Eleven more core holes drilled this season by Seabridge (TSX:
SEA)(NYSE Amex: SA) at its 100% owned Courageous Lake gold project
continue to increase confidence in the current resource, moving it
towards reserve status. These results are also likely to add to the
multi-million ounce resource and increase its overall grade. In
total, 44 holes will be drilled this season at Courageous Lake
(22,300 meters). Assay results have now been released for the first
22 holes (see also the News Release dated August 5, 2010). The
Courageous Lake project is located in Canada's Northwest
Territories.
Seabridge President Rudi Fronk noted that "our 2008 Preliminary
Assessment on Courageous Lake demonstrated that the FAT deposit has
outstanding economic potential at current gold prices. The issue is
to upgrade the deposit's large inferred resource. We have now
drilled 22 consecutive holes this summer containing significant
widths of gold mineralization well above the resource cut-off
grade. It is increasingly clear to us that most of the Courageous
Lake resource should qualify as reserves in our Preliminary
Feasibility Study scheduled for completion in early 2012."
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 2 kilometers
along strike and about 800 meters 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 the geological model for resource estimation,
unique stratigraphic intervals were defined and labeled as ore
domains 1 though 9 and domain 14. Distribution of gold within a
domain and the surrounding rock is treated differently from other
domains in resource modeling. Domains 3, 4 and 5 contain about 80%
of the gold in the deposit.
Results from the second batch of core drill holes from the current program
are as follows:
----------------------------------------------------------------------------
Drill Hole Depth From To Ore Length Gold Grade
ID (meters) (meters) (meters) Domain (meters) (grams/tonne)
----------------------------------------------------------------------------
286.5 292.3 3 5.8 2.35
--------------------------------------------------------
299.2 208.4 3 9.2 7.02
--------------------------------------------------------
337.0 378.5 3 41.5 3.33
--------------------------------------------------------
402.0 411.0 4 9.0 2.35
--------------------------------------------------------
416.0 441.5 4 25.5 2.92
--------------------------------------------------------
CL-092 825 449.0 457.7 4 8.7 2.47
--------------------------------------------------------
468.5 522.5 4 54.0 1.81
--------------------------------------------------------
537.5 546.5 4 9.0 2.17
--------------------------------------------------------
566.2 589.6 4 and 5 23.4 3.08
--------------------------------------------------------
602.7 611.7 5 9.0 2.79
--------------------------------------------------------
659.9 667.0 5 7.1 4.59
--------------------------------------------------------
763.4 813.2 6 and 9 49.8 1.60
----------------------------------------------------------------------------
244.5 252.4 3 7.9 1.47
--------------------------------------------------------
270.0 278.4 3 8.4 5.44
--------------------------------------------------------
414.0 428.6 4 14.6 2.59
--------------------------------------------------------
CL-093 650 436.1 448.6 4 12.5 1.66
--------------------------------------------------------
463.6 489.5 4 25.9 3.16
--------------------------------------------------------
504.0 519.9 4 15.9 1.12
----------------------------------------------------------------------------
306.8 310.0 4 3.2 3.55
--------------------------------------------------------
CL-094 402 352.3 361.0 4 8.7 4.27
--------------------------------------------------------
377.3 391.0 4 13.7 2.09
----------------------------------------------------------------------------
105.5 108.5 7 3.0 2.68
--------------------------------------------------------
515.9 518.5 6 2.6 5.80
--------------------------------------------------------
526.0 552.0 5 26.0 2.84
CL-095 825 --------------------------------------------------------
567.0 604.5 5 37.5 1.29
--------------------------------------------------------
606.0 625.5 4 19.5 1.62
--------------------------------------------------------
648.0 676.5 4 28.5 3.49
--------------------------------------------------------
701.0 725.0 4 24.0 4.23
--------------------------------------------------------
726.5 741.4 3 14.9 1.17
----------------------------------------------------------------------------
12.0 19.5 4 7.5 1.30
--------------------------------------------------------
34.5 39.0 4 4.5 1.61
--------------------------------------------------------
52.9 57.4 4 4.5 1.36
--------------------------------------------------------
99.0 110.5 4 11.5 3.24
CL-096 275 --------------------------------------------------------
119.5 131.3 4 11.8 2.05
--------------------------------------------------------
144.3 160.8 4 and 3 16.5 1.28
--------------------------------------------------------
219.8 230.3 3 and 2 10.5 6.00
--------------------------------------------------------
256.2 261.0 2 4.8 4.69
----------------------------------------------------------------------------
267.5 313.5 4 46.0 1.95
--------------------------------------------------------
322.7 351.6 4 28.9 2.66
--------------------------------------------------------
357.0 363.0 4 6.0 2.85
--------------------------------------------------------
372.5 380.0 4 7.5 5.21
CL-097 550 --------------------------------------------------------
422.1 441.0 4 18.9 2.19
--------------------------------------------------------
448.5 454.5 3 6.0 1.70
--------------------------------------------------------
481.5 489.0 3 7.5 1.70
--------------------------------------------------------
505.7 519.0 3 13.3 1.46
--------------------------------------------------------
530.1 533.1 3 3.0 1.69
----------------------------------------------------------------------------
98.6 102.5 3 3.9 3.33
--------------------------------------------------------
CL-098 450 246.0 255.6 4 9.6 1.82
--------------------------------------------------------
289.4 295.7 4 6.3 2.02
----------------------------------------------------------------------------
228.8 236.2 4 7.4 1.98
--------------------------------------------------------
251.7 256.2 4 4.5 4.86
--------------------------------------------------------
260.0 264.0 4 4.0 2.20
--------------------------------------------------------
CL-099 475 291.5 300.5 4 9.0 2.41
--------------------------------------------------------
316.5 346.0 4 29.5 2.95
--------------------------------------------------------
362.3 411.5 3 49.3 3.86
--------------------------------------------------------
421.5 434.7 3 13.2 2.81
--------------------------------------------------------
436.6 447.3 2 10.7 2.35
----------------------------------------------------------------------------
209.7 213.1 5 3.4 1.51
--------------------------------------------------------
300.0 312.0 4 12.0 1.39
--------------------------------------------------------
CL-100 399 321.0 325.5 4 4.5 2.63
--------------------------------------------------------
331.0 357.5 4 26.5 3.75
--------------------------------------------------------
376.1 391.0 3 14.9 2.06
----------------------------------------------------------------------------
57.0 69.1 3 12.1 1.32
--------------------------------------------------------
223.5 264.0 4 40.5 4.91
--------------------------------------------------------
CL-101 426 270.0 283.5 4 13.5 1.60
--------------------------------------------------------
291.0 297.0 4 6.0 1.70
--------------------------------------------------------
330.2 339.0 4 8.8 2.63
--------------------------------------------------------
403.5 408.0 5 4.5 1.46
----------------------------------------------------------------------------
272.5 289.5 4 17.0 4.59
--------------------------------------------------------
312.0 315.0 4 3.0 3.51
CL-102 375 --------------------------------------------------------
337.5 340.5 3 3.0 4.72
--------------------------------------------------------
345.0 358.5 3 13.5 4.56
----------------------------------------------------------------------------
Geologic descriptions of the above tabulated holes are as
follows:
CL-092: Drilled at an azimuth of 277 degrees and an inclination
of minus 67 degrees and designed to upgrade inferred resources in
domains 3 and 4 and test domains 5 and 6 from depths of 300 to 600
meters. Domains 3 and 4 were encountered as expected with grades
higher than model predictions. Gold grades in domain 5 were
consistent with expectations. The bottom of the hole found
unexpected mineralization in domains 6 and 9. Results from this
hole will improve grade, upgrade inferred resources and expand
mineralization.
CL-093: Drilled at an azimuth of 277 degrees and an inclination
of minus 59 degrees and designed to test domains 3, 4 and 5.
Geology encountered in this hole on the north end of the deposit
was predominantly felsic tuffs with minor intercalations of
sedimentary units. Alteration was less intense in domain 3 than
expected but gold grades were consistent with the block model.
Domain 4 contained less intense alteration than expected but gold
grades were better than expected. The stratigraphic package of
domain 5 was encountered but alteration and gold grades were not
found.
CL-094: Drilled at an azimuth of 98 degrees and an inclination
of minus 55 degrees and designed to upgrade blocks in domains 4 and
5. Domain 4 was penetrated slightly deeper than anticipated with
sericite and silica alteration less intense than expected; a
narrower mineralized zone contained better than expected grade.
Domain 5 was not encountered, confirming the discontinuous nature
of this zone. The hole confirms domain 4 and helps to limit domain
5 in this area of the resource model.
CL-095: Drilled at an azimuth of 98 degrees and an inclination
of minus 65 degrees and designed as a deep test of domains 3, 4 and
5. Narrow intersections at the top of the hole correspond to
domains 7 and 6 and the intervals are consistent with these
domains. Domain 5 was intercepted earlier than predicted, contained
more intense alteration and quartz veining than expected and
yielded wider and better gold zones. Multiple zones were
anticipated in Domain 4 with the first interval encountering less
intense alteration and lower gold grades than predicted but the
subsequent intervals were intensely altered, wider and higher grade
than expected. Gold grades in domain 3 were encountered at the
contact with domain 4, but overall the intensity of alteration and
gold distribution was less than that predicted in the block
model.
CL-096: Drilled at an azimuth of 98 degrees and an inclination
of minus 50 degrees and designed to upgrade blocks in domains 2, 3
and 4. Lithologies and alteration in domain 4 were encountered as
predicted but grades were more erratic and distributed in more
zones than expected. Domain 3 contained less intense alteration and
lower grades than anticipated. Results for domain 2 were much
better than predicted; the gold grades and intense alteration
encountered were not projected in this part of the deposit.
CL-097: Drilled at an azimuth of 98 degrees and an inclination
of minus 65 degrees to upgrade blocks in domains 3, 4 and 5. Domain
5 was not encountered in its likely position, providing better
control on this zone. Domain 4 was intercepted earlier than
anticipated with mineralization consistent with model predictions.
Domain 3 lithology and alteration were intercepted as
predicted.
CL-098: Drilled at an azimuth of 98 degrees and an inclination
of minus 59 degrees and designed to upgrade resources in domains 3
and 4 and to test domain 5. This drill hole confirmed an
interpretation that the principal mineralized domains are thinning
and pinching out up dip on the north end of the deposit. On the
north end of the FAT deposit, the shallower parts of the
stratigraphic section contain more mixed rock units and fewer
felsic tuff intervals, suggesting a transition into a different
geological environment than in the core of the deposit. The
narrower grade zones in domain 3 and 4 are accompanied by narrower
intervals of characteristic lithologies and less intense
alteration. The absence of domain 5 reflects both its erratic
nature and this transition of environments. Hole CL-098 was drilled
up dip from CL-093 which shows that the expected mineralized zones
recover both width and grade about 100 meters below this drill
hole.
CL-099: Drilled at an azimuth of 98 degrees and an inclination
of minus 57 degrees and designed to test domains 5 and 2 and
upgrade blocks in domains 3 and 4. Domain 5 lithology and
alteration were intercepted slightly shallower than anticipated and
pinched out very rapidly without yielding any significant
mineralized intervals. The lithology and alteration of domain 4
were encountered slightly deeper than anticipated and contained
gold grades as predicted. Alteration and lithology for domain 3
were encountered as predicted but the mineralized zone contained
higher grade over a wider interval than expected. Domain 2
alteration and lithology were intercepted where it was projected.
The model did not predict gold mineralization in domain 2 at this
location but good widths were intersected with grade which will
increase gold resources.
CL-100: Drilled at azimuth 98 degrees and an inclination of
minus 57 degrees and designed to upgrade blocks in domains 3 and 4.
An unexpected narrow but intensely altered interval of domain 5 was
encountered above the target zones. Domain 4 was intercepted at the
predicted depth with the multiple mineralized zones containing
about the expected grades but wider than anticipated. Lithologies
and alteration of domain 3 were not as deep as projected and the
mineralized interval was wider than expected, with gold grades as
anticipated.
CL-101: Drilled at an azimuth of 269 degrees and an inclination
of minus 59 degrees and designed to upgrade blocks in domain 3 and
4. The results from domain 3 show a narrower and lower grade
interval then predicted by the resource model. The multiple
intersections in domain 4 are collectively wider and higher grade
than predicted. Near the bottom of the hole, the intersection of
domain 5 was as expected.
CL-102: Drilled at an azimuth of 95 degrees and an inclination
of minus 49 degrees and designed to upgrade blocks in domains 3 and
4. Lithologies and alteration from domain 4 were intersected where
expected; the mineralized intervals were narrower than predicted
but showed much higher than anticipated grades. Domain 3 contained
a wider and better grade zone than predicted. Results for these
mineral zones should increase the contained metal in the model on
this section.
True thickness of the above reported drill hole intercepts are
approximately 85-90% of the reported interval.
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 and C.E.O.
(416) 367-9292 (416) 367-2711 (FAX) info@seabridgegold.net
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