Seabridge Gold

Courageous Lake: SUMMARY

Property Description

The Courageous Lake project is an advanced gold exploration project located in the Northwest Territories, Canada. Gold was initially discovered in this region in the early 1940's. Intermittent regional geologic mapping studies were carried out by the Geologic Society of Canada during the mid-1940's through 1980.

In 1980, Noranda Exploration began a surface diamond drilling program that resulted in the discovery of the Courageous Lake or FAT deposit. Around 1982, Noranda entered into a joint venture agreement (Tundra Joint Venture) with Getty Canadian Metals Ltd. with Noranda as the operator. In 1987, Total Energold (now Total Resources Canada Limited) purchased Getty Canadian Metals and assumed the Getty interest in the joint venture. In 1988, Noranda sank a 475-meter shaft in order to carry out underground diamond drilling programs to assess the viability of high-grade mineralization that could be exploited by underground mining methods. The results of that program did not meet Noranda's criteria. In 1992 Noranda consolidated its Hemlo Gold unit with Battle Mountain Gold and operated the Tundra Joint Venture as Battle Mountain Gold.

In 1996 Battle Mountain Gold merged with Newmont Gold Corporation and ownership of the Tundra Joint Venture was transferred to Newmont. In 1997, Placer Dome Exploration optioned the property from Newmont with the concept of developing a bulk tonnage open pit deposit. Placer Dome carried out a surface diamond drilling campaign.

In 2002, Seabridge Resources (now Seabridge Gold Inc.) purchased the property from Newmont. Seabridge has carried out a number of drilling campaigns and conducted various metallurgical and mining studies.

Property Location

The Courageous Lake Property is located 240 kilometers northeast of Yellowknife in the Northwest Territories. The center of the currently defined deposit is located at approximately NAD83 UTM coordinates 486,700 East, 7,109,600 North.

Ownership

The property is owned by Seabridge Gold Inc. The property is a collection of Mineral Leases and Mining Claims that trend north-south along the approximately 54 kilometer length of the Courageous Lake Greenstone Belt.

As of March 2011, Seabridge's Courageous Lake property consists of fifty-nine (59) Federal Mining Leases and eleven (11) Federal Mining Claims having a combined area of 81,671.56 acres (33,051.56 hectares). Seventeen (17) of the Mining Leases were acquired by Seabridge through a Purchase and Sale Agreement with Newmont Canada Limited (51%) and Total Resources Canada Limited (49%) dated July 16, 2002. The Mining Leases are encumbered by two Royalty Agreements (G21883 and G21885) and two Debentures (G21884 and G21886) registered in the favor of Newmont Canada and Total Resources, respectively. The Royalty consists of a 2% net smelter royalty (NSR). The property is also subject to a two (2) kilometer Area of Interest from and parallel to all exterior boundaries of the Mining Leases.

Geology

The project is located within the Courageous-MacKay Lake Greenstone Belt (CLGB), which is a steeply east dipping homocline sequence of metavolcanic and metasedimentary rocks of the Yellowknife Supergroup. The CLGB is bounded to the west by a sodic granite pluton referred to as the Courageous Lake Batholith and to the east by conformably overlying turbidite sequences. Dynamothermal regional metamorphism within the CLGB has created mineral assemblages indicative of mid-greenschist facies metamorphic grade. Lower amphibolite facies grade metamorphism has been identified north and south of the CLGB.

The volcanic material within the CLGB represents a tholeiitic to calc-alkaline suite of volcanic rocks common to many Archean greenstone belts. U-Pb and Rb-Sr age determinations give an age of 2.66 Ga (Dillon-Leitch, 1981).

Felsic volcanic rocks and their intrusive equivalents in the CLGB were derived from peraluminous, sub-alkaline magmas of calc-alkaline affinity (Wells, 1998). These felsic volcanic lithologies are the predominant host of the FAT deposit.

Within the felsic volcanic rocks are abundant lense shaped epiclastic intercalations that are thought to be derived from a tuffaceous source. The lithologies are tuffaceous greywacke, thinly laminated siltstone and fine-grained arkosic sandstone.

The mineral domains or zones of the FAT deposit are defined by a discrete suite of hydrothermal alteration assemblages. The lateral continuity and stratigraphic thickness of the hydrothermal system indicates that the FAT deposit was robust in volume and durations. The predominant hydrothermal alteration minerals in the FAT deposit are illite group sheet silicates, referred to as "sericite". Silicic alteration of varying intensity is ubiquitous throughout the defined mineralized zones and is represented by silica flooding of groundmass material in volcanic rock. The most intense zones of silica alteration are not generally indicative of higher gold concentrations. Carbonate alteration is also quite ubiquitous and occurs as calcite, ankerite, and siderite.

Mineralization

Sulfide mineralogy in the FAT deposit is relatively simple and consists of pyrite, pyrrhotite, arsenopyrite, sphalerite and chalcopyrite in decreasing order of abundance. While all of these minerals can be found in the mineralized zones, only arsenopyrite has a consistent correlative relationship to gold concentrations. Arsenopyrite occurs in three distinct habits: acicular disseminated crystals, anhedral disseminated clots, and euhedral crystals in fractures. The acicular variety tends to have the clearest association with higher grade gold mineralization.

Project Status

Approximately 612 holes totaling about 165,584 meters have been drilled from the surface and underground by Noranda, Placer Dome, and Seabridge. Most of this drilling was directed at testing two primary target zones, the Tundra Main or FAT and Carbonate Zones. Based on these data, a number of resource estimates were prepared by various companies and consulting firms.

Resource Modeling Inc. (RMI) has completed five historical estimates of Mineral Resources for the Courageous Lake project. The initial report was prepared in July 2002 (NI-43-101 technical report "Technical Review of the Courageous Lake Property, Northwest Territories, Canada"). The second technical report was prepared in December of 2004 (NI-43-101 technical report "Technical Review of the Courageous Lake Property, Northwest Territories, Canada"). The third technical report was prepared in February 2007 (NI-43-101 technical report "Updated Mineral Resource Estimate, Courageous Lake Project, Northwest Territories, Canada"). In late 2010, RMI constructed a fourth resource model which incorporated new drilling results and an updated geologic interpretation that was completed by RMI. A resource estimate based on this model was released on January 25, 2011. The fifth and most recent mineral resource model for Courageous Lake was released in early 2012 (see news release of January 10, 2012).

In July, 2012, Seabridge released the results of Courageous Lake's first Preliminary Feasibility Study which estimated 6.5 million ounces of proven and probable reserves, average annual production of 385,000 ounces of gold, cash operating costs of $780 per ounce and a mine life of 15 years (see news release of July 24, 2012).

An $8.5 million exploration program in 2012 focused on finding a second deposit along the Greenstone Belt (see news release of March 14, 2012). This program discovered the Walsh Lake deposit (see news release of November 28, 2012). An initial resource for the Walsh Lake deposit was announced in early 2014 totaling 4.62 million tonnes grading 3.24 g/T and containing 482,000 ounces of gold, all inferred (see news release of March 11, 2014).

All disclosure of a scientific or technical nature was prepared by, or under the supervision of, William E. Threlkeld (Licensed Registered Geologist #790 in the State of Washington), a Vice President of Seabridge. Mr. Threlkeld is a "Qualified Person" under National Instrument 43-101.