Seabridge
Gold Drill Results to Upgrade Resources and Increase Reserves at Sulphurets
TORONTO,
CANADA--(Marketwire - Nov. 22, 2011) - Seabridge
Gold Inc. (the "Company") (TSX:SEA)(NYSE Amex:SA)
Results
from the final 14 exploration holes drilled this year at the Sulphurets deposit, part of Seabridge
Gold's 100% owned KSM Project, support an expansion of reserves and improved
overall project economics. Every one of the 34 core holes completed at Sulphurets this year (totaling 11,480 meters) intersected
mineralization above the existing reserve's cut-off grade.
Seabridge President and CEO Rudi Fronk commented that "we are confident that this
year's program has successfully achieved all of our objectives. First, we
believe we have converted significant amounts of in-pit waste to measured and
indicated resources. Second, we have discovered new mineralization beneath the
previous pit limit which will allow us to deepen the proposed pit and define
new resources and reserves. Third, we expect that the overall strip ratio at Sulphurets will decline and economics will improve."
An
updated NI-43-101Mineral Resource Estimate incorporating these drill results is
scheduled for completion in January 2012. This estimate will be included in a
new Preliminary Feasibility Study ("PFS") planned for April 2012
which will include a restatement of reserves at Sulpurets
and the rest of the KSM project.
The
remaining Sulphurets drill results from this year's
reserve definition program are as follows:
Hole
ID
|
|
Total Depth
(meters)
|
|
From
(meters)
|
|
To
(meters)
|
|
Thickness
(meters)
|
|
Gold
(g/T)
|
|
Copper
(%)
|
S-11-53
|
|
263.8
|
|
237.0
|
|
252.3
|
|
15.3
|
|
0.55
|
|
0.26
|
S-11-54
|
|
375.0
|
|
132.0
|
|
171.0
|
|
39.0
|
|
0.82
|
|
0.04
|
185.0
|
|
227.0
|
|
42.0
|
|
0.70
|
|
0.12
|
241.0
|
|
340.0
|
|
99.0
|
|
0.89
|
|
0.16
|
S-11-55
|
|
300.0
|
|
41.0
|
|
62.0
|
|
21.0
|
|
2.49
|
|
0.21
|
279.0
|
|
300.0
|
|
21.0
|
|
0.59
|
|
0.47
|
S-11-56
|
|
150.0
|
|
2.7
|
|
25.0
|
|
22.3
|
|
0.71
|
|
0.32
|
58.0
|
|
98.0
|
|
40.0
|
|
0.68
|
|
0.32
|
112.0
|
|
135.0
|
|
23.0
|
|
0.51
|
|
0.22
|
S-11-57
|
|
402.0
|
|
50.0
|
|
70.4
|
|
20.4
|
|
1.21
|
|
0.02
|
274.0
|
|
294.0
|
|
20.0
|
|
0.59
|
|
0.44
|
371.0
|
|
390.0
|
|
19.0
|
|
0.65
|
|
0.03
|
S-11-58
|
|
210.0
|
|
4.6
|
|
43.0
|
|
38.4
|
|
0.45
|
|
0.26
|
S-11-59
|
|
351.0
|
|
238.0
|
|
253.0
|
|
15.0
|
|
0.76
|
|
0.03
|
281.0
|
|
297.0
|
|
16.0
|
|
0.84
|
|
0.08
|
S-11-60
|
|
441.0
|
|
142.0
|
|
160.0
|
|
18.0
|
|
0.95
|
|
0.04
|
169.5
|
|
275.0
|
|
105.5
|
|
0.87
|
|
0.09
|
288.4
|
|
306.5
|
|
18.1
|
|
0.88
|
|
0.23
|
332.3
|
|
361.6
|
|
29.3
|
|
0.62
|
|
0.09
|
S-11-61
|
|
375.0
|
|
194.0
|
|
210.0
|
|
16.0
|
|
0.90
|
|
0.02
|
225.0
|
|
260.0
|
|
35.0
|
|
1.02
|
|
0.12
|
289.0
|
|
343.3
|
|
54.3
|
|
0.81
|
|
0.11
|
S-11-62
|
|
222.0
|
|
52.0
|
|
68.0
|
|
16.0
|
|
1.33
|
|
0.02
|
90.0
|
|
132.0
|
|
42.0
|
|
1.03
|
|
0.10
|
144.0
|
|
166.0
|
|
22.0
|
|
1.03
|
|
0.05
|
S-11-63
|
|
360.0
|
|
226.0
|
|
243.0
|
|
17.0
|
|
0.70
|
|
0.16
|
250.0
|
|
276.0
|
|
26.0
|
|
0.79
|
|
0.10
|
S-11-64
|
|
270.0
|
|
127.0
|
|
145.0
|
|
18.0
|
|
0.65
|
|
0.08
|
167.0
|
|
185.4
|
|
18.4
|
|
0.57
|
|
0.09
|
201.0
|
|
257.0
|
|
56.0
|
|
0.69
|
|
0.15
|
S-11-65
|
|
270.0
|
|
25.0
|
|
47.0
|
|
22.0
|
|
1.16
|
|
0.06
|
69.0
|
|
85.0
|
|
16.0
|
|
0.58
|
|
0.12
|
131.0
|
|
163.0
|
|
32.0
|
|
0.97
|
|
0.10
|
194.0
|
|
210.0
|
|
16.0
|
|
0.63
|
|
0.15
|
220.0
|
|
246.0
|
|
26.0
|
|
0.51
|
|
0.12
|
S-11-66
|
|
90.0
|
|
Drill hole abandoned at 90.0 meters and re-drilled as
S-11-67
|
S-11-67
|
|
362.0
|
|
111.0
|
|
130.2
|
|
19.2
|
|
0.71
|
|
0.09
|
147.9
|
|
168.0
|
|
20.1
|
|
0.64
|
|
0.42
|
187.0
|
|
211.0
|
|
24.0
|
|
0.86
|
|
0.08
|
218.0
|
|
239.2
|
|
21.2
|
|
0.50
|
|
0.18
|
287.0
|
|
329.0
|
|
42.0
|
|
0.76
|
|
0.33
|
341.0
|
|
357.3
|
|
16.3
|
|
0.80
|
|
0.32
|
The
above reported drill holes were designed to intersect the true width of the Sulphurets deposit.
Descriptions
of the above tabulated holes are as follows (see attached map for locations):
S-11-53: Collared in the east area of the Sulphurets zone, drilled at an azimuth of 145° and
inclined at -60° to fill a data gap within the current pit model and
projected mineralization beneath the pit. The hole passed through the Sulphurets Thrust Fault ("STF") at 48.8 meters.
Between 133.8 and 252.3 meters it intersected the Raewyn
Copper zone, and as expected alteration is mostly silicic and argillic, reflecting cooler or distal conditions and weaker
mineralization (patchy disseminated chalcopyrite). The reported interval is
within a wider lower grade interval from 138 to 252.3 meters that averages 0.39
g/t Au and 0.15% Cu, above the resource model cut off. The mineralized zone is
thicker but lower grade than the current model predicted.
S-11-54: Collared in the west Sulphurets
zone, drilled at an azimuth of 145° and inclined at -65° to test
projected mineralization beneath the current pit model. The mineralized
interval is in chlorite-quartz-pyrite altered andesite tuff and flows.
Generally, fine disseminated chalcopyrite is related to the alteration and
fracture density. This hole will allow deepening of the southeast side of the
pit to capture additional mineralization not in the current model.
S-11-55: Collared in the central Sulphurets
zone, drilled at an azimuth of 325° and inclined at -83° (due to
topographic constraints) to fill a data gap in shallow mineralization and test
projected Raewyn Copper zone mineralization at the
bottom limits of the current pit model. Collared just below the STF, the
interval from 41 to 62 meters is a zone of increased silica-pyrite alteration
with chalcopyrite and higher gold grades than expected. This zone is enveloped
by lower grade mineralization with above the resource cutoff grade. The Raewyn Copper zone was intersected from 279 to 300 meters
and the hole terminated within the zone. The zone was deeper than predicted.
S-11-56: Collared in the east area of Sulphurets, drilled at an azimuth of 145° and inclined
at -60° to fill a data gap in projected shallow mineralization. It entered
the Raewyn Copper zone below 2.7 meters of
overburden, to a depth of 135 meters. As expected, alteration is mostly silicic
and argillic, reflecting cooler or distal conditions
and weaker mineralization (patchy disseminated chalcopyrite). The mineralized
zone is slightly thicker with grades similar to what the current model
predicted.
S-11-57: Collared in the central Sulphurets
zone, drilled at an azimuth of 145° and inclined at -65° to fill a data
gap in projected mineralization up-dip of hole S-08-07.
Collared above the STF that fault zone was intersected at 41.1 meters. Several
intervals of structurally controlled Sulphurets Gold
zone style mineralization (silica-pyrite alteration with minor chalcopyrite)
within a broad interval of quartz-sericite-pyrite
altered volcanic rock was encountered down hole to a fault at 157.4 meters.
Mineralized zones beneath that fault are associated with chloritic
alteration and are thinner than expected. This hole will convert some
unclassified blocks to indicated resources and facilitate deepening of the pit
in this area.
S-11-58: Collared in the east area of Sulphurets, drilled at an azimuth of 145° and inclined
at -71° to fill a data gap in projected shallow mineralization. It entered
the Raewyn Copper zone below 4.4 meters of
overburden, to a depth of 43 meters. Alteration is similar to the zone down dip
in hole S-11-56, which is located approximately 100
meters north. The mineralized zone was thinner than expected, but mineralized
intervals below the Raewyn zone, including 143 to
165.7 meters that averages 0.58 g/t Au and 0.11 % Cu, will add indicated
resources below the current model and facilitate a deeper pit.
S-11-59: Collared at the west end of the Sulphurets zone, drilled at an azimuth of 145° and
inclined at -65° to test the down-dip projection beneath the current pit
model. The hole intersected andesite tuff and flows with alteration
transitioning from silica dominant to propylitic at
depth. The first mineralized interval is centered on a narrow siliceous-pyritic
hydrothermal breccia with a wide silicic and pyrite halo. The second interval
is intense magnetite and pyrite hornfels. Surrounding
rocks are propylitically altered with epidote and carbonate. This assemblage is indicative of
less intense mineralizing conditions and confirms the Sulphurets
zone is thinning along strike to the southwest of this section.
S-11-60: Collared at the west end of the Sulphurets zone, drilled at an azimuth of 144° and
inclined at -70° to test the down-dip projection beneath the current pit
model. Rocks are typical andesite flows and tuff with variable silica-pyrite
alteration overprinting earlier chloritic alteration.
The mineralized intervals have increased alteration intensities associated with
more intense fracturing generally surrounding hydrothermal breccias
and veins with abundant silica, pyrite, minor disseminated chalcopyrite and
traces of galena and sphalerite. The high gold to
copper ratio is typical for the west end of the Sulphurets
zone. This hole will facilitate a deeper pit to capture new indicated
resources.
S-11-61: Collared at the west end of the Sulphurets zone, drilled at an azimuth of 143° and
inclined at -65° to test the down-dip projection beneath the current pit
model. Geology is similar to hole S-11-60 where
mineralized intervals are generally associated with an increase in alteration
intensity and fracturing. This hole will facilitate a deeper pit to capture new
indicated resources.
S-11-62: Collared at the west end of the Sulphurets zone, drilled at an azimuth of 155° and
inclined at -70° to test a data gap within the current pit model. The
geology is similar to hole S-11-60 which is
approximately 100 meters down dip on the same section. Elevated gold is
associated with quartz-sericite-pyrite alteration,
traces of galena, sphalerite and quartz-sulfide veins
that are superimposed on earlier chloritic
alteration. Several sub-millimeter grains of native gold in a quartz vein from
125.56 to 126.06 meters were encountered and returned an assay of 92.1 g/T Au but
the interval is capped at 5 g/t Au in the reported composite. This hole will
convert inferred resources and unclassified material in the area to indicated
resources with higher grades than predicted.
S-11-63: Collared at the west end of the Sulphurets zone, drilled at an azimuth of 145° and
inclined at -65° to test the down-dip projection within and beneath the
current pit model. The geology is similar to adjacent holes S-11-59 and
S-11-61.The mineralized intervals are associated with an increase in alteration
intensity and veining accompanied by minor disseminated chalcopyrite. These
intervals are within a broader continuous zone of weaker mineralization from
145.5 to 342 meters that averages 0.44 g/t Au and 0.11 % Cu. This hole will
convert inferred resources and unclassified material in the area to indicated
resources at predicted grades.
S-11-64: Collared at the west end of the Sulphurets zone, drilled at an azimuth of 145° and
inclined at -70° to test the down-dip projection within and beneath the current
pit model. The geology in this hole is similar to nearby holes S-11-54 and
S-11-62. The mineralized intervals are associated with an increase in
alteration intensity and veining accompanied by minor disseminated
chalcopyrite. A broader interval of continuous though weaker mineralization
from 105 to 268.5 meters that averages 0.53 g/t Au and 0.09 % Cu, surround these better mineralized intersections. This
hole will convert inferred resources and unclassified material in the area to
indicated resources with average to below average grades.
S-11-65: Collared at the west end of the Sulphurets zone, drilled at an azimuth of 145° and
inclined at -65° to test the shallow projection within and beneath the
current pit model. Geology is similar to holes S-11-62 and S-11-63, which are
nearby. The mineralized intervals are associated with an increase in alteration
intensity and veining accompanied by minor disseminated chalcopyrite. The three
lower intervals are within a wider interval of continuous though weaker mineralization
from 107 to 246 meters that averages 0.57 g/t Au and 0.10 % Cu. This hole will
convert inferred resources and unclassified material in the area to indicated
resources with grades as predicted.
S-11-66: Collared at the west end of the Sulphurets zone, drilled at an azimuth of 145° and
inclined at -65° to test down-dip projected mineralization beneath the
current pit model. Nearby holes S-11-62 and S-11-63 show similar geology. The
hole was abandoned at 98 meters in a fault zone oblique to the core axis before
reaching any mineralization. The inclination was steepened to -70° and a
new hole was collared and drilled as S-11-67.
S-11-67: Collared from the same location as S-11-66,
drilled at an azimuth of 145° and inclined at -70°. The fault that terminated
hole S-11-66 was cut from 126.6 to 128.5. This is
interpreted to be one of the several north trending,
steeply west dipping normal faults that cut the Sulphurets
zone however displacement was found to be only be a few meters. Similarly
altered and mineralized andesite is found on both sides of the fault. Other
similar fault zones were encountered at 157.65 and 208.9 meters. The two lower
intervals are within a wider interval of continuous though weaker
mineralization from 275 to 362 meters that averages 0.53 g/t Au and 0.25 % Cu,
well above the resource cut off grade. This hole will
convert inferred resources and unclassified material beneath the current pit
model to indicated resources with average to below average grades.
The
100% owned KSM 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 (http://www.seabridgegold.net/readmore.php?newsid=322)):
|
KSM Proven and
Probable Reserves
|
|
|
|
|
Zone
|
Reserve
Category
|
|
Tonnes
(millions)
|
|
Average Grades
|
|
Contained Metal
|
Gold
(gpt)
|
|
Copper
(%)
|
|
Silver
(gpt)
|
|
Molybdenum
(ppm)
|
|
Gold
(million
ounces)
|
|
Copper
(million
pounds)
|
|
Silver
(million
ounces)
|
|
Moly
(million
pounds)
|
Mitchell
|
Proven
|
|
617.9
|
|
0.64
|
|
0.17
|
|
3.06
|
|
60.2
|
|
12.6
|
|
2,279
|
|
61
|
|
82
|
Probable
|
|
848.6
|
|
0.59
|
|
0.16
|
|
3.02
|
|
61.8
|
|
16.0
|
|
3,040
|
|
82
|
|
116
|
Total
|
|
1,466.5
|
|
0.61
|
|
0.16
|
|
3.04
|
|
61.2
|
|
28.7
|
|
5,320
|
|
143
|
|
198
|
Iron Cap
|
Probable
|
|
334.1
|
|
0.42
|
|
0.20
|
|
5.46
|
|
48.4
|
|
4.5
|
|
1,490
|
|
59
|
|
36
|
Sulphurets
|
Probable
|
|
179.1
|
|
0.62
|
|
0.26
|
|
0.61
|
|
59.8
|
|
3.6
|
|
1,021
|
|
4
|
|
24
|
Kerr
|
Probable
|
|
212.7
|
|
0.25
|
|
0.46
|
|
1.28
|
|
Nil
|
|
1.7
|
|
2,155
|
|
9
|
|
Nil
|
Totals
|
Proven
|
|
617.9
|
|
0.64
|
|
0.17
|
|
3.06
|
|
60.2
|
|
12.6
|
|
2,279
|
|
61
|
|
82
|
Probable
|
|
1,574.5
|
|
0.51
|
|
0.22
|
|
3.03
|
|
50.4
|
|
25.8
|
|
7,706
|
|
153
|
|
175
|
Total
|
|
2,192.4
|
|
0.55
|
|
0.21
|
|
3.04
|
|
53.2
|
|
38.5
|
|
9,985
|
|
214
|
|
257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 the Sulphurets zone or other
zones; (iii) the amount of future production; (iv) further optimization of the
Preliminary Feasibility Study including capacity expansion; (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.
To
view the figure accompanying this press release, please visit the following
link: http://media3.marketwire.com/docs/sbgmap1122.pdf
ON
BEHALF OF THE BOARD
Rudi
Fronk, President &
C.E.O.
.