Ongoing engineering work to optimize the March 31, 2010 Preliminary
Feasibility Study ("PFS") on Seabridge Gold's (TSX: SEA)(NYSE Amex:
SA) 100% owned KSM Project is generating significant economic
enhancements. New metallurgical test work undertaken by G&T
Metallurgical Services Inc. ("G&T") confirms that a higher
grade copper concentrate can be produced from the project and a
coarser grind can be used without sacrificing copper recoveries. In
total, these improvements are estimated to reduce the PFS Base Case
average annual operating costs by US$12.8 million (about US$20 per
ounce of gold produced) or approximately US$465 million over the
nearly 37 year projected mine life.
Seabridge President and CEO Rudi Fronk noted that G&T's work
continues to demonstrate the excellent metallurgical
characteristics of the KSM project. "These metallurgical results
are just one of a number of initiatives we are pursuing to optimize
project economics. Our plan is to complete a new PFS early next
year. Among other promising initiatives, we are looking at the
possibility of recovering economically significant quantities of
rhenium in the molybdenum concentrate. Next year's PFS should also
include new reserve additions from the Iron Cap Zone which have the
potential to reduce operating costs, defer capital expenditures and
increase mine life."
G&T, an independent laboratory located in Kamloops, British
Columbia, undertook extensive test work on two large composite
samples of Mitchell ore. The program included examination of
primary grinding and regrinding in batch flotation tests followed
by lock-cycle and pilot plant testing. The results indicate that a
primary grind in which 80% of the material is 150 microns or less
in size generates comparable copper recoveries to those projected
from a finer primary grind in which 80% of the material is smaller
than 125 microns (the assumption in the 2010 PFS). A coarser
primary grind is estimated to reduce projected operating costs by
approximately US$0.10 per tonne of ore milled (US$4.3 million per
year).
Improvements made by G&T to the flotation process produced
concentrates grading 28.7% copper at a copper recovery rate of 85%
in locked-cycle testing. By comparison, earlier test work, on
equivalent ore head grades, for the 2010 PFS predicted concentrates
assaying 24.0% copper with similar copper recoveries. If a 3%
improvement in the copper concentrate grade is achieved at KSM, as
these tests suggest is possible, operating costs would be reduced
by approximately US$0.20 per tonne of ore milled compared to the
2010 PFS, resulting in estimated average annual saving of US$8.5
million.
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 --------------------------------------
Zone Category (millions) Gold Copper Silver Molybdenum
(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
--------------------------------------------
Zone Gold Copper Silver Moly
(million (million (million (million
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
---------------------------------------------------------
---------------------------------------------------------
The 2010 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 dated March 31, 2010 for details).
The 2010 metallurgical test work is being undertaken by G&T
Metallurgical Services Inc, under the direction of John Huang.
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
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 including metallurgical
performance; (v) completion of and submission of the Environmental
Assessment Application; and (vi) 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
them 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) metallurgical performance; (xi) reasonable
contingency requirements; (xii) success in realizing further
optimizations and potential in exploration programs and proposed
operations; (xiii) receipt of regulatory approvals on acceptable
terms, including the necessary right of way for the proposed
tunnels; 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 net present
value and internal rates 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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