Seabridge Gold Inc. (TSX: SEA)(NYSE Amex: SA) -
An initial assessment of drill data and mine planning from KSM's
new Iron Cap zone suggests that (i) a significant minerals reserve
can be expected from the Iron Cap zone in a new Preliminary
Feasibility Study ("PFS") scheduled for completion next April; (ii)
these additions to reserves, immediately adjacent to the Mitchell
zone, could support a significant increase in annual production;
and (iii) a potential expansion in mine size should substantially
improve project economics.
Seabridge President Rudi Fronk said that "we have now completed
41 core holes and supporting engineering work at Iron Cap. We have
concluded that Iron Cap could make a substantial increase to KSM
reserves. We are therefore examining a redesign of the KSM project
for a graduated increase in throughput to 180,000 tonnes per day, a
50% increase from the PFS released on March 31, 2010. In our view,
the grade, continuity, metallurgy and location of the Iron Cap zone
should enable us to achieve this production expansion over time
while substantially improving projected internal rates of returns
and net asset values. As a result, we now expect to submit our
Environmental Assessment Application following completion of a new
PFS in April 2011."
Since 2008, KSM has been following the same harmonized
Federal/Provincial environmental assessment process which yesterday
resulted in the approval of the nearby Mt Milligan gold-copper
project by the Government of Canada. After two rounds of public
consultation on KSM undertaken by the Federal Government, no
significant concerns have been raised and Seabridge is therefore
confident that KSM, like other well designed projects, will be
approved on its technical merits.
In July 2010, Seabridge released the results of its first eight
core holes drilled at Iron Cap (see News Release dated July 26,
2010). Based on these promising results and five previous drill
holes, Seabridge expanded the Iron Cap drill program in an effort
to define a measured and indicated resource which could be
converted to reserves. An additional 33 holes totaling 12,200
meters were drilled this season (see attached map for hole
locations). Results of these holes will be announced shortly.
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
============================================================================
Reserve Tonnes
Zone Category (millions) In Situ Average Grades
--------------------------------------------
Gold Copper Silver Molybdenum
(gpt) (%) (gpt) (ppm)
============================================================================
Mitchell Proven 570.6 0.64 0.17 2.95 58.0
------------------------------------------------------------------
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
============================================================================
Totals Proven 570.6 0.64 0.17 2.95 58.0
------------------------------------------------------------------
Probable 1,032.1 0.56 0.22 2.38 60.2
------------------------------------------------------------------
Total 1,602.7 0.59 0.20 2.58 59.4
============================================================================
============================================================================
Reserve Tonnes
Zone Category (millions) Contained Metal
--------------------------------------------
Gold Copper Silver Moly
(million (million (million (million
ounces) pounds) ounces) pounds)
============================================================================
Mitchell Proven 570.6 11.7 2,101 54.1 73.0
------------------------------------------------------------------
Probable 764.8 14.5 2,722 72.0 105.0
------------------------------------------------------------------
Total 1,335.4 26.3 4,823 126.1 178.0
----------------------------------------------------------------------------
Sulphurets Probable 142.2 2.8 883 2.0 31.9
----------------------------------------------------------------------------
Kerr Probable 125.1 1.1 1,319 5.1 Nil
============================================================================
Totals Proven 570.6 11.7 2,101 54.1 73.0
------------------------------------------------------------------
Probable 1,032.1 18.4 4,924 79.1 137.0
------------------------------------------------------------------
Total 1,602.7 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. Mr. Threlkeld has reviewed and approved
this news release. 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; (v) completion of and
submission of the EAA; and (v) 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
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) metals recovery rates, (xi) reasonable contingency
requirements; (xiii) success in realizing further optimizations and
potential in exploration programs and proposed operations; (xiv)
receipt of regulatory approvals on acceptable terms, including the
necessary right of way for the proposed tunnels; and (xv) 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 rate 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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