Hole 39 steps out 140m north cutting 252m
of 0.69% Cu and 0.55 g/T Au
Hole 40 retests
assumed southern limit, predicts a southern extension of
deposit
Trading Symbols:
TSX:
SEA
NYSE:
SA
TORONTO, Sept. 16, 2014 /CNW/ - Seabridge Gold today
announced initial results from its 2014 drill program on the Deep
Kerr copper-gold deposit at its 100%-owned KSM project in
northwestern British Columbia,
Canada. The 2013 Deep Kerr discovery reported an inferred
resource of 515MT grading 0.53%
copper and 0.36 g/T gold which is open on strike and at depth (see
release of February 18, 2014).
Drilling this season at Deep Kerr was designed to confirm the
resource model and test for the limits of the deposit along strike.
Results from the first three holes at Deep Kerr have successfully
addressed these objectives; a step-out hole to the north has
confirmed the north strike extension and deeper drilling on the
south indicates potential strike extension in that direction while
a third infill hole has returned results validating the resource
block model.
Hole K-14-39, located 140 meters north of 2013 drilling,
contained broad zones of copper and gold mineralization including a
discrete higher grade interval. Hole K-14-40 was drilled on
the south end of the deposit within the limits of the 2013 model
but deeper than previous intersections. This hole encountered
mineralization in a pattern identical to the balance of the
deposit, leading to the conclusion that 2013 drilling in this
direction was too shallow and therefore did not establish the
southern limit of the deposit as previously reported. Hole
K-14-28C, a "daughter" hole wedged off a hole completed in 2013,
was drilled to confirm the modeled grade distribution in the heart
of the Deep Kerr deposit and returned mineralized widths as
predicted, at slightly higher copper and gold grades.
Chairman and CEO Rudi Fronk noted
that "these results should enable us to grow the Deep Kerr resource
which we believe is one of the keys to joint venturing KSM.
Drilling continues on the Deep Kerr expansion, as well as on
building an initial resource for this year's discovery at the Iron
Cap Lower Zone and testing additional higher grade core zone
targets. Approximately 24 holes will be drilled this year. Thus
far, results have only been released for five holes. We think the
best is yet to come."
Results from the first three drill holes on the Deep Kerr
deposit are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 Deep Kerr
Intercepts
|
Drill Hole
ID
|
Total
Depth
|
From
(meters)
|
To
(meters)
|
Interval
(meters)
|
Gold
(g/T)
|
Copper
(%)
|
Silver
(g/T)
|
K-14-28C
|
1304.5
|
900.0
|
1257.4
|
357.4
|
0.50
|
0.63
|
1.9
|
including
|
900.0
|
979.4
|
79.4
|
0.84
|
1.15
|
3.0
|
K-14-39
|
1272.4
|
508.0
|
694.4
|
186.4
|
0.19
|
0.43
|
1.0
|
|
781.4
|
945.4
|
164.0
|
0.34
|
0.33
|
1.0
|
|
945.4
|
1197.4
|
252.0
|
0.55
|
0.69
|
1.4
|
including
|
963.4
|
1106.4
|
143.0
|
0.68
|
0.81
|
1.7
|
K-14-40
|
1011.4
|
704.4
|
926.3
|
221.9
|
0.24
|
0.45
|
1.5
|
including
|
794.6
|
918.9
|
124.3
|
0.29
|
0.54
|
1.8
|
All holes were drilled perpendicular to the strike of the Deep
Kerr zone and were intended to intersect the true width of the
body. We believe these intersections therefore likely approximate
true width.
The KSM Project hosts multiple deposits containing one of the
largest undeveloped gold and copper reserves in the world (see news
release of June 29, 2012, disclosing
the details of KSM's most recent Prefeasibility Study on KSM). Its
composite intrusive complex hosts four known, large, gold-copper
porphyry deposits which are within the upper portion of the system
and have demonstrated vertical continuity down to near-magmatic
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 and the Iron Cap Lower Zone are the initial confirmations of
the existence of deep core zones beneath the porphyry deposits, as
predicted by Seabridge's model. Core zones are 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 is being
employed during the 2013 program including blank and reference
standards in every batch of assays. Cross-check analyses are being
conducted at a second external laboratory on 10% of the samples.
Samples are being 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 results
enabling the Company to grow Deep Kerr; (ii) the ongoing drilling
being sufficient for the calculation of an initial resource at the
Iron Cap Lower Zone; (iii) thinking the best results of 2014
drilling are yet to come; (iv) the reported intercepts representing
true widths; (v) the estimated amount and grade of mineral reserves
and mineral resources; (vi) estimates of capital costs of
constructing mine facilities and bringing a mine into production,
including financing payback periods; (vii) the amount of future
production; and (viii) 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 assayed or 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 drilling results being inconsistent
with expectations, risks of 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, 2012 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.