Drilling Confirms Likely Resource Enhancements at Seabridge
Gold's
Courageous Lake
Toronto, Canada - The second tranche of 2011
infill drill results from Seabridge Gold's 100% owned
Courageous Lake Project are likely to expand the project's multi-million ounce
gold resource, increase the average grade and upgrade inferred resources to higher
categories. Assays from the latest 13 core holes (reported below) continue to
confirm the project's resource model with some intercepts proving to be wider
and better grade than predicted. In August, Seabridge
reported results from the initial 10 core holes from this summer's infill
drilling program which were also highly encouraging.
This year's $16 million program at Courageous Lake,
located in Canada's Northwest Territories, is designed to generate the data
required to complete a Preliminary Feasibility Study (PFS) in the second
quarter of 2012. The drilling component of this program has four main
objectives: (i) to upgrade inferred resources within
the current FAT deposit pit plan by infill drilling, potentially qualifying
them as reserves in the PFS; (ii) to complete geotechnical drilling required
for pit slope and water management planning in the PFS; (iii) to condemn areas
where project facilities will be located; and (iv) to look for new targets
along the 53 kilometers of the Matthew's Lake greenstone belt held by Seabridge.
Assays have now been reported for 23 infill core holes
totaling 7,460 meters drilled. Assays are awaited for another 25 infill holes
totaling a further 6,060 meters drilled. An updated NI 43-101 compliant
resource estimate is expected late this year incorporating the 2011 infill
drilling results. Assays are also awaited for two promising new exploration
targets drilled for the first time.
Seabridge President Rudi Fronk stated that the summer
drill program is now complete and "we are more than satisfied that we have
met our objectives. We are confident that we have upgraded a significant
portion of the inferred resources which lie within the proposed pit and that
these resources will therefore convert to reserves in our planned PFS. In
addition, we are intrigued by the two new targets we drilled south of the FAT deposit.
We own 53 kilometers - nearly the entire length - of a highly prospective
greenstone belt which has gold occurrences all along it. As we move into the
final stages of the FAT deposit PFS, we are beginning to expand our search for
new deposits along the belt. We are excited to get back to exploration in such
a promising geological environment."
Assay results of the second batch of infill holes
drilled this year at Courageous Lake are as follows:
Note: All assays have been capped at
10.1 grams of gold per tonne (g/T) True thicknesses
of the above reported drill hole intercepts are estimated to be approximately
85-90% of the reported interval.
The FAT deposit is in the Slave Province, an extensive
geological terrain in Canada's Northwest Territories. The deposit's name is an
acronym for its dominant rock type, Felsic Ash Tuff.
This gold occurrence, hosted by Archean greenstone
rocks, was formed in a rhyolite/dacite
dome complex that measures about 2km along strike and about 800m of stratigraphic section in width. Although tuffaceous rocks are the most common in the deposit there
are also clear intervals of clastic and chemical
sedimentary rocks and a few late intrusions.
In constructing a geological model for resource
estimation, unique stratigraphic intervals were
defined and labeled as domains 1 through 9 and domain 14. Each domain contains
specific and unique tuff and sedimentary units arranged in particular stratigraphic sequences. The defined geological domains are
relics of the depositional environment in which they were formed. Consequently,
within these domains the style of rock types, hydrothermal alteration, vein
occurrences and sulfide mineralogy are generally consistent across the length and
breadth of each specific domain. Distribution of gold within a domain and the
surrounding rock is treated differently from other domains in resource
modeling. Although ten separate geological domains have been recognized in the
FAT deposit, domains 3, 4 and 5 contain about 90% of the gold in the deposit.
Descriptions of the above reported holes are as
follows:
CL-139: Drilled to the east
in the south-central part of the deposit, this hole was designed to fill an
un-tested portion of zone 5 and upgrade resources in zone 4. A variety of lithologies were encountered in this hole, including felsic ash tuff with varying crystal and lithic fragments and intercalations of thinly laminated
siltstone. Sericite and silicic
alteration were dominant and usually found together. Results from zone 5 were
better than predicted by the model, but consistent with results from holes
earlier this year. Zone 4 mineralization was broader and lower grade than
expected, but should upgrade the class of resources in this area.
CL-140: Collared on the west
side and drilled to the east, the hole was designed to test a gap in zone 5 and
upgrade inferred resources in zone 4. This hole consisted of predominantly lithic felsic tuff with several
narrow intervals of porphyritic tuff. Carbonate
veining is common throughout this drill hole with mineralized intervals
associated to sericite alteration. Mineralization in
zone 5 compared well with holes drilled earlier this year and coupled with them
should create new resources. Zone 4 mineralization was weaker than predicted by
the model but will improve the classification of resources on this section.
CL-141: Drilled to the east
in the north-central portion of the deposit and designed to upgrade inferred
resources in zone 4 between previous drill holes. The hole intercepted felsic ash tuff and lapilli tuff
sections typical of the FAT deposit. Mineralization is associated with strataform quartz veins and sericite
alteration. The interval in zone 4 was higher-grade and slightly broader than
predicted by the model, and will increase the volume of mineralized material in
this area.
CL-142: Collared in the
north-central part of the deposit and drilled to the east, this hole was
designed to upgrade inferred resources in zones 5, 4 and 3. Felsic
tuffs comprise the bulk of lithologies encountered.
Alteration consisted of localized zones of quartz veining, silicic
and sericite alteration. The predicted interval in
zone 5 was not encountered, but the moderate grade and erratic distribution in
zones 4 and 3 are as expected. This hole will push out the indicated resource
limits to the near the edges of the defined deposit.
CL-143: Oriented to the east
and located in the east-central portion of the deposit, this hole was designed
to upgrade resources in zones 3 and 2. The dominant lithology
encountered was felsic tuff with rare intercalations
of siltstone. The top of the hole cut zone 4 and confirms the indicated blocks
that were modeled in that location. The tightly constrained mineralization
encountered in zone 3 is consistent with the model. A fourth unexpected
interval in zone 3 seems to straddle the boundary between zones 3 and 2. The
interval in zone 2 is as expected.
CL-144: Drilled to the east
in the south central area of the deposit, this hole was designed to upgrade a
gap in zone 4. Lithologies encountered alternate
between felsic ash tuff and lithic
tuff. Sericite alteration and quartz veining is most
closely associated with mineralized zones. The mineralization in zone 5 was
narrower than expected but significantly higher grade, while zone 4 was broader
and slightly lower in grade than the model predicted. Overall both intercepts
will upgrade the classification of resources.
CL-145: Located on the far
western margin of the deposit and drilled to the northeast, the hole targeted
inferred resources in zone 8. The top of the hole is characterized by felsic tuffs with intense carbonate alteration. The lower
portion of the hole is dominated by sedimentary rocks. The mineralized section
is stratigraphically above a graphitic unit that is
heavily sheared. The mineralized zone was in line with expectations for width
and location, but at more than twice the grade expected. This hole will upgrade
inferred resources to the indicated category.
CL-146: Targeting zone 8 on
the far west side of the deposit, this hole was designed to upgrade inferred
resources. The top of the hole is in felsic tuff
intensely altered carbonates, while the lower portion of the hole is dominated
by sedimentary units. Dividing the two sections is a graphitic layer that is
intensely sheared. Mineralization was less continuous in this hole than
predicted by the model, but at higher grades. Inferred resources will be
upgraded to the indicated category by this hole.
CL-147: Drilled to the east
from the north-western side of the deposit, this hole was designed to upgrade
inferred blocks in zone 4. A variety of lithologies
were encountered including felsic ash tuff,
intercalations of siltstone and volcaniclastic
conglomerate. Mineralization exhibited a close spatial relationship with quartz
veining and sericite alteration. The top 50 meters of
the hole cut zone 9, with thicker and higher grades than predicted by the
model. Mineralization in zone 4 was narrower and slightly lower grade than
predicted by the model, but will upgrade the classification of inferred
resources on this section.
CL-148: Collared in the
south-central part of the deposit and drilled to the east, the hole was
designed to upgrade inferred blocks in zone 4. The top portion of this hole
begins in clastic sedimentary rocks and grading into felsic ash tuff. Quartz veins are common in conjunction
with sericite alteration. Mineralization in general
was very low-grade, broad and located in the predicted interval. The hole
confirms the continuity of the zone, but does not enhance the grade of the
resources.
CL-149: Drilled to the east
and located in the east central part of the deposit, this hole was designed to
test and upgrade resources in the zones 2 and 1. The lithologies
of hole are predominantly felsic ash tuff, with
infrequent thinly laminated siltstone. Gold mineralization is predominantly
associated with quartz veining. Scattered narrow low-grade intervals in zone 2
were consistent with model predictions. The interval is zone 1 was narrower and
lower grade than expected, but will still upgrade resources.
CL-150: Collared on the east
side of the deposit and drilled to the west, this hole targeted inferred blocks
near the bottom of the proposed pit in zones 3 and 4. The dominant lithology is lithic tuff.
Mineralization is generally associated with moderate to intense sericite alteration and quartz veining. The mineralized
intervals in zone 3 were both wider and higher grade than predicted by the
model, and will upgrade and increase resources on this section. Results in zone
4 were as predicted, and will upgrade inferred resources to higher categories.
CL-151: Drilled to the east
this hole was located on the south east side of the deposit and targeted zones
2 and 1. This hole is composed of felsic ash tuff,
with thin volcaniclastic intercalations.
Mineralization is associated with quartz veins and sericite
alteration. The mineralized intervals in both zone 2 and 1 are slightly
narrower than predicted by the model but at higher grades.
Courageous Lake's current NI 43-101 compliant resource
estimate is as follows:
National Instrument 43-101 Disclosure
Exploration activities by Seabridge
Gold at the Courageous Lake gold project are being 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. Mr. Threlkeld
has reviewed and approved this news release. A rigorous quality control/quality
assurance protocol is being employed during the 2011 Courageous Lake drill
program including blank and certified reference standards inserted by the
Company at a rate of not less than one of each type in every 30 samples.
Repeats and re-splits of the sample rejects are being analyzed at a rate of not
less than one sample in every 25 for each type. Samples are being assayed at
Acme Laboratories, Vancouver, B.C. using fire assay
atomic adsorption methods for gold and total digestion ICP methods for other
elements. Cross-check analyses are being conducted at a second external
laboratory on at least 10% of the samples.
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 resources by project and 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 concerning the expected completion of a
Preliminary Feasibility Study, the preparation of resource and reserve
estimates, other goals or objectives, or the completion of work programs,
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) the amount of future
production over any period; (iii) cumulative pre-tax net cash flow of the
proposed mining operation; (iv) capital costs; (v) operating costs, including
credits from the sale of other metals; (vi) mining rates; (vii) mine life;
(vii) planned expenditures; and (viii) upgrading inferred resources. 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
independent consultants' current beliefs as well as various assumptions made by
them and information available to them on the date the statements are made.
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; (xii) receipt of regulatory
approvals on acceptable terms; and (xiii) 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 cumulative pre-tax net cash flow, which are based on other
forward-looking statements and assumptions. The cost information is also
prepared using earlier 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 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 including those described in
the December 31, 2010 Corporation's Annual Information Form filed with SEDAR in
Canada (available at www.sedar.com) 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.