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Toronto, Canada – An updated, independent mineral resource model for
Seabridge Gold's 100% owned Courageous Lake project in Canada's Northwest
Territories has (i) significantly increased the measured and indicated gold
resources (ii) improved the average grade of the resource and (iii) increased
the size of the deposit. The next step is to incorporate the updated resource
model, prepared by Resource Modeling Inc. ("RMI") of Stites, Idaho,
into a new Preliminary Assessment ("PA") scheduled for completion
in April 2011.
The new NI 43-101 compliant resource estimate
prepared by RMI is as follows:
Seabridge Gold President and CEO Rudi Fronk said the
new model "incorporates data from 49 diamond core holes drilled in 2010
totaling about 22,000 meters. The focus of the 2010 drilling program was to
upgrade inferred resources to higher categories. Using the same cut-off grade
as the 2007 resource model, measured and indicated gold resources have
increased by 60% while the average grade of these categories improved by 5%.
Nearly all of that gain came from upgrading previously defined inferred
resources to measured or indicated categories. In addition, the 2010 drilling
found new inferred resources and increased the average grade of the inferred
by 13% from the 2007 estimate. The new resource model and a substantially
higher gold price should significantly enhance project economics in the April
2011 PA. The 2008 PA was based on $690 gold. In the current environment, we
believe that Courageous Lake could be a highly robust gold project."
For a detailed summary of the 2007 resource model
see http://www.seabridgegold.net/NFeb28-07.pdf and for the 2008 PA see http://www.seabridgegold.net/NMar10-08.pdf.
The new resource model constructed for the
Courageous Lake deposit now incorporates data from a total of 560 holes
drilled by Seabridge, Noranda and Placer Dome totaling 150,584 meters. Gold
mineralization within the Courageous Lake deposit is hosted in the upper part
of an assemblage of Archean age felsic pyroclastic rocks, just below a
transition zone to volcanoclastic and sedimentary rocks.
Similar to the 2007 estimate (also completed by
RMI), block model gold grades for this latest Courageous Lake model were
estimated using a multiple pass inverse distance weighting interpolation
procedure. The 2010 drilling program was highly successful with the new drill
hole assay data showing that (i) the 2007 model was a reasonable predictor of
"ore and waste" and that (ii) a back analysis of comparing the 2010
drill hole intersections against the 2007 block model demonstrates a net gain
of contained gold. In addition to using mineral zone wireframes to constrain
the estimate of block grades, a dynamic anisotropic search strategy was used
to select eligible composites. The search ellipse was allowed to dynamically
conform to the hanging and footwall contacts of the key mineral zones,
providing for a more geologically consistent and realistic distribution of in
situ block gold grades. Individual assay grades were capped for each zone
prior to compositing the assay data and interpolating block grades. The
estimated block grades were classified into Measured, Indicated, and Inferred
Mineral Resource categories using distance to drilling data and the number of
drill holes used to estimate the block grades. For the principal mineral
zones (3-5) Measured Resources were defined for blocks estimated by one or
more drill holes within 7.5 meters of the block. For those same principal
mineral zones, Indicated Resources were defined by blocks estimated by two or
more drill holes with at least one sample within 30 meters of the block.
Inferred Mineral Resources were defined by blocks estimated by at least one
drill hole with a maximum allowable assay projection distance of 65 meters.
It is RMI's opinion that the new resource model is globally unbiased and
locally reflects the grade of nearby drill hole composites.
The following table provides global resource
estimates from the new model at various gold cutoff grades:
The cutoff grade for resource tabulation was set at
0.83 grams per tonne, consistent with cut-off grade used for previous
Courageous Lake resource estimates. In all likelihood, the cut-off grade that
will be employed in the 2011 PA will be lower than 0.83 grams per tonne due
to higher gold prices.
Gold resource estimates included herein were
prepared by Resource Modeling Inc. under the direction of Michael Lechner,
who is independent of Seabridge and a Qualified Person as defined by National
Instrument 43-101. Mr. Lechner is a highly regarded expert in his field and
frequently undertakes independent resource estimates for major mining
companies. Mr. Lechner has reviewed and approved this news release. The
independent technical report detailing the new Courageous Lake resource model
will be filed on SEDAR at www.sedar.com.
Exploration activities by Seabridge Gold at the
Courageous Lake gold project have been 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. A rigorous quality control/quality assurance protocol was
employed during the 2010 Courageous Lake drill program including blank and
certified reference standards inserted by the Company in every batch of
assays. Repeats and re-splits of the sample rejects were analyzed at a rate
of not less than one sample in every 25 for each type. Samples were 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 were 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 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 but many of them relate to estimates
and projections prepared in 2007 and 2008. 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) 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, 2009 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.
ON
BEHALF OF THE BOARD
"Rudi Fronk"
President & C.E.O.
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