Results from the 14 core holes drilled this summer at the
Sulphurets deposit, part of Seabridge Gold's (TSX: SEA)(NYSE Amex:
SA) 100% owned KSM Project, are likely to expand resources and
upgrade resource classifications (see attached maps). This new data
should allow for an increase in reserves in the updated Preliminary
Feasibility Study ("PFS") scheduled for early 2011.
Seabridge President Rudi Fronk commented that "this program was
designed to upgrade 68 million tonnes of inferred resources within
the proposed Sulphurets pit to the measured and indicated
categories thereby making them eligible for reserves
classification. The drill results suggest that we have probably
achieved this objective. Furthermore, the drilling encountered new
mineralization which could add to resources and lead to a larger
pit design for the Sulphurets deposit."
Drilling continues at the Iron Cap zone with the aim of
establishing a resource for this new target (see our news release
dated July 26, 2010).
Results of the 14 holes drilled at Sulphurets are as
follows:
2010 Sulphurets Drill Hole Results
----------------------------------------------------------------------------
DEPTH FROM To Length Au Grade Cu Grade
DRILL HOLE (meters) (meters) (meters) (meters) (g/t) (%)
----------------------------------------------------------------------------
121.0 185.0 64.0 0.60 0.13
------------------------------------------------------
S-10-16 351 209.0 240.0 31.0 0.52 0.17
------------------------------------------------------
333.0 343.0 10.0 0.58 0.05
----------------------------------------------------------------------------
188.6 210.0 21.4 0.69 0.29
------------------------------------------------------
S-10-17 390 292.0 357.0 65.0 1.05 0.56
------------------------------------------------------
385.0 390.0 5.0 1.18 0.05
----------------------------------------------------------------------------
31.0 111.0 80.0 0.65 0.34
------------------------------------------------------
S-10-18 271 160.0 176.0 16.0 0.65 0.24
------------------------------------------------------
208.0 271.6 63.6 0.85 0.03
----------------------------------------------------------------------------
19.0 228.0 209.0 0.70 0.08
S-10-19 276 ------------------------------------------------------
259.0 271.2 12.2 0.50 0.05
----------------------------------------------------------------------------
55.0 109.0 54.0 0.46 0.15
S-10-20 270 ------------------------------------------------------
236.0 252.0 16.0 1.57 0.26
----------------------------------------------------------------------------
22.0 97.0 75.0 0.30 0.26
------------------------------------------------------
S-10-21 432 250.0 277.0 27.0 0.50 0.07
------------------------------------------------------
293.0 360.4 67.4 0.67 0.66
----------------------------------------------------------------------------
S-10-22 369 177.6 246.0 68.4 0.64 0.58
----------------------------------------------------------------------------
235.6 304.0 68.4 0.44 0.17
------------------------------------------------------
S-10-23 531 304.0 449.7 145.7 0.70 0.39
------------------------------------------------------
507.0 531.0 24.0 0.73 0.08
----------------------------------------------------------------------------
68.0 118.0 50.0 1.07 0.14
------------------------------------------------------
S-10-24 351 232.0 247.8 15.8 0.82 0.18
------------------------------------------------------
272.0 349.0 77.0 0.55 0.16
----------------------------------------------------------------------------
S-10-25 300 6.5 206.0 199.5 0.56 0.06
----------------------------------------------------------------------------
130.0 145.0 15.0 0.56 0.05
S-10-26 399 ------------------------------------------------------
188.0 322.2 134.2 0.74 0.16
----------------------------------------------------------------------------
213.0 233.0 20.0 0.78 0.14
------------------------------------------------------
S-10-27 508 352.0 372.0 20.0 0.54 0.06
------------------------------------------------------
399.0 496.7 97.7 0.51 0.36
----------------------------------------------------------------------------
S-10-28 300 31.3 266.0 234.7 0.61 0.13
----------------------------------------------------------------------------
105.0 214.0 109.0 0.67 0.06
S-10-29 345 ------------------------------------------------------
284.0 330.3 46.3 0.42 0.06
----------------------------------------------------------------------------
Geologic descriptions of the 2010 Sulphurets drill holes are as
follows:
S-10-16: A 351 meter infill hole on the west end of the
Sulphurets deposit, drilled at 135 degrees azimuth and minus 75
degrees inclination to confirm a strike extension of the Sulphurets
deposit to the west below the current proposed pit limits and to
convert inferred resource blocks to the measured and indicated
category. The hole confirmed the presence of altered volcanic
strata consistent with the lower part of the Sulphurets deposit.
This hole is likely to upgrade inferred resources to higher
categories and extend the pit limits.
S-10-17: A 390 meter infill hole on the west end of the
Sulphurets deposit drilled at 145 degrees azimuth and minus 70
degrees inclination to intercept the projection of two zones of
gold and copper mineralization in the Sulphurets deposit that are
currently classified as inferred resources. Both zones were
intercepted in intense silica alteration with the upper zone
narrower than predicted and the lower zone at the expected width
with higher grades than predicted. Inferred resources are likely to
be upgraded.
S-10-18: Drilled in the west end of the Sulphurets deposit to a
total depth of 271.6 meters at azimuth 145 degrees and inclination
of minus 70 degrees. A portion of the designed Sulphurets pit that
did not contain any resource blocks was targeted by this hole. The
continuation of ore zones from the east was confirmed in silicicly
altered volcanic rocks, extending the gold and copper zones farther
west than previously modeled. This hole is likely to add to
resources.
S-10-19: A 276 meter infill hole at azimuth 145 degrees and
inclination of minus 70 degrees into the west end of the Sulphurets
deposit to target blocks of inferred resources. Alternating
sedimentary and volcanic rocks were encountered with intense silica
alteration and abundant quartz veins with sulfide minerals. This
hole yielded higher gold and copper grades than predicted and
should upgrade these resources from inferred to higher
categories.
S-10-20: A 270 meter hole drilled on the west end of the
Sulphurets deposit at azimuth 145 degrees and inclination of minus
70 degrees. The planned Sulphurets pit is currently limited in this
area because of a large zone of inferred resource blocks which this
hole was designed to upgrade. Sedimentary rocks interleaved with
intrusions and volcanic rocks make up the sulfide and silica rich
portions of this hole. Although the mineral zones were extended
into this area, the intrusions may have been emplaced after the
gold and copper mineralization, reducing the width of the zones.
This hole is likely to upgrade inferred resources to higher
categories and extend the pit limits.
S-10-21: A 432 meter vertical hole into the central part of the
Sulphurets deposit to fill in an interval of inferred blocks above
the main Sulphurets deposit, test the Main Copper zone above the
Sulphurets Thrust Fault and provide geotechnical measurements for
pit slope engineering. The porphyritic monzonite and hornfelsed
rocks characteristic of the Main Copper target contained gold and
copper grades higher than expected. In the upper zone of the
Sulphurets deposit the projected intervals were encountered but
contained lower grades than predicted; the lower Sulphurets zone
was narrower but higher grade than predicted. Inferred resources
are likely to be upgraded.
S-10-22: In the central part of Sulphurets this 369 meter hole
was drilled at azimuth 325 degrees and minus 80 degrees inclination
to target inferred resource blocks within the main Sulphurets
deposit. Although the 68 meter width on the zone was narrower than
expected, gold grades were in line with expectations while copper
grades were substantially higher than the model. Inferred resources
are likely to be upgraded.
S-10-23: A test of the deeper parts of the western limits of the
Sulphurets deposits. This 531 meter hole was drilled at azimuth 145
degrees and inclination of minus 70 degrees to provide resource
information beyond the western limit of the Sulphurets deposit, but
within the designed pit shell. Three expected mineral zones were
encountered with gold and copper grades typical of the Sulphurets
deposit. Both the resource and reserve estimates should be expanded
by these results.
S-10-24: A 351 meter hole drilled beyond the previous western
limits of the Sulphurets deposit at azimuth 145 degrees and minus
70 degrees inclination to test the gap between the Sulphurets
deposit and the Canyon target, which are thought to be a continuous
zone separated by lack of drilling. An extensive section of altered
sedimentary rock was encountered in this drill hole with intense
silicic alteration and abundant sulfide minerals. Results in this
hole demonstrate the continuity between Sulphurets and Canyon zones
and should increase resources and extend the planned Sulphurets
pit.
S-10-25: Drilled 303 meters at azimuth 145 degrees and
inclination of minus 70 degrees between the Sulphurets and Canyon
zones to fill in the gap between these two targets. Sulfide-bearing
and intensely altered volcanic and sedimentary rocks were again
intersected in this drill hole. Results continue to confirm the
continuity of the Sulphurets and Canyon zones.
S-10-26: A 399 meter hole on the eastern margin of the Canyon
zone at 145 degrees azimuth and inclination of minus 70 degrees to
expand the western limits of the Canyon zone and support the
interpretation of continuity with the Sulphurets deposit. Abundant
sulfide minerals and alteration correlate with the projection of
the Canyon zone. Results will expand the Canyon target and
eliminate the unclassified gap with the Sulphurets deposit.
S-10-27: A 508 meter hole in the southwest part of the
Sulphurets deposit drilled at azimuth 025 degrees and inclination
of minus 70 degrees to provide geotechnical measurements for the
north side of the Sulphurets pit design. The upper mineral zones in
this hole contain lower gold and copper grades than anticipated but
this is well outside of the pit limits. The lower mineral zone
contains gold and copper grade as expected.
S-10-28: A 300 meter down dip off-set on the Canyon zone drilled
at azimuth 145 degrees and inclination of minus 70 degrees to
expand the projected dip of the Canyon zone and demonstrate that
its scale and continuity is consistent with the Sulphurets deposit.
Abundant quartz-sulfide veins are characteristic of this hole, with
the most intense veining on the projection of the Canyon mineral
zone. Results are consistent with Sulphurets grades and should
expand this deposit.
S-10-29: This 345 meter hole to the southwest of the Canyon zone
at azimuth 145 degrees and inclination of minus 70 degrees tested
the dip projection of the Canyon zone. Volcanic rocks predominate
this hole with massive sulfide veins encountered within the
projected Canyon zone interval. Broader than anticipated
gold-copper intervals where encountered in this hole at grades
typical of the Sulphurets deposit. Results from this hole
demonstrate that the deposit is open along the southwest strike and
down dip.
The above reported drill holes, with the exception of S-10-21
and S-10-27, were designed to intersect the true width of the
Sulphurets deposit.
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, 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
-----------------------------------------------------------
-----------------------------------------------------------
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. 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 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.
To view the figures included with this press release, please
visit the following link:
http://media3.marketwire.com/docs/sea908figs.pdf
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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