Seabridge Gold (TSX: SEA)(NYSE Amex: SA)announced today that an
updated, independent National Instrument 43-101 mineral resource
estimate for its KSM project has increased measured and indicated
gold resources by 16% to 45.3 million ounces. An additional 14.5
million ounces has been classified as inferred resources. The
updated resource estimate was prepared by Resource Modeling Inc.
("RMI") of Stites, Idaho and incorporates the new Iron Cap zone
(see news release dated February 8, 2011) as well as increases at
KSM`s three other deposits.
The following table summarizes the global resource estimate for
KSM:
KSM Mineral Resources at 0.50 g/t Gold Equivalent Cutoff-Grade
Measured Resources
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Gold Copper Silver Moly
Zone Tonnes Gold (000 of Cu (millions Silver (000 of Moly (millions
(000) (g/t) ounces) (%) of lbs) (g/t) ounces) (ppm) of lbs)
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Mitchell 677,600 0.64 13,943 0.17 2,539 3.2 69,713 58 86.6
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Total 677,600 0.64 13,943 0.17 2,539 3.2 69,713 58 86.6
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Indicated Resources
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Gold Copper Silver Moly
Zone Tonnes Gold (000 of Cu(millions Silver (000 of Moly (millions
(000) (g/t) ounces) (%) of lbs) (g/t) ounces)(ppm) of lbs)
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Mitchell 1,069,500 0.59 20,287 0.17 4,007 3.2 110,033 60 141.4
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Sulphure-
ts 199,300 0.63 4,037 0.26 1,142 0.7 4,485 59 25.9
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Kerr 241,200 0.25 1,939 0.47 2,499 1.2 9,306 n/a n/a
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Iron Cap 361,700 0.44 5,117 0.21 1,674 5.4 62,796 47 37.5
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Total 1,871,700 0.52 31,380 0.23 9,322 3.1 186,620 57 204.8
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Measured Plus Indicated Resources
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Gold Copper Silver Moly
Zone Tonnes Gold (000 of Cu(millions Silver (000 of Moly (millions
(000) (g/t) ounces) (%) of lbs) (g/t) ounces)(ppm) of lbs)
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Mitchell 1,747,100 0.61 34,230 0.17 6,546 3.2 179,746 59 228.0
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Sulphure-
ts 199,300 0.63 4,037 0.26 1,142 0.7 4,485 59 25.9
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Kerr 241,200 0.25 1,939 0.47 2,499 1.2 9,306 n/a n/a
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Iron Cap 361,700 0.44 5,117 0.21 1,674 5.4 62,796 47 37.5
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Total 2,549,300 0.55 45,323 0.21 11,861 3.1 256,333 57 291.4
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Inferred Resources
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Gold Copper Silver Moly
Zone Tonnes Gold (000 of Cu(millions Silver (000 of Moly (millions
(000) (g/t) ounces) (%) of lbs) (g/t) ounces)(ppm) of lbs)
----------------------------------------------------------------------------
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Mitchell 551,000 0.43 7,617 0.14 1,700 3.1 54,917 47 57.1
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Sulphure-
ts 160,500 0.53 2,735 0.16 566 1.1 5,676 34 12.0
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Kerr 91,500 0.23 677 0.30 605 0.7 2,059 n/a n/a
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Iron Cap 297,300 0.36 3,441 0.20 1,310 3.9 37,278 60 39.3
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Total 1,100,300 0.41 14,470 0.17 4,181 2.8 99,930 49 108.4
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Seabridge Gold President and CEO Rudi Fronk noted that the
quality and size of KSM's mineral resources have now increased for
five successive years. "One of our guiding principles is to grow
our gold resources faster than our shares outstanding. Last year`s
drill programs increased measured and indicated gold resources by
6.4 million ounces at KSM and 2.7 million ounces at Courageous Lake
while our shares outstanding only grew by approximately 3.0 million
during the same period."
The new KSM resource model will be incorporated into an updated
Preliminary Feasibility Study (PFS) scheduled for completion in
April 2011. Proven and probable reserves are expected to climb in
the new PFS.
RMI estimated gold and copper grades using inverse distance
weighting methods within geologically constrained gold and copper
grade domains that were constructed for the Mitchell, Sulphurets,
Kerr and Iron Cap zones. 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
and gold equivalent indicator probability models) together with
proximity to drilling data. To facilitate comparisons with previous
resource estimates, recoverable gold equivalent grades were
calculated using the same $650 gold price with a 70% gold recovery
rate and a $2.00 copper price with an 85% copper 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 drill hole database for the KSM project now incorporates 440
diamond core holes totaling approximately 123,625 meters. Over 96%
of the holes at Mitchell were drilled by Seabridge from 2006
through 2010. Approximately 87% of the total Iron Cap meterage was
drilled by Seabridge in 2010. The majority of the Sulphurets assay
data were collected by Seabridge (53%), Placer Dome (23%) and Esso
Minerals Ltd (9%). The remaining 15% of the Sulphurets drilling
data were collected by Falconbridge and two other operators. The
majority of the drilling data for the Kerr zone were collected by
Placer Dome during the early 1990s. RMI has reviewed the quality
assurance/quality control ("QA/QC") protocols and results from
Seabridge's 2006-2010 drilling programs 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 reviewed the Placer Dome QA/QC
data for the Sulphurets and Kerr zones and found the data to be
reliable. No Esso QA/QC data were available for review but RMI
notes that the assay results from those holes compare favoarably
with nearby Seabridge drill holes. Based on QA/QC results and drill
campaign comparisons, it is RMI's opinion that the assay data for
the Kerr and Sulphurets zones are reliable for estimating
resources.
Gold resource estimates included herein were prepared by RMI
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 KSM
resource model will be filed on SEDAR at www.sedar.com.
Exploration activities by Seabridge Gold at the KSM project 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. Rigorous quality control/quality assurance protocols were
employed during the 2010 drilling program including the submission
of blanks and standard reference materials along with duplicate
samples in every batch of assays. Cross-check analyses were
conducted at a second external laboratory on 10% of the samples.
The core 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
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