Seabridge Gold (TSX: SEA)(NYSE Amex: SA) announced today that it
has agreed to sell its remaining interest in the Noche Buena
project to Minera Penmont, S. de R.L. de C.V. ("Penmont") for
US$10.12 million in cash. Closing is expected within the next 30
days. Penmont is a joint venture between Fresnillo plc. and Newmont
USA Limited, a wholly owned subsidiary of Newmont Mining
Corporation.
As background, in late 2008 Seabridge sold its 100% working
interest in the Noche Buena project to Penmont for US$25 million in
cash and a commitment by Penmont to pay Seabridge a further US$5
million upon commencement of commercial production from Noche Buena
and a 1.5% net smelter royalty payable on all production from Noche
Buena sold for US$800 per ounce of gold or greater. On closing of
this transaction, Seabridge will no longer have any interests in
the Noche Buena project.
Seabridge President and CEO Rudi Fronk said: "The cash proceeds
will be used to continue advancing our core projects, KSM and
Courageous Lake, towards feasibility. One of the elements of our
strategy is to fund our core projects through the sale of non-core
assets such as Noche Buena in order to minimize common share
dilution. We hope to make further asset sales over the next several
months. Our aim is to increase our proven and probable gold
reserves, which now stand at 30.2 million ounces, while maintaining
a low number of outstanding shares, which now totals 42.3 million
fully-diluted," he said.
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. KSM 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
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Average Grades
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Reserve Tonnes Gold Copper Silver Molybdenum
Zone Category (millions) (gpt) (%) (gpt) (ppm)
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Mitchell Proven 570.6 0.64 0.17 2.95 58.0
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Probable 764.8 0.59 0.16 2.93 62.3
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Total 1,335.4 0.61 0.16 2.93 60.4
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Sulphurets Probable 142.2 0.61 0.28 0.44 101.8
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Kerr Probable 125.1 0.28 0.48 1.26 Nil
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Totals Proven 570.6 0.64 0.17 2.95 58.0
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Probable 1,032.1 0.56 0.22 2.38 60.2
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Total 1,602.7 0.59 0.20 2.58 59.4
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Contained Metal
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Gold Copper Silver Moly
Reserve Tonnes (million (million (million (million
Zone Category (millions) ounces) pounds) ounces) pounds)
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Mitchell Proven 570.6 11.7 2,101 54.1 73.0
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Probable 764.8 14.5 2,722 72.0 105.0
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Total 1,335.4 26.3 4,823 126.1 178.0
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Sulphurets Probable 142.2 2.8 883 2.0 31.9
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Kerr Probable 125.1 1.1 1,319 5.1 Nil
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Totals Proven 570.6 11.7 2,101 54.1 73.0
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Probable 1,032.1 18.4 4,924 79.1 137.0
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Total 1,602.7 30.2 7,024 133.1 209.9
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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.
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; and (iii) further sales of assets. 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
www.seabridgegold.net
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