Drilling to Focus on Expanding Deep Kerr and Discovering
Additional Higher Grade Core Zones
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TORONTO,
June 10, 2014 /PRNewswire/ -
Seabridge Gold reported today that exploration drilling has begun
at its wholly-owned KSM project in Northwestern British Columbia, Canada. The
primary focus of the program is to expand the 515 million tonne
inferred resource averaging 0.53% copper and 0.36 g/T gold found
last year at Deep Kerr and also increase its average grade. The
second objective is to test several more identified and highly
prospective core zone targets which have the potential for large,
high grade deposits similar to Deep Kerr, including the Iron Cap
deposit at depth.
Seabridge Chairman and CEO Rudi Fronk noted that "our understanding of the
KSM system has increased immensely since the discovery of Deep
Kerr, and the more we learn, the more upside we see. We now know a
great deal more about the geophysical and geochemical signatures of
the higher grade core zones we are looking for and we have also
unraveled the major displacements that have occurred along the
district's faults. With these powerful tools at our disposal, we
are confident that we will find more core zones this summer. Both
copper-rich and gold-rich targets are included in the program. We
also expect to make substantial additions to the Deep Kerr
resource."
Additional MT geophysical surveys have recently
been completed by Quantec Geoscience Ltd of Toronto and are now being interpreted. MT
(magnetotelluric), which measures fluctuations in
naturally-occurring electrical and magnetic fields over a broad
range of frequencies, has proven to be an effective tool for
conceptual modelling of deep targets at KSM. MT resistivity
profiles along the plunge projection of the original Kerr deposit
helped to guide the discovery of Deep Kerr. The same method is
being used to identify other potential core zones.
The initial targets in the 2014 program are:
DEEP KERR
Deep Kerr confirmed the existence of higher grade core-zone-style
mineralization at KSM. The Deep Kerr opportunity is enhanced by its
accessibility from the Sulphurets valley floor by way of an
inclined tunnel, raising the potential for a lower cost block
caving option which would also have significant environmental
benefits. The last drill holes completed in 2013 at Deep Kerr,
located on the north end of the deposit, were some of the widest
and richest to date. One of the priority targets for 2014 is to
determine the northern extension of the deposit with step-outs that
could extend the strike of Deep Kerr by several hundred meters.
Deep Kerr demonstrates that the vertical
zonation of a major porphyry system remains intact at KSM. Growing
evidence suggests that the lateral geometry may also have been
preserved at Deep Kerr. The standard model for very large porphyry
mineral systems such as Bingham Canyon in Utah is a symmetrical distribution of metal
around a source intrusion. In this model, the core of the source
intrusion has typically pushed its metal load out to the margins.
On the margins, a systematic zonation of metals is observed
consistent with changing fluid conditions related to changing
pressures and temperatures as the fluids move away from the source
stock. If this model applies to Deep Kerr, it would mean that the
Deep Kerr resource drilled to date may only be the western limb of
the mineral deposition surrounding the host intrusion and that an
eastern counterpart has yet to be found. Such a discovery would be
significant, potentially repeating the known Deep Kerr deposit in
addition to the expected expansion of the west limb to the
north.
Ongoing analysis of the data from the original
Kerr deposit suggests the potential for an eastern limb to Deep
Kerr. Geophysical surveys from 2011 indicated that the eastern part
of the Kerr system contained rocks with physical properties similar
to the Deep Kerr zone. This interpretation also appears to be
supported by the new MT surveys. An eastern extension of Deep Kerr
is therefore a second target for this year's program.
A third target at Deep Kerr is derived from
mineralogical data which points to the potential for greater
concentrations of bornite, a mineral with higher copper content,
below the limits of last year's drilling. This target remains a
priority for testing.
IRON CAP
Drilling below the Iron Cap deposit in 2012 and 2013 attempted to
test the downward plunge of the deposit for higher grade
gold-copper core zone mineralization. Promising results were
obtained in these drill holes, particularly IC-13-49, which
returned 261.4 meters of 0.40% copper and 1.09 g/T gold. Targeting
this zone by drilling down plunge is not optimum; consequently,
holes in the 2014 program have been designed to cut across the
projected core zone at Iron Cap to determine the width and strike
of the zone. Iron Cap is currently designed as an underground block
cave mine, sitting about 1000 to 1200 meters laterally from the
access tunnels designed for the KSM project. Extending this deposit
down plunge into higher grade gold and copper zones would
significantly improve the Iron Cap deposit with little change to
the KSM project design.
"The Seabridge exploration team believes the
2014 program will be our best yet. The excitement level is really
palpable as the drilling begins," Fronk said.
The KSM Project represents a mining district
hosting multiple deposits and containing one of the largest
undeveloped gold and copper reserves in the world. Its composite
intrusive complex hosts four known, large, gold-copper porphyry
deposits which occur within the upper portion of the system and
have demonstrated vertical continuity down to near-magmatic
bornite-bearing core zones and upward through voluminous
mineralized stock works into near surface epithermal vein deposits.
This vertical zonation is typical of many of the world's largest
mining districts. Deep Kerr is the initial confirmation of the
existence of deep core zones beneath the porphyry deposits, which
this model predicts. Core zones are typically formed under higher
temperature and pressure conditions, resulting in a mineralogical
character usually associated with significantly higher metal
content.
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 will be employed during the 2014 program
including blank and reference standards in every batch of assays.
Cross-check analyses will be conducted at a second external
laboratory on 10% of the samples. Samples will be assayed 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 resource 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 2014
program making substantial additions to the Deep Kerr
resource and increasing its average grade, and offering greater
potential to find one or more core zones at Iron Cap and elsewhere;
(ii) the potential for for mining Deep Kerr by the lower cost block
caving option and its accessibility by way of inclined tunnel;
(iii) that the lateral geometry may have been preserved at Deep
Kerr and the potential for an eastern counterpart to the western
limb of Deep Kerr; (iv) the potential for greater concentrations of
bornite below the limits of 2013 drilling at Deep Kerr; (v) that
the Iron Cap deposit may be extended down plunge into higher grade
gold and copper zones which might significantly improve the Iron
Cap deposit with little change to the KSM project design ; (vi) the
estimated amount and grade of mineral reserves and mineral
resources; (vii) estimates of capital costs of constructing mine
facilities and bringing a mine into production, including financing
payback periods; (viii) the amount of future production; and (ix)
estimates of operating costs, net cash flow and economic returns
from an operating mine. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives 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; * metallurgical
performance; (xi) reasonable contingency requirements; (xii)
success in realizing 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 Treaty and 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, 2013 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.
ON BEHALF OF THE BOARD
"Rudi Fronk"
Chairman & CEO
SOURCE Seabridge Gold Inc.