Seabridge
Gold Revises KSM Permitting Schedule to Accommodate Improved Design
TORONTO,
CANADA--(Marketwire - Dec. 1, 2011) - Seabridge
Gold (TSX:SEA)(NYSE Amex:SA) reported today
that it intends to file its application for permits on its 100% owned KSM
project in the 3rd quarter of 2012 in order to reflect project
design improvements now nearing completion. The design improvements will be
incorporated into a new Preliminary Feasibility Study ("PFS") which
is scheduled for completion in April, 2012. Located in northwestern British
Columbia, KSM is Canada's largest undeveloped gold project.
The
design improvements are: (i) a combined open pit and
underground panel cave mining scenario for the Mitchell deposit which will
substantially reduce the project's strip ratio and waste rock storage resulting
in less environmental impact; (ii) a potential change in project access routes
to reflect feedback from the Nisga'a Nation and First Nations.
Underground panel caving would reduce the footprint of the proposed mine
resulting in less ground disturbance and overall environmental impact. The
additional capital and operating costs of an underground operation are expected
to be offset by eliminating more than two billion tonnes
of waste rock mining and associated haulage roads and waste rock storage as
well as reducing the height of pit walls.
The
KSM Project is undergoing a joint environmental assessment as mandated by the
Canadian Environmental Assessment Act (CEAA) and the British Columbia
Environmental Assessment Act (BC EAA). For the past three years, the Seabridge permitting team has conducted extensive community
engagement with the Nisga'a Nation, First Nations and public stakeholders
to provide information on the project and obtain feedback. Components of this
program have included site visits to operating and closed mines similar in size
to KSM to highlight proposed project details, site visits to KSM and public
meetings. In addition, Seabridge has hosted frequent
working group sessions with federal and provincial regulators, aboriginal
groups and their technical consultants to review the project in detail as it
has evolved. These programs are continuing under the direction of the Seabridge project office in Smithers,
British Columbia. In general, public feedback on the project has been positive
and input from this consultation process has been used to make design changes.
Seabridge President Rudi Fronk noted that "our aim from the beginning has been
to put forward an Environmental Impact Statement that reflects extensive public
input and coordinated prior review by both provincial and federal regulators.
We think this process has anticipated and removed many of the possible concerns
about KSM before applying for permits. Analysis of development alternatives is
a key component of the Canadian environmental assessment process which we
believe we have satisfied. That's why the PFS scheduled for next April is the
third such study. The result will be a more refined project design that we
believe will stand on its technical merits."
Environmental
studies are being conducted under the leadership of Clem Pelletier,
the CEO of Rescan Environmental Services Ltd. Rescan is an experienced Canadian-based
consulting firm offering a wide range of environmental and engineering services
to clients around the world. Rescan assists industries, institutions and
governments in achieving sound environmental practices for the benefit of
present and future generations. Seabridge and Rescan
will continue to work closely with federal and provincial regulators to advance
KSM through the environmental permitting process and to share information with
the Nisga'a Nation, First Nations and public stakeholder groups.
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 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 an Environmental Impact
Statement and permit applications; 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, 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.