Seabridge Gold

FEATURED PROJECTS:

KSM

The KSM Project is one of the largest undeveloped gold projects in the world. An updated Preliminary Feasibility Study (PFS) estimates proven and probable reserves total 38.8 million ounces of gold and 10.2 billion pounds of copper (see table). The KSM Project has completed a joint harmonized environmental assessment review as outlined by the British Columbia Environmental Assessment Act and the Canadian Environmental Assessment Act. In July, 2014 the project received its Environmental Assessment Certificate from the provincial authorities. Final federal approval was received in December, 2014. For more information, see this fact sheet.

Current Programs:

Exploration continues at KSM. Over the past three years, Seabridge has successfully targeted higher grade zones beneath KSM's near surface porphyry deposits, resulting in the discovery of Deep Kerr (2013) and the Iron Cap Lower Zone (2014). These discoveries have led to sizeable resource expansions of higher grade material configured for low cost block cave underground mining. This mining technique substantially reduces the project footprint and waste generation.

Exploration continued in May, 2015, primarily to expand the block cave shapes that would be mined from underground at Deep Kerr. Drilling in 2015 at Deep Kerr brought the total inferred resource for this deposit to more than one billion tonnes containing an estimated 11.3 million ounces of gold and 11.8 billion pounds of copper, an increase of 3.2 million ounces of gold and 2.1 billion pounds of copper over the previous year’s estimate (see March 8, 2016 news release). This year, exploration at KSM Project calls for 10,000 meters of core drilling again designed primarily to expand the block cave shapes that confine the current resource estimate (see the plan map and cross sections). The drilling discovered a new core zone with some of the highest grades yet found at KSM (see news release). Further results will be released later this year.

Results of an updated Preliminary Feasibility Study were announced on September 19, 2016 (see news release). The updated PFS answered a number of important questions about KSM. Projected capital costs fell despite substantial enhancements to meet environmental improvements committed to in the EA process. Gold and copper reserves were up slightly despite lower metal prices. Base Case Life of Mine Cash Operating Costs (net of Cu and Ag credits) were estimated at US$277 per ounce of gold produced. Total Cost (including all capital, operating and closure costs and net of credits) was estimated at US$673 per ounce of gold produced, well below the average for producing mines.

The updated PFS did not include the higher grade Deep Kerr and Iron Cap Lower Zone deposits as their resources are inferred only. These deposits were integrated into a combined new study of KSM released on October 6, 2016 (see news release). This study found significant further gains for KSM including estimated Base Case Life of Mine Operating Costs (net of Cu and Ag credits) of negative US$179 per ounce of gold produced. Total Cost (including all capital, operating and closure costs and net of credits) was estimated at US$358 per ounce of gold produced. The new design also results in a much smaller footprint; 2.4 billion tonnes (or 81%) less waste rock is generated compared to the 2016 PFS.

Seabridge has obtained a License of Occupation for the Mitchell Treaty Tunnels and most of the permits required for their construction. Permits have also been acquired for the construction of an exploration adit into the Deep Kerr deposit (see news release).


 

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 expects to complete 3,000 meters of core drilling in 2016 designed to help determine controls on gold mineralization for several known occurrences including past high grade producers. Results from this year’s drilling will be used to design a much larger program for next year.

This year’s initial drill program is based in part on considerable historical data compiled by previous owners and now being re-interpreted by Seabridge’s exploration team. This information is being augmented by relogging, sampling and assaying old drill core. A new geophysical program has also been initiated, using full tensor magnetotellurics (MT) to provide resistivity images of target areas. These resistivity images will be used to identify altered structures and extensive hydrothermal alteration associated with mineralization.

Seabridge’s exploration team has developed a very positive perception of the potential of the Iskut property. In its view, Iskut hosts extensive district-scale porphyry-style mineral systems. These systems are classically expressed on the property in the form of numerous gold and copper mineral occurrences. Seabridge believes these systems are largely intact from top to bottom, not eroded or faulted away, with characteristic epithermal tops which typically host high grade precious metals above extensive concentrations of gold and copper.

The Iskut system bears a striking resemblance to our nearby KSM project where Seabridge has had remarkable success building one of the world’s largest undeveloped gold-copper reserves. Much of what has been learned at KSM can be applied to Iskut. However, Seabridge believes that the Iskut systems are not as deeply eroded as the ones at KSM. This suggests to us that the very high grade precious metal occurrences typical of these systems can be found near surface at Iskut whereas they were eroded or faulted away at KSM.

In conjunction with its 2016 exploration program, Seabridge is undertaking 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 includes 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.