Seabridge
Gold Options Grassy Mountain Project to Calico Resources
Toronto,
Canada...Seabridge Gold announced today that it has entered into a formal
agreement granting Calico Resources Corp. (Calico) an option to acquire a 100%
interest in the Grassy Mountain Project. To exercise the option, Calico must
issue to Seabridge (i) 2,000,000 of its common shares following TSX Venture
Exchange approval; (ii) 4,000,000 shares at the first anniversary and (iii)
8,000,000 shares when the Project has received the principle mining and
environmental permits necessary for the construction and operation of a mine.
In addition, after the delivery of a NI 43-101 compliant Feasibility Study on
the Project, Calico must either grant Seabridge a 10% Net Profits Interest or
pay Seabridge Cdn$10 million in cash, at the sole election of Seabridge.
Seabridge
President and CEO Rudi Fronk stated that "we are confident that Calico's
management team has the skill set, commitment and knowledge to both grow the
Grassy Mountain resource through exploration and progress the existing resource
to production. We look forward to participating in Calico's future success as a
significant shareholder."
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 the expected gains to be realized should
Calico exercise its option on the anticipated terms, as well as, but 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) completion of a Feasibility Study; (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 Calico's 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.
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