| October 23, 2008 |
| Seabridge Gold's KSM Project Continues to Expand
New Drill Results Exceed Program Objectives |
TORONTO, CANADA--(Marketwire - Oct. 23, 2008) - Seabridge Gold Inc. (TSX:SEA)(AMEX:SA)
Results from another nine holes drilled this summer at the Kerr-Sulphurets-Mitchell ("KSM") project continue to confirm the geological model and extend the resource area to the north and at depth. Five of these were successful infill drill holes which are expected to upgrade a significant portion of the project's inferred resources to the indicated category. Hole M-08-73, a deep drill test following the northwest plunge of the Mitchell zone, confirms the continuity of this zone beyond the current model. Three geotechnical holes drilled to test the proposed north and south pit walls identified several zones of mineralization within the conceptual pit which had been classified in the geological model as waste. To view the drill plan map, please visit the following link: http://media3.marketwire.com/docs/seamap123.pdf
To date, Seabridge has reported on 19 holes drilled this summer at KSM of which five are exploratory, 11 are infill and three are geotechnical (intended to evaluate slope stability for mining operations). Results from another 11 holes are awaited. A total of 17,000 meters were drilled in the now completed program.
Seabridge Gold President and CEO Rudi Fronk said the new results have "exceeded our expectations. We will now need to expand our geological model to incorporate extensions of the high grade plunge of the Mitchell zone and to redefine material in the pit slopes that is currently classified as waste. In addition, the success of our infill program should mean a significant conversion of inferred resources into the measured and indicated category."
Results from the most recent exploration and infill drill holes are
tabulated below:
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Drill Target Depth From To Length Gold Copper
Hole (m) (m) (m) (m) (gpt) (%)
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M-08-70 Infill 381.0 8.70 204.0 195.3 0.65 0.22
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M-08-71 Infill 333.0 13.2 154.0 140.8 0.67 0.15
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M-08-72 Infill 327.0 11.2 139.0 127.8 0.61 0.10
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M-08-73 Deep North 617.8 33.0 617.8 584.8 0.62 0.17
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Incl. 93.0 469.0 376.8 0.72 0.19
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M-08-76 Infill 470.0 9.6 470.0 460.4 0.74 0.20
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Incl. 9.6 349.0 339.4 0.85 0.22
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M-08-77 Infill 390.0 26.8 267.0 240.2 0.79 0.22
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Results from the geotechnical drill holes are as follows:
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Drill Target Depth From To Length Gold Copper
Hole (m) (m) (m) (m) (gpt) (%)
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M-08-74 Drill hole abandoned, re-drilled as M-08-75
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M-08-75 North Pit Geotech 813.00 130.0 228.0 98.0 0.05 0.18
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250.6 291.0 40.4 0.08 0.19
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635.0 748.0 113.0 0.07 0.18
-----------------------------------------------
774.0 804.0 30.0 0.74 0.01
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M-08-78 Drill hole abandoned, re-drilled as M-08-80
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M-08-79 North Pit Geotech 399.00 187.0 243.0 56.0 0.07 0.11
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256.0 399.0 143.0 0.16 0.36
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M-08-80 South Pit Geotech 487.70 111.0 173.0 62.0 0.26 0.20
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The relationship of these new drill holes to the existing 3D model is available as a link on the Seabridge Gold website (www.seabridgegold.net).
The Mitchell zone is now defined vertically as a continuously mineralized body between 300 and 800 meters thick. The minimum dimensions of the Mitchell zone have been established to be 1000 meters in a northeast-southwest direction and 1600 meters in a northwest-southeast direction. Mitchell remains open to the northwest along the recently confirmed plunge of the higher grade core zone. All exploration and infill holes were drilled to intersect the Mitchell zone perpendicular to strike and are therefore believed to be true widths. True widths for the intersections reported in the geotechnical holes are not known at this time.
Descriptions of the nine new holes are as follows:
M-08-70: Infill drill hole in the central part of Mitchell at azimuth 190 degrees and inclination of -75 degrees. The hole intersected typical Mitchell grades as predicted, but over a wider interval than expected. Molybdenite abundance increases downhole,
M-08-71: Infill drill hole collared at 190 degrees with an inclination of -55 degrees. This hole is on the eastern margin of the Mitchell zone and contains Mitchell-style alteration and grades in the upper part of the drill hole. Below 150 meters the drill hole passes into marginal alteration styles and intensity marking the eastern margin of the Mitchell zone.
M-08-72: Infill hole on the eastern margin of the deposit drilled at azimuth 190 degrees and inclination of -55 degrees. The drill hole encountered the predicted grade and alteration style from the geological model in the upper 140 meters. The lower half of the drill hole encountered less intense Mitchell-style alteration, further establishing the eastern limit of the zone.
M-08-73: Deep north test in the western part of the zone, drilled at azimuth 010 degrees and inclination of -85 degrees. Copper grades and alteration are similar to those predicted in the geological model up plunge from the pierce point of this hole. Slightly higher gold than expected is observed in the middle of the intersection from about 100 to 450 meters. The drill hole confirms the continuity at depth beyond the existing model and verifies the northwest plunge on the Mitchell zone.
M-08-75: Geotechnical drill hole on the north wall of the conceptual pit design, drilled at azimuth 180 degrees and inclination -55 degrees. The objective of this drill hole was to provide a vertical profile along the north pit wall above the main Mitchell zone. Slope stability measurements were collected from the drill hole as well as geochemical samples for previously unrecognized mineral zones in the stripping profile of the conceptual pit wall and above the upper limit of the Mitchell zone. Multiple intervals of copper dominated mineral zones were encountered. These zones are associated with the margins of intrusions and hosted in sedimentary rocks or intrusive rocks. Styles of alteration and mineralization are characteristic of occurrences above the Mitchell Thrust Fault and can be best described as deep porphyry-style or skarn-style targets. While these types of targets will likely not change the exploration and development plans for the Mitchell zone, they may convert waste material to ore in the north pit wall, potentially lowering strip ratios and improving project economics.
M-08-76: Infill drill hole near the center of the Mitchell zone, collared at azimuth 190 degrees inclination of -60 degrees. The drill hole encountered the geology and alteration predicted by the geological model but grades were slightly higher than the statistical model predicted. Results from this hole are expected to upgrade inferred resources.
M-08-77: Infill drill hole at azimuth 190 degrees and -65 degrees inclination in the south-central part of the Mitchell zone. A short interval was drilled above the Mitchell Thrust Fault in moderately mineralized rock. Well-veined and altered Mitchell zone rocks were intersected immediately below the fault to the end of the hole, with vein density and mineralization gradually diminishing with depth. Results were similar to the model with slightly higher copper grades.
M-08-79: A north wall geotechnical hole drilled vertically in the upper part of the conceptual north pit wall. The drill hole encountered thermally metamorphosed andesite and intrusive rock. Mineral zones in this part of the system are copper dominated skarn-style occurrences associated with abundant magnetite. The drill hole was extended well beyond its intended target to follow the magnetite skarn occurrence and was terminated in the mineral zone.
M-08-80: Geotechnical drill test on the south conceptual pit wall collared at 010 degrees azimuth and inclination of -67 degrees. The objective of this drill hole was to provide a vertical profile along the south pit wall above the main Mitchell zone. Slope stability measurements were collected from the drill hole as well as geochemical samples for previously unrecognized mineral zones in the stripping profile of the conceptual pit wall and above the upper limit of the Mitchell zone. Several narrow (less than 6 meters) gold-rich intervals were encountered in the drill hole. The upper part of the hole contains a continuous intersection of copper dominated mineralization that corresponds with and overlaps a contact zone between intrusive and volcanic rocks.
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 January 10, 2008 and February 20, 2008 for details).
KSM Mineral Resource Estimates at 0.50 g/t Equivalent Gold Cut-off Grade
--------------------------------------------------------------
--------------------------------------------------------------
Indicated Mineral Resources
-------------------------------------------------
Gold Copper
Zone Tonnes Gold Copper Ounces Pounds
(000) (g/t) (%) (000) (millions)
--------------------------------------------------------------
--------------------------------------------------------------
Mitchell 734,163 0.69 0.18 16,287 2,913
--------------------------------------------------------------
Kerr 206,272 0.25 0.45 1,651 2,037
--------------------------------------------------------------
Sulphurets 74,655 0.75 0.24 1,798 388
--------------------------------------------------------------
--------------------------------------------------------------
Total 1,015,090 0.61 0.24 19,736 5,338
--------------------------------------------------------------
--------------------------------------------------------------
Inferred Mineral Resources
-------------------------------------------------
Gold Copper
Zone Tonnes Gold Copper Ounces Pounds
(000) (g/t) (%) (000) (millions)
--------------------------------------------------------------
--------------------------------------------------------------
Mitchell 667,421 0.62 0.15 13,304 2,206
--------------------------------------------------------------
Kerr 51,387 0.21 0.45 352 506
--------------------------------------------------------------
Sulphurets 33,636 0.62 0.20 675 147
--------------------------------------------------------------
--------------------------------------------------------------
Total 752,444 0.59 0.18 14,331 2,859
--------------------------------------------------------------
Exploration activities at KSM are being conducted by Seabridge personnel under the supervision of William E. Threlkeld, Senior Vice President of Seabridge and a Qualified Person as defined by National Instrument 43-101. An ongoing and rigorous quality control/quality assurance protocol is being employed during the 2008 program including blank and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10% of the samples. Samples are being assayed at Eco Tech Laboratory Ltd., Kamloops, B.C., using fire assay atomic adsorption methods for gold and total digestion ICP methods for other elements.
Seabridge holds a 100% interest in several North American gold resource projects. The Corporation's principal assets are the KSM property in British Columbia, one of the world's largest undeveloped gold/copper projects, and the Courageous Lake gold project located in Canada's Northwest Territories. For a breakdown of the Corporation's mineral resources by project and resource category please visit the Corporation's website at http://www.seabridgegold.net/Resource.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, 2007 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, investors can visit the Seabridge Gold IR Hub at http://www.agoracom.com/ir/seabridge where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to sea@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.
.
The Mitchell zone is now defined vertically as a continuously mineralized body between 300 and 800 meters thick. The minimum dimensions of the Mitchell zone have been established to be 1000 meters in a northeast-southwest direction and 1600 meters in a northwest-southeast direction. Mitchell remains open to the northwest along the recently confirmed plunge of the higher grade core zone. All exploration and infill holes were drilled to intersect the Mitchell zone perpendicular to strike and are therefore believed to be true widths. True widths for the intersections reported in the geotechnical holes are not known at this time.
Descriptions of the nine new holes are as follows:
M-08-70: Infill drill hole in the central part of Mitchell at azimuth 190 degrees and inclination of -75 degrees. The hole intersected typical Mitchell grades as predicted, but over a wider interval than expected. Molybdenite abundance increases downhole,
M-08-71: Infill drill hole collared at 190 degrees with an inclination of -55 degrees. This hole is on the eastern margin of the Mitchell zone and contains Mitchell-style alteration and grades in the upper part of the drill hole. Below 150 meters the drill hole passes into marginal alteration styles and intensity marking the eastern margin of the Mitchell zone.
M-08-72: Infill hole on the eastern margin of the deposit drilled at azimuth 190 degrees and inclination of -55 degrees. The drill hole encountered the predicted grade and alteration style from the geological model in the upper 140 meters. The lower half of the drill hole encountered less intense Mitchell-style alteration, further establishing the eastern limit of the zone.
M-08-73: Deep north test in the western part of the zone, drilled at azimuth 010 degrees and inclination of -85 degrees. Copper grades and alteration are similar to those predicted in the geological model up plunge from the pierce point of this hole. Slightly higher gold than expected is observed in the middle of the intersection from about 100 to 450 meters. The drill hole confirms the continuity at depth beyond the existing model and verifies the northwest plunge on the Mitchell zone.
M-08-75: Geotechnical drill hole on the north wall of the conceptual pit design, drilled at azimuth 180 degrees and inclination -55 degrees. The objective of this drill hole was to provide a vertical profile along the north pit wall above the main Mitchell zone. Slope stability measurements were collected from the drill hole as well as geochemical samples for previously unrecognized mineral zones in the stripping profile of the conceptual pit wall and above the upper limit of the Mitchell zone. Multiple intervals of copper dominated mineral zones were encountered. These zones are associated with the margins of intrusions and hosted in sedimentary rocks or intrusive rocks. Styles of alteration and mineralization are characteristic of occurrences above the Mitchell Thrust Fault and can be best described as deep porphyry-style or skarn-style targets. While these types of targets will likely not change the exploration and development plans for the Mitchell zone, they may convert waste material to ore in the north pit wall, potentially lowering strip ratios and improving project economics.
M-08-76: Infill drill hole near the center of the Mitchell zone, collared at azimuth 190 degrees inclination of -60 degrees. The drill hole encountered the geology and alteration predicted by the geological model but grades were slightly higher than the statistical model predicted. Results from this hole are expected to upgrade inferred resources.
M-08-77: Infill drill hole at azimuth 190 degrees and -65 degrees inclination in the south-central part of the Mitchell zone. A short interval was drilled above the Mitchell Thrust Fault in moderately mineralized rock. Well-veined and altered Mitchell zone rocks were intersected immediately below the fault to the end of the hole, with vein density and mineralization gradually diminishing with depth. Results were similar to the model with slightly higher copper grades.
M-08-79: A north wall geotechnical hole drilled vertically in the upper part of the conceptual north pit wall. The drill hole encountered thermally metamorphosed andesite and intrusive rock. Mineral zones in this part of the system are copper dominated skarn-style occurrences associated with abundant magnetite. The drill hole was extended well beyond its intended target to follow the magnetite skarn occurrence and was terminated in the mineral zone.
M-08-80: Geotechnical drill test on the south conceptual pit wall collared at 010 degrees azimuth and inclination of -67 degrees. The objective of this drill hole was to provide a vertical profile along the south pit wall above the main Mitchell zone. Slope stability measurements were collected from the drill hole as well as geochemical samples for previously unrecognized mineral zones in the stripping profile of the conceptual pit wall and above the upper limit of the Mitchell zone. Several narrow (less than 6 meters) gold-rich intervals were encountered in the drill hole. The upper part of the hole contains a continuous intersection of copper dominated mineralization that corresponds with and overlaps a contact zone between intrusive and volcanic rocks.
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 January 10, 2008 and February 20, 2008 for details).
KSM Mineral Resource Estimates at 0.50 g/t Equivalent Gold Cut-off Grade
--------------------------------------------------------------
--------------------------------------------------------------
Indicated Mineral Resources
-------------------------------------------------
Gold Copper
Zone Tonnes Gold Copper Ounces Pounds
(000) (g/t) (%) (000) (millions)
--------------------------------------------------------------
--------------------------------------------------------------
Mitchell 734,163 0.69 0.18 16,287 2,913
--------------------------------------------------------------
Kerr 206,272 0.25 0.45 1,651 2,037
--------------------------------------------------------------
Sulphurets 74,655 0.75 0.24 1,798 388
--------------------------------------------------------------
--------------------------------------------------------------
Total 1,015,090 0.61 0.24 19,736 5,338
--------------------------------------------------------------
--------------------------------------------------------------
Inferred Mineral Resources
-------------------------------------------------
Gold Copper
Zone Tonnes Gold Copper Ounces Pounds
(000) (g/t) (%) (000) (millions)
--------------------------------------------------------------
--------------------------------------------------------------
Mitchell 667,421 0.62 0.15 13,304 2,206
--------------------------------------------------------------
Kerr 51,387 0.21 0.45 352 506
--------------------------------------------------------------
Sulphurets 33,636 0.62 0.20 675 147
--------------------------------------------------------------
--------------------------------------------------------------
Total 752,444 0.59 0.18 14,331 2,859
--------------------------------------------------------------
Exploration activities at KSM are being conducted by Seabridge personnel under the supervision of William E. Threlkeld, Senior Vice President of Seabridge and a Qualified Person as defined by National Instrument 43-101. An ongoing and rigorous quality control/quality assurance protocol is being employed during the 2008 program including blank and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10% of the samples. Samples are being assayed at Eco Tech Laboratory Ltd., Kamloops, B.C., using fire assay atomic adsorption methods for gold and total digestion ICP methods for other elements.
Seabridge holds a 100% interest in several North American gold resource projects. The Corporation's principal assets are the KSM property in British Columbia, one of the world's largest undeveloped gold/copper projects, and the Courageous Lake gold project located in Canada's Northwest Territories. For a breakdown of the Corporation's mineral resources by project and resource category please visit the Corporation's website at http://www.seabridgegold.net/Resource.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, 2007 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, investors can visit the Seabridge Gold IR Hub at http://www.agoracom.com/ir/seabridge where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to sea@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.
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