Seabridge Gold Inc. (TSX: SEA)(NYSE Amex: SA) - Results from the
final 33 core holes drilled by Seabridge this year at Iron Cap have
confirmed (i) consistent gold, copper and silver mineralization
which is likely to generate an increase in resources and reserves
at KSM; (ii) an expanded size of the deposit; (iii) higher average
metal values than KSM's current reserves which has the potential to
enhance project economics; and (iv) a highly prospective new
exploration target which could have dynamic implications for KSM.
For assay results and hole descriptions see
www.seabridgegold.net/NDec9-10-table.pdf and for a drill hole
location map see www.seabridgegold.net/NDec9-10-maps.pdf.
A total of 46 core holes have now been drilled at Iron Cap.
Every hole has intersected ore grade mineralization over
significant widths. The drill data will now be provided to Resource
Modeling Inc., an independent consulting firm, and the first
NI-43-101 compliant resource estimate for Iron Cap is expected in
January 2011. The drill hole spacing in the heart of the Iron Cap
deposit should be sufficient to allow a significant portion of this
resource to be classified as measured and indicated which could
enable it to qualify as reserves in the updated Preliminary
Feasibility Study ("PFS") scheduled for April 2011.
In the Seabridge news release dated July 26, 2010, the size of
the Iron Cap deposit was estimated to be at least 900 meters in
strike length, 400 meters wide and up to 350 meters thick. The
additional results from the last 33 holes now confirm a deposit
which has a strike length of at least 1,300 meters, a width of at
least 600 meters and an average thickness of 350 meters. In
addition to the down dip potential, Iron Cap remains open on strike
to the northeast and southwest.
Analysis of drill data indicates that the Iron Cap resource is
likely to have a higher metal value than the average KSM grade. For
example, Hole 40, which is mineralized from top to bottom, contains
a 128.5 meter interval grading 1.04 grams per tonne gold and 0.37%
copper. What is most encouraging is that Iron Cap's higher grade
copper zones could be blended with ore from the Mitchell zone to
maintain the targeted 0.20% average copper grade to the mill. This
average head grade is important because it generates a higher grade
concentrate without sacrificing recoveries, which in turn commands
better smelter returns and reduces shipping costs. The current mine
plan calls for the early development of the more distant Kerr and
Sulphurets zones to maintain copper head grades to the mill.
Sequencing Iron Cap before Kerr and Sulphurets could have multiple
potential benefits including lower operating and capital costs,
deferring significant expenditures and extending mine life.
The Iron Cap deposit is a separate but related mineral system
within the KSM district. It is structurally above the Mitchell
deposit in the panel of rocks between the Mitchell and Sulphurets
thrust faults. Iron Cap differs from the Mitchell deposit in that
several intrusions make up the host rock. This higher temperature
environment and its associated potassic alteration have resulted in
the higher metal value at Iron Cap. There is the potential for an
undiscovered, deeper core zone characterized by potassium feldspar,
magnetite and bornite which could be expected to contain
significantly higher metal values than the shallower levels tested
so far at Iron Cap. This year's drill results suggest that this
potential core zone may exist below the current limits of the Iron
Cap deposit. Seabridge intends to pursue this target in next year's
program.
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.
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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