Resources Continue to Grow at Seabridge Gold's KSM Project
Measured and Indicated Resources Now
Total 45.3 Million Ounces of Gold, 11.9 Billion Pounds of Copper, 256 Million Ounces of Silver and 291 Million Pounds of
Molybdenum
Seabridge Gold announced today that an updated,
independent National Instrument 43-101 mineral resource estimate for its KSM
project has increased measured and indicated gold resources by 16% to 45.3
million ounces. An additional 14.5 million ounces has been classified as
inferred resources. The updated resource estimate was prepared by Resource
Modeling Inc. ("RMI") of Stites, Idaho and
incorporates the new Iron Cap zone (see news release dated February 8, 2011) as well as increases at KSM's three other
deposits.
The following table summarizes the global resource
estimate for KSM:
Seabridge
Gold President and CEO Rudi Fronk noted that the
quality and size of KSM's mineral resources have now increased for five
successive years. "One of our guiding principles is to grow our gold
resources faster than our shares outstanding. Last year's drill programs
increased measured and indicated gold resources by 6.4 million ounces at KSM
and 2.7 million ounces at Courageous Lake while our shares outstanding only
grew by approximately 3.0 million during the same period."
The new KSM resource model will be incorporated into
an updated Preliminary Feasibility Study (PFS) scheduled for completion in
April 2011. Proven and probable reserves are expected to climb in the new PFS.
RMI estimated gold and copper grades using inverse
distance weighting methods within geologically constrained gold and copper
grade domains that were constructed for the Mitchell, Sulphurets,
Kerr and Iron Cap zones. 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 and gold equivalent indicator
probability models) together with proximity to drilling data. To facilitate
comparisons with previous resource estimates, recoverable gold equivalent
grades were calculated using the same $650 gold price with a 70% gold recovery
rate and a $2.00 copper price with an 85% copper 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 drill hole database for the KSM project now
incorporates 440 diamond core holes totaling approximately 123,625 meters. Over
96% of the holes at Mitchell were drilled by Seabridge
from 2006 through 2010. Approximately 87% of the total Iron Cap meterage was drilled by Seabridge
in 2010. The majority of the Sulphurets assay data
were collected by Seabridge (53%), Placer Dome (23%)
and Esso Minerals Ltd (9%). The remaining 15% of the Sulphurets drilling data were collected by Falconbridge and
two other operators. The majority of the drilling data for the Kerr zone were
collected by Placer Dome during the early 1990s. RMI has reviewed the quality
assurance/quality control ("QA/QC") protocols and results from Seabridge's 2006-2010 drilling programs 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 reviewed the Placer Dome QA/QC data for the Sulphurets
and Kerr zones and found the data to be reliable. No Esso
QA/QC data were available for review but RMI notes that the assay results from
those holes compare favoarably with nearby Seabridge drill holes. Based on QA/QC results and drill
campaign comparisons, it is RMI's opinion that the assay data for the Kerr and Sulphurets zones are reliable for estimating resources.
Gold resource estimates included herein were prepared
by RMI 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 KSM resource model will be filed on SEDAR at www.sedar.com.
Exploration activities by Seabridge
Gold at the KSM project 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. Rigorous quality control/quality assurance protocols were employed
during the 2010 drilling program including the submission of blanks and
standard reference materials along with duplicate samples in every batch of
assays. Cross-check analyses were conducted at a second external laboratory on
10% of the samples. The core 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)