Seabridge Gold

FEATURED PROJECTS:

KSM

The KSM Project is one of the largest undeveloped gold projects in the world measured by reserves. 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 to produce major improvements in the economic and environmental parameters of KSM. From 2013 to 2016, Seabridge 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 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.

Based on these exploration successes, we announced an updated Preliminary Feasibility Study on September 19, 2016 (see news release). This PFS did not include the higher grade Deep Kerr and Iron Cap Lower Zone deposits because their resources are inferred only. These deposits were integrated into a new PEA study of KSM released on October 6, 2016 (see news release). This study confirmed 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.

Exploration this year is expected to generate further gains. In 2016, the last exploration hole drilled (IC-16-62) made two important discoveries at the Iron Cap deposit: the down plunge extension of Iron Cap's higher grade core zone where a 556 meter intercept averaged 0.83g/T Au and 0.24% Cu; and a new distinctly separate mineralized zone near surface which returned a 61 meter interval averaging 1.2 g/T gold and 0.95% copper.

In 2017, we will drill additional holes at Iron Cap designed to (i) fill-in and expand the down dip extension of the core zone found in hole IC-16-62, and (ii) obtain additional pierce points into the exciting new discovery made at the top of IC-16-62 to determine if it could be KSM's fifth major deposit. We expect to add significant new gold and copper resources at grades above our reserves. KSM is already the world's largest undeveloped gold deposit measured by reserves but we believe its full potential is still to be determined.


 

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.

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 that both contains and obscures structurally-controlled epithermal gold and silver systems that evolve from deeper intrusive-related porphyry systems.

During the first half of 2017, considerable historical data was compiled and integrated into the results obtained from Seabridge's 2016 program which included 13 new core drill holes, re-logging of historical drill holes, a full tensor magnetotellurics (MT) survey and a hyperspectral survey. Interpretations of this robust data supported the presence of a large, preserved Jurassic calc-alkalic porphyry system at depth (similar to KSM) with an overlaying epithermal mineral system obscured by extensive leaching of the Quartz Rise lithocap.

Surface mapping identified multiple mineralized structures projecting into the Quartz Rise target area. These structures appear to form a graben which constrains the most intense alteration. Further surface hyperspectral data collection confirmed the chemical expression of higher temperature occurrences associated with this graben feature and co-incident with a promising negative magnetic anomaly. The primary target area hosts a package of clay-and-silica-altered tuffaceous rocks that are intensely leached at surface. Conceptually, the target appears to be a stacked lithocap-hosted precious metals system similar to the El Indio (Chile), Mulatos (Mexico) and Baguio (Philippines) gold deposits.

Two phases of core drill testing are planned for 2017 totaling 8,500 meters to evaluate the potential for high-grade gold concentrations within the untested Quartz Rise lithocap. Commenting on the program, Chairman and CEO Rudi Fronk noted that "we are pursuing a classical model of metal deposition at Iskut which seems to explain the known data. In our view, Iskut hosts district-scale porphyry-style mineral systems similar to our nearby KSM project. These systems account for Iskut's numerous gold and copper mineral occurrences. Our data suggests these systems could be largely intact from top to bottom, unlike KSM. We are concentrating our work on the upper parts of these systems, targeting the high-grade gold potential which historically has been the hallmark of the Iskut district".

In conjunction with its exploration program, Seabridge is also 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 remediation on the property drawing upon the Seabridge environmental team’s experiences at KSM as well as engagement with the Tahltan First Nation and BC regulatory officials.