------------------------------------------------------
226.5 231.0 3 4.5 0.93
-------------------------------------------------------
238.5 252.9 3 14.4 2.19
-------------------------------------------------------
259.8 265.7 3 5.9 6.70
-------------------------------------------------------
303.5 309.5 3 6.0 2.37
---------------------------------------------------------------------------
CL-086 677 206.9 211.6 3 4.7 6.79
-------------------------------------------------------
388.0 433.5 4 45.5 3.54
-------------------------------------------------------
525.4 530.9 4 5.5 1.68
-------------------------------------------------------
569.0 577.1 4 8.1 1.31
-------------------------------------------------------
621.0 623.8 5 2.8 2.35
-------------------------------------------------------
652.5 656.1 5 3.6 5.50
---------------------------------------------------------------------------
CL-087 303 25.6 27.1 6 1.5 6.83
-------------------------------------------------------
216.0 225.0 4 9.0 1.62
-------------------------------------------------------
234.0 238.5 4 4.5 2.09
---------------------------------------------------------------------------
CL-088 567 111.9 140.3 2 28.4 1.96
-------------------------------------------------------
193.0 205.0 3 12 4.42
-------------------------------------------------------
269.9 282.8 3 12.9 1.29
-------------------------------------------------------
327.8 256.0 4 28.2 3.14
-------------------------------------------------------
363.5 369.5 4 6.0 2.32
-------------------------------------------------------
383.0 385.9 4 2.9 7.68
-------------------------------------------------------
438.5 528.9 5 90.4 1.73
-------------------------------------------------------
264.6 272.3 5 7.7 1.01
---------------------------------------------------------------------------
CL-089 300 141.2 168.2 4 27.0 1.65
-------------------------------------------------------
153.2 165.2 4 12.0 2.82
-------------------------------------------------------
180.2 184.7 4 4.5 3.10
---------------------------------------------------------------------------
CL-090 400 264.6 272.3 5 7.7 1.01
-------------------------------------------------------
279.0 291.0 5 9.0 2.47
-------------------------------------------------------
315.1 325.1 4 10.0 2.99
-------------------------------------------------------
347.7 359.1 4 11.4 2.44
-------------------------------------------------------
381.8 398.4 4 16.6 4.94
---------------------------------------------------------------------------
CL-091 475 161.2 166.5 3 5.3 4.37
-------------------------------------------------------
294.9 310.7 4 15.8 1.78
-------------------------------------------------------
346.0 357.3 4 11.3 3.22
-------------------------------------------------------
365.0 381.0 4 16.0 0.89
-------------------------------------------------------
405.7 429.6 4 23.9 2.34
---------------------------------------------------------------------------
Geologic descriptions of the 11 holes are as follows:
CL-081: Drilled at an azimuth of 98 degrees and an inclination
of minus 52 degrees and designed to test the down-dip projection in
domain 5 and fill a gap in domain 4. The only lithology encountered
in the hole was felsic tuff. Alteration of the tuff varied
significantly with the most common being sericite and carbonates.
The geology encountered in domain 4 consisted of coarse tuff and
intense sericite-silica alteration characteristic of this zone with
better grades than expected in the resource model (4.0 g/t versus
2.5 g/t). Textures, alteration and sulfide minerals in domain 5
were indicative of gold mineralization but grades were lower than
expected in the model.
CL-082: Drilled at an azimuth of 277 degrees and an inclination
of minus 60 degrees and designed to in-fill gaps in domains 3 and
4. Due to ground conditions, the hole deviated immediately and did
not fully test these targets. The entire hole was in felsic tuff
with variable intensity of sericite and carbonate alteration. An
unexpected mineralized zone was encountered in domain 2 beyond the
limits of our resource model for this domain. The upper part of
domain 3 was intersected in the drill hole yielding mineralization
and geology consistent with the model.
CL-083: Drilled at an azimuth of 98 degrees and an inclination
of minus 47 degrees and designed to upgrade near surface inferred
resources in domains 5 and 4 and to test domain 3 to a depth of 200
meters. The grade encountered was significantly higher than
predicted, with slightly narrower zones. Alteration and rock types
were consistent with the model, including moderate to intense
sericite alteration and intervals of intense silicic alteration,
especially in domain 4. The bottom 33.0 meter interval grading 3.18
grams per tonne likely represents the eastern margin of domain 3,
with grades better than expected.
CL-084: Drilled at an azimuth of 98 degrees and an inclination
of minus 55 degrees and designed to upgrade shallow inferred blocks
in domains 4 and 5 at relative elevations between 200 and 350
meters. Felsic tuff was the only lithology encountered in this
drill hole with moderate to intense sericite and silica alteration.
The upper 110 meters of the hole corresponded to rock types
associated with domain 5 but with much less lithological variation,
which may indicate the up-dip limits of this zone. In the deeper
part of the drill hole, the felsic tuff is characteristic of domain
4 with well developed imbricated lapilli and distinctive primary
quartz phenocrysts. Grade is distributed at the bottom and the top
of zone 4 and in minor intervals through the center of the
zone.
CL-085: Drilled to replace hole CL-082 at an azimuth of 274
degrees with inclination of minus 65 degrees. This hole also
deviated from plan and did not fully test the target in domains 3
and 4. Geology of this hole was as predicted, felsic tuff with low
to moderate intensity sericite alteration and few quartz veins with
associated silicic alteration. The same unexpected mineralized zone
found in hole CL-082 was encountered and is interpreted to be
domain 2. Grade was also intercepted on the upper margin of domain
3 (14.4 meters at 2.19 gpt) which was not predicted in the resource
model.
CL-086: Drilled at an azimuth of 277 degrees and an inclination
of minus 65 degrees and designed to fill inferred gaps in domains 3
and 4 and test the down dip potential of domain 5. In domain 3, the
tuffs were less intensely altered and sulfide content was low,
indicating that this zone is weakening to the north. The eastern
portion of domain 4 showed the strongest alteration and sulfides
with the remainder of the domain being more erratic. Domain 5 was
characterized by patchy alteration and sulfides in felsic tuffs,
which may indicate the down-dip limits of this zone.
CL-087: Drilled at an azimuth of 95 degrees and an inclination
of minus 50 degrees and designed to fill a potential gap of blocks
in domain 5 (represented in the current model as waste) and an
inferred gap in domain 4. The bottom of zone 5 was intercepted at
the predicted depth and was characterized by fine-grained felsic
tuff with a restricted size range of lapilli fragments. Moderate
intensity sericite and silica alteration was accompanied by
vein-controlled carbonate alteration. Results from this hole
indicate that zone 5 is pinching up-dip. Below 200m the drill hole
passed into domain 4 with the typical lapilli tuff units containing
primary quartz eyes. Sericite and silica alteration is not intense,
with the key mineralization in this part of domain 4 found near the
base of the zone.
CL-088: Drilled at an azimuth of 277 degrees and an inclination
of minus 54 degrees and designed to convert inferred blocks in
domains 2, 3, 4 and 5. Typical FAT lithologies were intersected in
this hole, primarily variably altered felsic tuff with minor
intercalations of sedimentary rocks. Domain 2 was better than
expected. Domain 3 showed continuing strong mineralization along
its margins but the core was weaker than expected. Domain 4
alteration and mineralization were weaker than expected but still
maintained a high-grade core. Domain 5 was consistent with
expectations.
CL-089: Drilled at an azimuth of 98 degrees and an inclination
of minus 50 degrees and designed to fill a gap of shallow inferred
blocks in domains 5 and 4. Lithologies of domain 5 are as expected,
with decreased sericite and silica alteration and increased
chlorite-carbonate alteration. These results indicate that domain 5
has pinched out up-dip. Domain 4 was encountered where expected
showing intense sericite and silica alteration. The alteration
intensity decreases toward the top of domain 4.
CL-090: Drilled at an azimuth of 98 degrees and an inclination
of minus 54 degrees and designed to upgrade blocks in domain 5 and
4. The lithologies of domain 5 were encountered from 263 to 300
meters, exactly as predicted. Grades were as expected. Domain 4
started a few meters earlier than expected at 314 meters and
continued to the end of the hole. The unexpected start of domain 4
may link up with portions of domain 4 above and below that were too
far apart to be interpolated previously. The other mineralized
intercepts in domain 4 correspond well with the model.
CL-091: Drilled at an azimuth of 277 degrees and an inclination
of minus 57 degrees and designed to upgrade inferred resources in
domains 3, 4 and 5 at relative depths of 170 meters, 300 meters and
370 meters respectively. Domain 3 was intersected slightly deeper
than expected at 161 meters, due to some intercalated sediments.
Mineralization was expected to be spotty as this domain is
weakening to the north. Domain 4 was intercepted where expected,
with lithology and alteration indicative of domain 4. Overall
results for this zone exceeded expectations, with wider intercepts
and better grades. Domain 5 was much weaker than expected both in
alteration and grades but a full cut of the zone was not achieved
due to some deviation in the hole.
The above reported drill holes were designed to intersect the
true width of the FAT deposit.
The Courageous Lake project consists of 27,263 hectares (67,366
acres) covering 53 kilometers (33 miles) of a greenstone belt in
Canada's Northwest Territories, including the two kilometer long
FAT deposit which has estimated gold resources as set out below
(see news release of February 28, 2007 for details):
Courageous Lake Estimated Gold Resources at 0.83 Gram Per Tonne
Cutoff
---------------------------------------------------------------------------
Measured Indicated Inferred
---------------------------------------------------------------------------
Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
(000's) (g/T) (000's) (000's) (g/T) (000's) (000's) (g/T) (000's)
---------------------------------------------------------------------------
6,293 2.92 591 53,020 2.14 3,648 93,720 1.98 5,966
---------------------------------------------------------------------------
In March 2008, Seabridge released the results of a Preliminary
Assessment (see news release dated March 10, 2008) in which the
independent consultants concluded that an open-pit mining
operation, with on-site processing, is the most suitable
development scenario for the Courageous Lake project. A base case
scenario was developed proposing a 25,000 tonne per day operation
(9.125 million tonne per year throughput) resulting in a projected
11.6 year operation with average estimated annual production of
500,500 ounces of gold at an estimated average cash operating cost
of US$435 per ounce recovered. The base case scenario utilized
measured, indicated and inferred resources in the mine plan.
Initial capital costs for the project were estimated at US$848
million, including a contingency of US$111 million. The total cost
of gold production (including cash operating costs and total
capital costs over the life of the mine) was estimated at US$590
per ounce.
At a gold price of US$690 per ounce, the base case cumulative
pre-tax net cash flow over the life of the project was estimated at
US$500 million. At a gold price of US$800 per ounce, the cumulative
pre-tax net cash flow over the life of the project was estimated at
US$1.13 billion and at US$1,000 gold pre-tax cumulative net cash
flow was estimated at US$2.27 billion.
Seabridge notes that the Courageous Lake Preliminary Assessment
incorporated inferred mineral resources which are considered too
geologically speculative to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves. Therefore, Seabridge advises that there can be no
certainty that the estimates contained in the Preliminary
Assessment will be realized.
National Instrument 43-101 Disclosure
The 2010 Courageous Lake exploration program is being conducted
under the direction of William E. Threlkeld, Senior Vice President
of Seabridge and a Qualified Person under 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 Courageous Lake drill
program including blank and certified reference standards inserted
by the Company in every batch of assays. Repeats and re-splits of
the sample reject are analyzed at a rate of not less than one
sample in every 25 for each type. Samples are being assayed at Acme
Laboratories, Vancouver, B.C. using fire assay atomic adsorption
methods for gold and total digestion ICP methods for other
elements. Cross-check analyses are being conducted at a second
external laboratory on at least 10% of the samples.
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 reserves and mineral resources by
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 but many of
them relate to estimates and projections prepared in 2007 and 2008.
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) the amount of future
production over any period; (iii) cumulative pre-tax net cash flow
of the proposed mining operation; (iv) capital costs; (v) operating
costs, including credits from the sale of other metals; (vi) mining
rates; (vii) mine life; (vii) planned expenditures; and (viii)
upgrading inferred resources. 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
independent consultants' current beliefs as well as various
assumptions made by them and information available to them on the
date the statements are made. 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) receipt of regulatory approvals on acceptable
terms; and (xiv) 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 cumulative
pre-tax net cash flow, which are based on other forward-looking
statements and assumptions. The cost information is also prepared
using earlier 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 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 including those
described in the December 31, 2009 Corporation's Annual Information
Form filed with SEDAR in Canada (available at www.sedar.com) 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 &
C.E.O. (416) 367-9292 (416) 367-2711 (FAX)
info@seabridgegold.net
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