Drilling Confirms Likely
Resource Enhancements at Seabridge Gold’s Courageous Lake
Monday, 12th September 2011
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.