An independent mineral resource model for Seabridge Gold's (TSX:
SEA)(NYSE Amex: SA) Iron Cap Zone at its 100% owned KSM project
estimates a new indicated resource containing 5.1 million ounces of
gold and 1.7 billion pounds of copper immediately adjacent to the
Mitchell deposit. The indicated resource is flanked by a halo of
inferred resources containing an additional 3.4 million ounces of
gold and 1.3 billion pounds of copper. The Iron Cap resource
estimate was prepared by Resource Modeling Inc. ("RMI") of Stites,
Idaho and will be incorporated into an updated Preliminary
Feasibility Study ("PFS") scheduled for completion in April 2011.
The NI 43-101 compliant global resource estimate is as
follows:
Iron Cap Mineral Resources at 0.50 g/t Gold Equivalent Cutoff-Grade
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Gold Copper
Tonnes Gold (000 of Cu (millions
Resource Category (000) (g/t) ounces) (%) of lbs)
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Indicated 361,700 0.44 5,117 0.21 1,674
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Inferred 297,300 0.36 3,441 0.20 1,310
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Silver Moly
Silver (000 of Moly (millions
Resource Category (g/t) ounces) (ppm) of lbs)
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Indicated 5.4 62,796 47 37.5
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Inferred 3.9 37,278 60 39.3
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A new global resource estimate for the KSM project, including
the Mitchell, Sulphurets and Kerr zones, will be released
shortly.
Seabridge Gold President and CEO Rudi Fronk said "the Iron Cap
resource has exceeded our expectations. Our objective was to book a
five million ounce gold resource in all categories. In fact, we
have achieved more than five million ounces of indicated resources
with a superior copper grade which should help us optimize mine
plans to maintain a favorable copper head grade. We expect that
most of the indicated resource should qualify as reserves in our
new PFS and improve the economics for the KSM project."
RMI estimated gold and copper grades using inverse distance
weighting methods within geologically constrained gold and copper
grade domains that were constructed for the Iron Cap zone. The
grade models were validated visually and by comparisons with
nearest neighbor models. The estimated block grades were classified
into indicated and inferred mineral resource categories based on
mineralized continuity that was determined both visually and
statistically (i.e. variogram ranges) together with the proximity
to drill hole data. To facilitate comparisons with previous
resource estimates, recoverable gold equivalent grades were
calculated using the same $650 gold price with a 70% recovery rate
and a $2.00 copper price with an 85% recovery rate. The cutoff
grade for resource tabulation was set at 0.50 grams per tonne (g/t)
gold equivalent, also consistent with the cutoff grade used for
previous KSM resource estimates.
The resource model for Iron Cap incorporates data from a total
of 51 core holes (41 drilled by Seabridge in 2010 plus 10 holes
drilled by previous operators) totaling about 17,700 meters. Grades
from the 10 holes drilled by previous operators were compared with
nearby holes drilled by Seabridge. The grades of the older holes
were found to be comparable with the newer holes. For example, the
average gold grade of the old and new holes within 50 meters of one
another was 0.43 and 0.45 g/t, respectively. RMI reviewed the
quality assurance/quality control protocols and results from
Seabridge's 2010 drilling program and has deemed that the number
and type of gold and copper standard reference materials
(standards, blanks, and duplicates) were reasonable. Based on the
performance of those standard reference materials, RMI believes
that the Seabridge drill samples are reproducible and suitable for
estimating mineral resources. RMI constructed a preliminary block
model in August 2010 using ten historic and eight 2010 Seabridge
drill holes that had been completed as of that date. After the 2010
drilling campaign was completed, RMI compared the grades from 33
Seabridge core holes that were completed after the preliminary
block model had been constructed. This comparison showed that the
newly obtained drill hole intervals were slightly higher in grade
(gold, copper, silver, and molybdenum) than the estimated
preliminary model blocks. The infill drilling program also
validated and expanded the volume of mineralization that was
established by the initial ten drill holes.
Gold resource estimates included herein were prepared by
Resource Modeling Inc. under the direction of Michael Lechner, who
is independent of Seabridge and a Qualified Person as defined by
National Instrument 43-101. Mr. Lechner is a highly regarded expert
in his field and frequently undertakes independent resource
estimates for major mining companies. Mr. Lechner has reviewed and
approved this news release. The independent technical report
detailing the Iron Cap resource model, plus updated resource
estimates for the Mitchell, Sulphurets and Kerr zones will be filed
on SEDAR at www.sedar.com.
Exploration activities by Seabridge Gold at KSM have been
conducted under the supervision of William E. Threlkeld, Registered
Professional Geologist, Senior Vice President of the Company and a
Qualified Person as defined by National Instrument 43-101. An
ongoing and rigorous quality control/quality assurance protocol was
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 were 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
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.
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
www.seabridgegold.net
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