TORONTO,
CANADA--(Marketwire - June 10, 2009) - Seabridge Gold (TSX:SEA)(NYSE Amex:SA)
announced today that Moose Mountain Technical Services
("MMTS") has completed updated economic pit limits for the
Mitchell, Sulphurets and Kerr zones at its
100% owned KSM project. The 2008 Preliminary Assessment will now be
updated to incorporate the new pit scenarios along with revised capital
and operating cost estimates.
As background, in December 2008 Seabridge
announced the results of a National Instrument 43-101 Preliminary
Assessment (the "2008 PA") which demonstrated the potential
to develop a large tonnage, open pit mining operation at KSM with a
projected operating mine life of approximately 30 years (see news
release dated December 1, 2008). The 2008 PA did not incorporate drill
results from the 2008 KSM drill program. In March 2009, Seabridge announced updated National Instrument
43-101 resource estimates for the KSM project which significantly
increased and upgraded the resource estimates incorporated in the 2008
PA. MMTS relied on these new estimates in the preparation of the
updated open pit scenarios.
In its analysis, MMTS generated two scenarios: (i)
a 30 year mine life consisting of smaller pits for all three zones to
maximize a 5% net present value discounted mining schedule (the
"30 Year" scenario); and (ii) a 48 year mine life based on
larger pits for all three zones to maximize total undiscounted net cash
flow for the project (the "48 Year" scenario). MMTS notes
that both the 30 Year and 48 Year scenarios will follow a similar development
path and that capital payback will occur in the same time frame for
both scenarios. Although the 48 Year scenario provides useful
information, Seabridge will be proceeding, as
originally planned, with the 30 Year scenario in the preparation of a
Preliminary Feasibility Study and its ongoing permitting program.
Comparisons of these new pit scenarios with the 2008 PA are as follows:
---------------------------------------------------------------------------- Mineralized In Situ Grades(i) Material ---------------------------------------------- Pit above cutoff Gold Copper Silver Moly Scenario (000 tonnes)(i) (g/T) (%) (g/T) (%) ---------------------------------------------------------------------------- 2008 PA 1,412,285 0.60 0.225 2.10 0.0040 ---------------------------------------------------------------------------- 30 Year 1,367,702 0.62 0.210 2.20 0.0053 ---------------------------------------------------------------------------- 48 Year 2,062,665 0.59 0.193 2.60 0.0057 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Pit Waste Strip Contained Gold Contained Copper Scenario (000 tonnes) Ratio (million ounces) (million pounds) ---------------------------------------------------------------------------- 2008 PA 2,497,325 1.77 27.2 7,005 ---------------------------------------------------------------------------- 30 Year 2,117,450 1.55 27.1 6,332 ---------------------------------------------------------------------------- 48 Year 5,294,872 2.57 39.0 8,776 ---------------------------------------------------------------------------- (i) Mining loss or dilution not included
Seabridge Gold President and CEO
Rudi Fronk noted that "an updated
Preliminary Assessment now scheduled for completion in July of this
year will provide economic projections for both pit scenarios. Drilling
this year should upgrade all remaining inferred resources in the 30
Year pit - about 281 million tonnes - to the measured and indicated
categories which will allow us to complete a Preliminary Feasibility
Study and book reserves by the end of the first quarter of next
year".
The new economic pit limits prepared by MMTS incorporate updated
processing and G&A cost estimates for the project as well as
updated pit slope angles as supplied by BGC Engineering. In building
the new economic pit limits, MMTS used commodity prices of US$750 per
ounce gold, US$2.00 per pound copper, US$12.50 per ounce silver and
US$12.50 per pound molybdenum. MMTS used the revised metal recoveries
developed in the 2008 PA.
Seabridge notes that the mining scenarios
referred to in this news release currently incorporate inferred mineral
resources which are considered too geologically speculative to be
categorized as mineral reserves. Therefore, Seabridge
advises that there can be no certainty that the estimates contained in
the 2008 PA will be realized. To address this issue, Seabridge is now designing a 2009 KSM drill program
to upgrade inferred resources in the mine plans to the measured and
indicated categories.
Jim Gray of MMTS, a Qualified Person under National Instrument 43-101,
has reviewed this news release.
The 100% owned KSM project, located near Stewart, British Columbia,
Canada,
is one of the world's largest undeveloped gold/copper projects. The
following table summarizes NI 43-101 compliant mineral resources for
all three zones at the KSM project using a 0.50 gram per
tonne (g/t) gold equivalent cut-off grade (see news releases dated
March 11, 2009 and March 25, 2009 for details).
KSM Mineral Resources at 0.50 g/t Gold Equivalent Cutoff-Grade ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Measured Mineral Resources ------------------------------------------------------ ------------------------------------------------------ Zone Tonnes Au Au Ozs Cu Cu Lbs (000) (g/t) (000) (%) (millions) ---------------------------------------------------------------------------- Mitchell 579,300 0.66 12,292 0.18 2,298 ---------------------------------------------------------------------------- Sulphurets No measured resources ---------------------------------------------------------------------------- Kerr No measured resources ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 579,300 0.66 12,292 0.18 2,298 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Indicated Mineral Resources ------------------------------------------------------ ------------------------------------------------------ Zone Tonnes Au Au Ozs Cu Cu Lbs (000) (g/t) (000) (%) (millions) ---------------------------------------------------------------------------- Mitchell 930,600 0.62 18,550 0.18 3,692 ---------------------------------------------------------------------------- Sulphurets 87,300 0.72 2,021 0.27 520 ---------------------------------------------------------------------------- Kerr 225,300 0.23 1,666 0.41 2,036 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 1,243,200 0.56 22,237 0.23 6,248 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Measured plus Indicated Mineral Resources ------------------------------------------------------ ------------------------------------------------------ Zone Tonnes Au Au Ozs Cu Cu Lbs (000) (g/t) (000) (%) (millions) ---------------------------------------------------------------------------- Mitchell 1,509,900 0.64 30,842 0.18 5,990 ---------------------------------------------------------------------------- Sulphurets 87,300 0.72 2,021 0.27 520 ---------------------------------------------------------------------------- Kerr 225,300 0.23 1,666 0.41 2,036 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 1,822,500 0.59 34,529 0.21 8,546 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Inferred Mineral Resources ------------------------------------------------------ ------------------------------------------------------ Zone Tonnes Au Au Ozs Cu Cu Lbs (000) (g/t) (000) (%) (millions) ---------------------------------------------------------------------------- Mitchell 514,900 0.51 8,442 0.14 1,589 Sulphurets 160,900 0.63 3,259 0.17 603 Kerr 69,900 0.18 405 0.39 601 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total 745,700 0.50 12,106 0.17 2,793 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
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 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.
Statements relating to the estimated or expected future production and
operating results and costs and financial condition of Seabridge, planned work at the Corporation's
projects and the expected results of such work are forward-looking
statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements are statements
that are not historical facts and are generally, but not always,
identified by words such as the following: expects, plans, anticipates,
believes, intends, estimates, projects, assumes, potential and similar
expressions. Forward-looking statements also include reference to
events or conditions that will, would, may, could or should occur. Information
concerning exploration results and mineral reserve and resource
estimates may also be deemed to be forward-looking statements, as it
constitutes a prediction of what might be found to be present when and
if a project is actually developed. These forward-looking statements
are necessarily based upon a number of estimates and assumptions that,
while considered reasonable at the time they are made, are inherently
subject to a variety of risks and uncertainties which could cause
actual events or results to differ materially from those reflected in
the forward-looking statements, including, without limitation:
uncertainties related to raising sufficient financing to fund the
planned work in a timely manner and on acceptable terms; changes in
planned work resulting from logistical, technical or other factors; the
possibility that results of work will not fulfill
projections/expectations and realize the perceived potential of the
Corporation's projects; uncertainties involved in the interpretation of
drilling results and other tests and the estimation of gold reserves
and resources; risk of accidents, equipment breakdowns and labour
disputes or other unanticipated difficulties or interruptions; the
possibility of environmental issues at the Corporation's projects; the
possibility of cost overruns or unanticipated expenses in work
programs; the need to obtain permits and comply with environmental laws
and regulations and other government requirements; fluctuations in the
price of gold and other risks and uncertainties, including those
described in the Corporation's Annual Information Form filed with SEDAR
in Canada (available at www.sedar.com) for the year ended December 31, 2008 and in the Corporation's
Annual Report Form 20-F filed with the U.S. Securities and Exchange
Commission on EDGAR (available at www.sec.gov/edgar.shtml).
Forward-looking statements are based on the beliefs, estimates and
opinions of the Corporation's management or its independent
professional consultants on the date the statements are made.
ON BEHALF OF THE BOARD
Rudi Fronk, President & C.E.O.
For Seabridge Gold investor relations needs,
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