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Toronto, Canada...An
independent mineral resource model for Seabridge
Gold's Iron Cap Zone at its 100% owned KSM project estimates a new indicated
resource containing 5.1 million ounces of gold and 1.7 billion pounds of
copper immediately adjacent to the Mitchell deposit. The indicated resource
is flanked by a halo of inferred resources containing an additional 3.4
million ounces of gold and 1.3 billion pounds of copper. The Iron Cap
resource estimate was prepared by Resource Modeling Inc. ("RMI") of
Stites, Idaho and will be incorporated into an
updated Preliminary Feasibility Study ("PFS") scheduled for
completion in April 2011. The NI 43-101 compliant global resource estimate is as follows:
A new global resource estimate for the KSM project,
including the Mitchell, Sulphurets and Kerr zones,
will be released shortly.
Seabridge Gold President and CEO Rudi Fronk said
"the Iron Cap resource has exceeded our expectations. Our objective was
to book a five million ounce gold resource in all categories. In fact, we
have achieved more than five million ounces of indicated resources with a
superior copper grade which should help us optimize mine plans to maintain a
favorable copper head grade. We expect that most of the indicated resource
should qualify as reserves in our new PFS and improve the economics for the
KSM project."
RMI estimated gold and copper grades using inverse
distance weighting methods within geologically constrained gold and copper
grade domains that were constructed for the Iron Cap zone. The grade models
were validated visually and by comparisons with nearest neighbor models. The
estimated block grades were classified into indicated and inferred mineral
resource categories based on mineralized continuity that was determined both
visually and statistically (i.e. variogram ranges)
together with the proximity to drill hole data. To facilitate comparisons
with previous resource estimates, recoverable gold equivalent grades were
calculated using the same $650 gold price with a 70% recovery rate and a
$2.00 copper price with an 85% recovery rate. The cutoff grade for resource
tabulation was set at 0.50 grams per tonne (g/t)
gold equivalent, also consistent with the cutoff grade used for previous KSM
resource estimates.
The resource model for Iron Cap incorporates data
from a total of 51 core holes (41 drilled by Seabridge
in 2010 plus 10 holes drilled by previous operators) totaling about 17,700
meters. Grades from the 10 holes drilled by previous operators were compared
with nearby holes drilled by Seabridge. The
grades of the older holes were found to be comparable with the newer holes.
For example, the average gold grade of the old and new holes within 50 meters
of one another was 0.43 and 0.45 g/t, respectively. RMI reviewed the
quality assurance/quality control protocols and results from Seabridge's 2010
drilling program and has deemed that the number and type of gold and copper
standard reference materials (standards, blanks, and duplicates) were
reasonable. Based on the performance of those standard reference materials,
RMI believes that the Seabridge drill samples are reproducible and suitable
for estimating mineral resources. RMI constructed a preliminary block model
in August 2010 using ten historic and eight 2010 Seabridge drill holes that
had been completed as of that date. After the 2010 drilling campaign
was completed, RMI compared the grades from 33Seabridge core holes that were
completed after the preliminary block model had been constructed. This
comparison showed that the newly obtained drill hole
intervals were slightly higher in grade (gold, copper, silver, and molybdenum)
than the estimated preliminary model blocks. The infill drilling
program also validated and expanded the volume of mineralization that was
established by the initial ten drill holes.
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 Iron Cap resource model, plus
updated resource estimates for the Mitchell, Sulphurets and Kerr zones will
be filed on SEDAR at www.sedar.com.
Exploration activities by Seabridge Gold at KSM 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. An ongoing and rigorous
quality control/quality assurance protocol was employed during the 2010
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 were 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 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 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,
2009 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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