Continued Drilling Success at Seabridge Gold's
Sulphurets Deposit
Toronto,
Canada - Results
from the first seven core holes drilled this summer at the Sulphurets deposit,
part of Seabridge Gold's 100% owned KSM Project, are likely to expand reserves
and improve overall project economics.
Seabridge President Rudi Fronk commented that the
2011 KSM drill program is off to a good start. "A key objective of this
year's program is to upgrade approximately three million ounces of
higher grade inferred gold resources at the Sulphurets and Kerr deposits to
proven and probable reserves. These resources are currently classified as waste
in the 2011 Preliminary Feasibility Study. The first seven holes drilled
this year at Sulphurets have exceeded expectations with wide intersections
containing gold grades well above the KSM average. This material should
increase reserves and could be exploited in the earlier years of production
which would enhance its economic impact."
Geotechnical drilling is now underway in the Mitchell
deposit to confirm requirements for a cost-effective underground panel caving operation
which is currently under review. Panel caving deeper portions of the Mitchell
deposit could improve production grades and substantially reduce both stripping
ratios and waste rock storage requirements. Additional drilling at Sulphurets
and Kerr will also be completed later this season.
Assay results of the initial seven holes drilled this
year at Sulphurets are as follows:
Descriptions of the initial seven holes drilled
this year at Sulphurets are as follows (see attached map for locations):
S-11-34: Collared in the
southwest area of Sulphurets to fill a data gap in projected shallow
mineralization. After 5 meters of overburden, the hole entered Sulphurets gold
breccia style mineralization of intensely silica and pyrite altered rocks with
disseminated chalcopyrite down to 101.1 meters. From here to the end of the
hole, silica-chlorite-pyrite altered sedimentary and volcanic rocks with minor
intrusions typical of Raewyn copper style mineralization were intersected.
Minor disseminated chalcopyrite occurs as deep as 166.5 meters. This hole is
expected to re-classify waste blocks to reserves in the current pit design and
allow deepening of the southeast side of the pit to capture additional ore
beneath the current pit bottom.
S-11-35: Collared in central
Sulphurets to fill a data gap in projected deep mineralization and re-classify
inferred and unclassified blocks to indicated blocks. The hole was collared
above the Sulphurets Thrust Fault (STF) and entered an intrusive-hydrothermal
breccia zone at the contact of a monzonitic intrusion and andesite host rocks
in the Main Copper zone. The breccia has an alteration mineral assemblage that
includes quartz, chlorite, pyrite, feldspar, magnetite and chalcopyrite. From 4
meters to 153 meters, the hole intersected the longest continuous interval and
highest grade gold and copper mineralization intersected to date in the Main
Copper zone. As a result, considerable low grade ore and waste blocks in the
Main Copper zone will receive higher gold and copper grades in the next
resource model revision. The STF was intersected at 262.1 meters. The
Raewyn Copper zone was cut from 374 to 592 meters and provided the longest and
highest grade interval drilled to date in this zone. Disseminated and
replacement clusters of chalcopyrite are associated with intense potassic
alteration of sedimentary and volcanic rocks. The hole is expected to upgrade
waste and inferred blocks to above average grade reserves, as well as
increasing the grade of current reserve blocks. The increasing intensity of
potassic alteration, higher chalcopyrite to pyrite ratio, and higher gold and
copper grades, all vectoring positively down dip and apparently thickening, are
encouraging indications that stronger
mineralization continues down dip in this area of Sulphurets.
S-11-36: This hole is
located approximately 90 meters southwest of S-11-34 and had the same
objectives. It entered Sulphurets gold zone alteration and mineralization
beneath 9 meters of overburden. At 129 meters, the alteration transitions from
silica-pyrite dominated to Raewyn copper style silica-chlorite-pyrite with more
disseminated chalcopyrite, to a depth of 169 meters. This hole will re-classify
waste blocks to reserves in the current pit model, and allow deepening of the
southeast side of the pit to capture additional ore blocks not in the current
pit design.
S-11-37: Collared
approximately 80 meters northeast of S-11-34 with the same objectives. This
hole intersected intensely silica-pyrite altered rocks of the Sulphurets gold
breccia zone with tourmaline to a depth of 153.8 meters. From here to the end
of the hole at 270 meters, chlorite-pyrite altered sedimentary and volcanic
rocks dominate. Mineralization is mostly confined to above 153.8 meters. From
this area to the northeast, the Raewyn copper zone is increasingly superimposed
by later Sulphurets gold alteration and mineralization. This hole will upgrade
unclassified and inferred mineralized blocks to reserves.
S-11-38: Collared
approximately 100 meters northeast of S-11-37 to complete infilling the data
gap in the shallow projected mineralization from S-11-36 to the southwest side
of the Sulphurets gold breccia zone. From 3.7 meters to a fault at 137.1, this
hole intersected intensely silica-pyrite altered rocks with minor chalcopyrite.
Below the fault, alteration is silica-chlorite-pyrite dominant with
intermittent intervals of disseminated chalcopyrite, diminishing with depth.
Gold grades are in line with what the current model predicts, but blocks
currently classified as waste will be upgraded to reserves. Also, the results
will allow deepening of the southeast wall of the current pit design.
S-11-39: Collared
approximately 160 meters northeast of S-11-35 with similar objectives. This
hole intersected the STF at 265.9 meters and the Raewyn Copper Zone from 361 to
504 meters. Grades are in line to slightly above current model predictions, but
the zone is approximately 30 meters thicker than expected. Some inferred blocks
will be upgraded to reserves and grades enhanced along the southwest pit wall.
S-11-40: Infill hole near
the southwestern-most drilled section on Sulphurets (Canyon Zone). Variably
silica-chlorite-pyrite altered volcanic rocks were cut top to bottom. Weak
chalcopyrite extends to about 260 meters; however the gold to copper ratio in
this area is higher than typical for Sulphurets. Mineralization begins
shallower than predicted and will add reserves in current pit design.
Mineralization is still open to southwest and down dip.
The above reported drill holes were designed to intersect the true width
of the Sulphurets deposit.
The 100% owned KSM project, located near Stewart,
British Columbia, Canada,
is one of the world's largest undeveloped gold/copper projects. Proven and
probable reserves for the KSM project are as follows (see news release dated
May 2, 2011 for details):
National
Instrument 43-101 Disclosure
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. Mr. Threlkeld has reviewed and approved this news release.
An ongoing and rigorous quality control/quality assurance protocol is being
employed during the 2011 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 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 the Environmental Assessment Application; 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.
For further
information please contact:
Rudi P. Fronk,
President and C.E.O.
Tel: (416) 367-9292
Fax: (416) 367-2711
Email: info@seabridgegold.net
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