Seabridge Gold Inc.
Seabridge Gold
Drilling Expands Iron Cap: Resource Estimate Expected Shortly
Results Suggest Potential to
Discover Higher Grade Deposit at Depth
Toronto, Canada - 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.
For further information please contact:
Rudi P. Fronk, President and
C.E.O.
Tel:
(416) 367-9292�� ��
Fax: (416) 367-2711
Email:� info@seabridgegold.net