Seabridge Gold's Sulphurets
Deposit Continues to Grow
TORONTO, CANADA--(Marketwire - Oct. 20,
2011) -
Seabridge Gold Inc. (TSX:SEA)(NYSE Amex:SA) -
Wide
intercepts of excellent gold and copper grades highlight new drill results from
the Sulphurets zone at Seabridge Gold's 100%-owned KSM Project in northwestern
British Columbia, Canada. Results from these 12 core holes are expected to
increase reserves and improve project economics.
During
the 2011 drill season, 34 holes totaling 11,480 meters were completed at
Sulphurets with the aim of upgrading approximately 3 million ounces of inferred
resources to proven and probable reserves. In July, Seabridge reported positive
results from the first seven holes. President Rudi Fronk commented that,
"the next 12 holes once again appear to be converting in-pit material
modeled as waste into measured and indicated resources. The overall effect
should be to increase the size of the Sulphurets deposit while also reducing
its strip ratio. Sulphurets grows larger and more exciting every time we drill
it." Assays from another 15 Sulphurets holes are yet to be released.
The
latest Sulphurets drill results are:
Hole ID
|
Total Depth
(meters)
|
From
(meters)
|
To
(meters)
|
Thickness
(meters)
|
Gold
(g/T)
|
Copper
(%)
|
S-11-41
|
315.0
|
22.0
90.0
296.0
|
78.4
240.0
312.9
|
56.4
150.0
16.9
|
0.69
0.96
1.54
|
0.08
0.10
0.02
|
S-11-42
|
381.0
|
64.0
336.4
|
246.0
381.0
|
182.0
44.6
|
1.03
1.29
|
0.10
0.04
|
S-11-43
|
492.0
|
273.0
426.0
|
416.0
442.0
|
143.0
16.0
|
0.93
0.54
|
0.51
0.20
|
S-11-44
|
150.0
|
140.0
|
150.0
|
10.0
|
0.84
|
0.84
|
S-11-45
|
525.0
|
297.5
|
384.0
|
86.5
|
0.80
|
0.47
|
S-11-46
|
356.7
|
254.0
318.0
|
270.2
327.6
|
16.2
9.6
|
0.59
0.60
|
0.12
0.36
|
S-11-47
|
462.0
|
242.0
283.0
|
257.1
348.0
|
15.1
65.0
|
0.78
0.66
|
0.21
0.31
|
S-11-48
|
339.0
|
2.5
|
108.8
|
105.5
|
0.24
|
0.20
|
S-11-49
|
360.0
|
4.0
|
156.0
|
152.0
|
0.38
|
0.27
|
S-11-50
|
500.1
|
277.0
438.0
|
339.6
498.0
|
62.6
60.0
|
0.55
0.82
|
0.08
0.44
|
S-11-51
|
306.0
|
39.7
171.0
|
69.0
276.0
|
29.3
105.0
|
0.57
0.74
|
0.17
0.30
|
S-11-52
|
290.0
|
6.0
41.0
66.2
238.0
|
23.6
56.2
100.0
274.6
|
17.6
15.2
33.8
36.6
|
0.57
0.67
0.69
1.57
|
0.09
0.03
0.07
0.04
|
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 at http://media3.marketwire.com/docs/sea1020fig1.pdf
for locations):
S-11-41: Collared in the central area of the Sulphurets
zone, drilled at an azimuth of 145° and inclined at -65° to fill a data
gap in projected shallow mineralization. The hole entered Sulphurets Gold
Breccia style mineralization of intensely silica-and-pyrite-altered rocks with
minor disseminated chalcopyrite down to 115.9 meters, beneath 15.2 meters of
overburden. From there to 130.8 meters, silica-chlorite-biotite-pyrite-altered
sedimentary and volcanic rocks typical of Raewyn Copper style mineralization
were intersected. Variably silica-chlorite-pyrite-altered rocks with minor
chalcopyrite were intersected to the end of the hole. The hole indicates a
lower volume of low-grade mineralization and higher volume of well mineralized
Raewyn Copper zone than predicted. It will also re-classify waste blocks to ore
blocks in the current pit model and allow deepening of the southeast side of
the pit to capture additional ore blocks not in the current model.
S-11-42: Collared in the central Sulphurets zone,
drilled at an azimuth of 145° and inclined at -65° to fill a data gap
in projected shallow mineralization. Typical Raewyn Copper style mineralization
was cut from 64 to 91 meters, however the interval is thinner than predicted.
From 91 meters to the end of the hole, strongly silica-pyrite-altered rocks
transitioning to silica-chlorite-pyrite-altered volcanic and sedimentary rocks.
Overall, gold grades are higher and copper grades lower than predicted. This
hole will re-classify waste blocks to ore blocks in the current pit model and
allow deepening of the southeast side of the pit to capture additional ore
blocks not in the current model.
S-11-43: Collared in the central Sulphurets zone,
drilled at an azimuth of 145° and inclined at -72° to fill a data gap
in projected deep mineralization and re-classify inferred blocks to indicated
blocks and unclassified blocks to indicated blocks. The hole was collared above
the Sulphurets Thrust Fault (STF), which was intersected at 225 meters. At
148.9 meters, below barren monzonite, chlorite-altered volcanic rocks of the
Main Copper zone are weakly mineralized to the STF. Below the STF, the Raewyn
Copper zone was intersected from 297 to 427.6 meters in close agreement with
the model. Weaker mineralization continues to a depth of 476 meters. The hole
will have the effect of re-classifying unclassified and inferred blocks to
above average indicated blocks, as well as increasing the grade of current
indicated blocks. Also, these results will likely facilitate deepening of the
north side of the pit to capture additional ore blocks not in the current
model.
S-11-44: Collared in the central Sulphurets zone,
drilled at an azimuth of 145° and inclined at -60° to fill a data gap
in projected shallow mineralization. The hole was collared approximately 90
meters northeast of S-11-42 and having similar objectives. Weakly altered,
mostly barren volcanic rocks or fine grained intrusion occur to 113.7 meters.
Raewyn Copper zone is deeper than expected, and was intersected to the end of
the hole at 150 meters. The hole was terminated as blocks below this depth are
already within the indicated category. The grade and classification model will
not substantially change on this section.
S-11-45: Collared in the central Sulphurets zone,
drilled at an azimuth of 145° and inclined at -80° to fill a data gap
in projected deep mineralization and re-classify inferred blocks to indicated
blocks and unclassified blocks to indicated blocks. The hole was collared above
the Sulphurets Thrust Fault (STF), which was intersected at 180 meters.
Chlorite-altered volcanic rocks of the Main Copper zone are weakly mineralized
to the STF. Below the STF, the Raewyn Copper zone was intersected from 292.6 to
415.8 meters in close agreement with the model. Intermittent weaker mineralization
continues to a depth of 504 meters. The hole will have the effect of
re-classifying unclassified and inferred blocks to above average indicated
blocks and will likely facilitate deepening of the north side of the pit to
capture additional ore blocks not in the current model.
S-11-46: Approximately 150 meters northeast of
S-11-43with similar objectives, drilled at an azimuth of 145° and inclined
at -75°. The hole intersected the low grade Main Copper zone from 200
meters to the STF at 245.5 meters. Low grade mineralization occurs immediately
below the STF to the Raewyn Copper Zone which occurs from about 350 meters to
the end of the hole. The hole was abandoned due to poor ground conditions.
Unclassified and inferred blocks will be upgraded to indicated within the
current pit limits.
S-11-47: Approximately 100 meters south-southwest of
S-11-45 with similar objectives, drilled at an azimuth of 145° and inclined
at -89°. STF intersected from 116.5 to 127.5 meters. From here, mostly
barren rocks were encountered until intersecting the Raewyn Copper zone at
240.5 meters. From 348 meters to the end of the hole, mineralization is weaker
than expected but average grade is still over the resource cut off grade.
Grades within the current pit limit are about as expected and unclassified and
inferred blocks will be converted to indicated on this section.
S-11-48: Approximately 180 meters east of S-11-46 with
similar objectives, drilled vertically. Intersected low grade Main Copper zone
from 2.5 to 108 meters. Below the STF (230.8 meters), only weak mineralization
was intersected. The projection of the Raewyn Copper Zone was not reached as it
lies well below the current pit. Unclassified and inferred blocks above the STF
will be upgraded to indicated within the current pit limits.
S-11-49: Approximately 110 meters east of S-11-48 with
similar objectives, drilled vertically. The hole intersected above average
grade Main Copper zone from 4 to 156 meters. Below the STF (230.8 meters), only
weak mineralization was intersected. The projection of the Raewyn Copper Zone
was not reached as it lies well below the current pit. Unclassified blocks
above the STF will be upgraded to indicated within the current pit limits.
S-11-50: Approximately 140 meters south-southwest of
S-11-47 with similar objectives, drilled at an azimuth of 145° and inclined
at -70°. The STF was intersected from 157.8 to 161.4 meters. The Main
Copper zone above the STF on this section is weakly mineralized and below
resource cutoff grades. Below the STF, low-grade mineralization above the
Raewyn Copper zone starts at 277 meters. The Raewyn zone is thinner and deeper
(from 438 to 498 meters) than east of this section and has likely been down
thrown by one of several steep normal faults sub-parallel to the section
orientation. Grades within the current pit limit are about as expected and
unclassified and inferred blocks will be converted to indicated on this
section. The Raewyn zone was intersected below the current pit limits, but the
up-dip projection will likely facilitate deepening of the southeast wall of the
pit through expansion of the indicated resource.
S-11-51: Approximately 360 meters east of S-11-49 with
similar objectives, drilled at an azimuth of 145° and inclined at -80°
(due to topographic constraints). The hole was collared below the STF. This
drill hole encountered silica-chlorite-pyrite-altered (hornfelsic) volcanic
rocks with intermittent disseminated chalcopyrite from 6.1 to 103.4 meters. The
Raewyn Copper zone was intersected from 171 to 304.65 meters with higher grades
than predicted in the interval from 171 to 276 meters. Results will convert
unclassified blocks to indicated above the Raewyn zone and increase grade in
indicated blocks within the Raewyn zone.
S-11-52: Approximately 110 meters south-southwest of
S-11-41, with similar objectives, drilled at an azimuth of 145° and
inclined at -57°. Collared below the STF, the hole entered strongly
silica-pyrite altered rocks at 3 meters that continued to 28.6 meters, and
again from 45.3 to 56.15 meters. Other rocks are mainly silica-pyrite-chlorite
hornfels fine-grained tuff and sedimentary rocks. Beneath a fault at 66 meters,
higher gold grades are associated with an increase in crackling and
silica-pyrite alteration. These results will convert inferred blocks to
indicated within the current pit.
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 at http://www.seabridgegold.net/readmore.php?newsid=322
dated May 2, 2011 for details):
KSM Proven and Probable Reserves
Zone
|
|
|
Average Grades
|
Contained Metal
|
Reserve
Category
|
Tonnes
(millions)
|
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.