Seabridge Gold Commences 2012 Exploration Program at Courageous Lake
Objective to
Find a Second Major Deposit on 100%-Owned 52 Kilometers of Greenstone Belt
TORONTO,
CANADA--(Marketwire - March 14, 2012) - Seabridge Gold Inc. (TSX:SEA)(NYSE Amex:SA) -
This
year's $8.5 million exploration program at Courageous Lake is focused on
finding a second major gold deposit along Seabridge's 52-kilometer-long
Matthews Lake Greenstone Belt to supplement the existing multi-million ounce
FAT deposit. The program includes: (1) approximately 12,500 meters of core
drilling divided into a winter program now in progress and a summer program
commencing in June; (2) detailed air borne magnetic and electromagnetic
geophysical surveys over the thickest part of the belt and; (3) in-fill
drilling of in-pit, inferred resources at the FAT deposit which could lead to
an increase in reserves. Seabridge is also proceeding with environmental and
engineering programs to advance the project towards permitting and enhance its
design.
Seabridge
President and CEO Rudi Fronk said that "until now, our exploration focus
at Courageous Lake has been to delineate the FAT deposit and define mineral
reserves in the upcoming Preliminary Feasibility Study scheduled for this June.
Our main focus now switches to looking for the next deposit along this
Greenstone Belt which once hosted two high-grade underground gold mines and has
gold occurrences all along its length. We see the potential to find additional
higher-grade deposits along the belt as well as larger, open pit deposits
similar in style to FAT. We are excited about getting back to earlier-stage
exploration and we are confident that using what we have learned about the
geological environment over the last 10 years will lead to new discoveries."
Following
is a summary of the three main components of the 2012 program:
New Target Drilling
Exploration
activities over the past two years have identified three targets that are now
ready for systematic drill testing. The first of these targets is the Plant
Zone, situated approximately 1.5 kilometers south of FAT. The Plant Site
target was identified in 2010 when highly anomalous gold assays were
encountered in soil collected from shallow geotechnical drill holes that were
selected to test conditions for FAT project facilities. The presence of gold in
a structural zone was confirmed in 2011 by drill holes CL-175 (17.9 meters of
2.3 grams per tonne gold and another 1.5 meter interval grading 44 grams per
tonne) and CL-190 (3.0 meters of 1.1 grams per tonne gold and other scattered 1
meter intervals). These holes define a silicic-graphitic shear zone striking
10° and dipping at about 60° to the east, hosted by clastic sedimentary
rocks. A three hole off-set of this shear zone is
planned for 2012.
A
second target is an offset or replica of the FAT deposit named NW FAT.
This potential was recognized in 2011 and followed up by soil geochemical
testing and reconnaissance mapping within the target area. Further evaluation
has identified three possible models that could host gold: (i) a western
off-set of FAT caused by a NE-SW striking fault that could have shifted the
northern extent of the main FAT deposit to the west in an area which has not
been drill tested; (ii) high-grade FAT feeders located in the basement rocks to
the deposit; and (iii) an earlier FAT style deposit situated in an extensive
package of older felsic tuff similar to the host rock of the FAT deposit. An
aggressive drill testing program is planned for the NW FAT target area because
its proximity to the existing deposit could make it highly accretive
economically. The plan is designed to test all three potential target styles at
NW FAT in a preliminary manner. A total of 14 drill holes are planned for this
summer (about 4,200 meters) covering over one kilometer of stratigraphy.
The
third target, Walsh Lake, is an historical prospect that saw drill
campaigns in 1987 and 1988 by previous operators. The target is a 10 to 30
meter thick structure that extends from the surface to at least 250 meters
deep, dipping to the east at about 70° and possibly containing multiple
zones. Gold is concentrated at and around a stratigraphic contact at the base
of a rhyolite tuff overlaying andesite. Previous drilling within the Walsh Lake
target area covered about 300 meters of strike. This zone is thought to extend
another 700 meters to the north into the south end of the Tundra Mine where
this stratigraphic contact was exploited underground. Historical assay
intervals include intercepts of 10 to 40 meters in thickness averaging 1 to 2
grams of gold per tonne, along with significantly higher-grade, narrower
intercepts of 15 to 60 grams of gold per tonne. The plan for the Walsh Lake
Target is to complete 2 to 3 holes per section along 1 kilometer of strike
length for a total of 4,000 meters in 15 holes to be drilled this summer.
Regional Exploration
A
detailed air borne magnetic and electromagnetic survey totaling 2,800 line
kilometers has been contracted for the central and thickest part of the Mathews
Lake Greenstone Belt. Historic work carried out by previous operators
identified several possible geophysical signatures for the FAT deposit. The
exploration model for the FAT deposit argues for multiple repetitions of the
deposit in the greenstone belt and this survey is the first attempt to test
that assertion. Air borne geophysical surveying will be completed in early
April and ground follow-up sampling will begin in May. The intent is to advance
at least one target to drill testing in 2012.
FAT In-Fill Drilling
Delineation
drilling at the FAT deposit over the past 2 years has increased the total
resource to 8.0 million ounces of measured and indicated gold, plus 3.4 million
ounces in the inferred category. Our most recent resource estimate identified
about 12% of this inferred resource within the 2011 pit limits that was not
tested by previous programs. During 2012 we intend to upgrade most of the
remaining in-pit inferred resources so they can be included as potential
reserves in future feasibility studies. This portion of the 2012 program will
consist of up to six drill holes totaling about 3,400 meters. The bulk of this
work will be completed in the winter program now underway.
Mineral
resources at the FAT deposit, as of January 9, 2012, are as follows:
Courageous Lake Gold Resources at 0.83 gram
per tonne cutoff
Measured
|
|
Indicated
|
Tonnes
(000's)
|
Grade
(g/T)
|
Ounces
(000's)
|
|
Tonnes
(000's)
|
Grade
(g/T)
|
Ounces
(000's)
|
13,401
|
2.53
|
1,090
|
|
93,914
|
2.28
|
6,884
|
|
|
|
|
|
|
|
Measured plus Indicated
|
|
Inferred
|
Tonnes
(000's)
|
Grade
(g/T)
|
Ounces
(000's)
|
|
Tonnes
(000's)
|
Grade
(g/T)
|
Ounces
(000's)
|
107,315
|
2.31
|
7,974
|
|
48,963
|
2.18
|
3,432
|
For
a detailed summary of the FAT resource model see http://seabridgegold.net/news.php.
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.
Exploration
activities by Seabridge Gold at the Courageous Lake gold project will be
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 will be employed during the 2012 Courageous
Lake drill program including blank and certified reference standards inserted
by the Company at a rate of not less than one of each type in every 30 samples.
Repeats and re-splits of the sample rejects will be analyzed at a rate of not
less than one sample in every 25 for each type. Samples will be 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 will be conducted at a second external laboratory on at
least 10% of the samples.
Mr.
Lechner and Mr. Threlkeld have reviewed and approved this news release.
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 concerning the expected completion of a
Preliminary Feasibility Study, the preparation of resource and reserve
estimates, other goals or objectives, or the completion of work programs,
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, 2010 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.