Seabridge Gold

Iskut

The Iskut Project was obtained with the closing of Seabridge’s acquisition of SnipGold Corp. in June, 2016. The property is located in northwestern British Columbia, about 110 km northwest of Stewart, BC and 30 km by air from Seabridge’s KSM Project. The Iskut property consists of a contiguous block of 100 BC Mineral Claims, 2 Mineral Leases and 13 Crown Grants covering 29,436 hectares (294 km2) situated in the Liard Mining Division.

The property includes the former high grade gold Johnny Mountain Mine and the copper-gold Bronson Slope deposit. Seabridge is reviewing past resource estimates for Iskut to determine what can be reported.

Current Programs:

Seabridge’s 2016 multi-pronged exploration program at Iskut achieved its primary objective: to identify a prospective new porphyry copper-gold system with a potentially intact epithermal precious metals zone at its top, for drill testing in 2017.

The untested target, known as Quartz Rise, has all the hallmarks of a porphyry lithocap, a geological feature found at the top of major porphyry systems throughout the world. A lithocap is a clay-silica-rich alteration feature which is a product of hydrothermal fluids escaping at the top of a porphyry mineralizing system. Typically, these features act as a cover obscuring structurally-controlled epithermal gold and silver systems that evolve from intrusive-related porphyry systems.

The Quartz Rise target has the right high temperature crystalline clay-silica alteration and a coincident magnetotelluric anomaly with the appropriate signature. Historical data from magnetic surveys support the lithocap hypothesis and iron mineral ratio analysis used successfully in the industry to identify productive lithocaps is also positive. Finally, and perhaps most importantly, samples of this lithocap at surface contain visible gold. Collectively, these data point to a large and compelling target for the potential discovery of an intermediate-sulfidation epithermal precious metals system overlying porphyry copper-gold mineralization.

Seabridge completed a limited amount of drilling this summer at the old high grade Johnny Mountain gold mine to test detailed ore control concepts on a known deposit while proceeding with the comprehensive program. Drilling confirmed the key structures that control mineralization and the likely elevation where higher grades should be expected. The old mine is found at the bottom of the slope and the high grade gold mineralization does not continue to depth. In our assessment, the Johnny Mountain mine is therefore on the edge of a larger system and lies near the bottom of the productive gold-bearing zone which was largely eroded away by glaciation.

The nearby, higher elevation Quartz Rise resisted glaciation and remains largely intact in part due to its higher silica content. Seabridge’s technical team has therefore concluded that the upper parts of a porphyry system with higher grades of precious minerals may lie intact above the Johnny Mountain mine and under the lithocap on Quartz Rise. (See image). Seabridge expects to drill this target in 2017.

In conjunction with its 2016 exploration program, Seabridge also undertook environmental work to ensure compliance with existing authorizations and to begin the evaluation and development of remediation programs required to mitigate the impacts of historical mining activity. This program included a comprehensive evaluation of best practices for future remediation on the property drawing from the Seabridge environmental team’s experiences at KSM as well as engagement with the Tahltan First Nation and BC regulatory officials.