2011
Drilling Upgrades and Grows Resources at Seabridge
Gold's KSM Project
Measured
and Indicated Resources Now Total 49.0 Million Ounces of Gold, 12.7 Billion
Pounds of Copper, 261 Million Ounces of Silver and 304
Million Pounds of Molybdenum
TORONTO,
CANADA--(Marketwire - Feb. 8, 2012) - Seabridge
Gold (TSX:SEA)(NYSE Amex:SA) announced today that a
successful 2011 drill campaign at its 100%-owned KSM project has increased
estimated measured and indicated gold resources by 3.7 million ounces and added
another 0.5 million ounces in the inferred category. The updated, independent NI
43-101 compliant resource estimate, prepared by Resource Modeling Inc.
("RMI") of Stites, Idaho, will now be
incorporated into a new Preliminary Feasibility Study ("PFS") on KSM
scheduled for completion in April, 2012.
The
updated resource estimate, effective as of February 6, 2012, is as
follows:
To
view the table titled "KSM Mineral Resources at 0.50 g/t Gold
Equivalent Cutoff-Grade," please visit the following link: http://media3.marketwire.com/docs/SEA0802tables.png.
Seabridge Gold President and CEO
Rudi Fronk noted that the objective of the 2011 KSM
drill program was to upgrade inferred resources contained within the Sulphurets, Kerr and Mitchell open pits defined in the 2011
PFS. "Successfully upgrading 3.7 million ounces of gold resources to
measured and indicated means that proven and probable reserves are likely to
climb from last year's estimate of 38.5 million ounces of gold and 10.0 billion
pounds of copper when the updated PFS is completed this April. We also expect
improved economics from the conversion of in pit inferred resources and
unclassified material to measured and indicated, as these were previously
modeled as waste."
RMI's
updated resource model incorporates 2011 drill results from the Sulphurets, Kerr and Mitchell deposits. Gold and copper
grades were estimated using inverse distance weighting methods within
geologically constrained gold and copper grade domains 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 measured, 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.
"Unlike
other companies that update mineral resource estimates using higher and higher
metal prices, we have elected to consistently report our resources at the metal
prices that were used when resources were first estimated. This practice
enables us to report a true increase in mineral resources based on drilling
results, not higher metal prices. 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 3.7 million ounces at KSM
and 1.2 million ounces at Courageous Lake while our shares outstanding only
grew by approximately 2.4 million during the same period." said Mr. Fronk.
The
drill hole database that was used to estimate mineral resources for the KSM
project now incorporates 508 diamond core holes totaling approximately 144,375
meters. Over 97% of the holes at Mitchell were drilled by Seabridge
from 2006 through 2011. 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 (71%), Placer Dome (15%)
and Falconbridge (5%). The remaining 9% of the Sulphurets
drilling data were collected by Esso Minerals and Newhawk
Gold. The majority of the drilling data for the Kerr zone were collected by
Placer Dome during the early 1990s. Seabridge's 2010
and 2011 Kerr drilling campaigns now total about 17% of the Kerr drill hole data. RMI has reviewed the quality assurance/quality
control ("QA/QC") protocols and results from Seabridge's
2006-2011 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 favorably
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.
National Instrument 43-101 Disclosure
Gold
resource estimates included herein were prepared by Resource Modeling Inc.
under the supervision 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.
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 was employed during the 2011 program
including blank and reference standards in every batch of assays. Cross-check
analyses were conducted at a second external laboratory on 10% of the samples.
Samples were assayed at Eco Tech Laboratory Ltd., Kamloops, B.C. and ALS Chemex, Vancouver, 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 an Environmental Impact
Statement and permit applications; 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, 2010 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.