New Intercepts include 0.68 g/T gold and 0.30% copper over
514 meters
Additional rig moved to site to accelerate new
zone towards resource estimate
Trading Symbols: TSX:
SEA
NYSE:
SA
TORONTO, Sept. 3, 2014 /CNW/ - Seabridge Gold
announced today that early results from this year's drill program
at its 100%-owned KSM Project in northwestern British Columbia, Canada have confirmed a
major new gold-copper occurrence beneath Iron Cap, one of the
project's four large porphyry deposits. The discovery, which began
to emerge in the 2013 drill program, is called the Iron Cap Lower
Zone. The drill program is now being intensified in order to
generate sufficient data for an initial resource estimate expected
by January, 2015.
Commenting on the news, Chairman and CEO Rudi Fronk noted that "a key objective for this
year's drilling is to find additional higher grade core zones
following last year's major discovery of the Deep Kerr deposit. The
potential below Iron Cap was our number one new target because of
where it is. Iron Cap Lower Zone sits about 1000 meters laterally
from the access tunnels designed for the KSM project which should
make it efficient to develop and mine. Also, the existing Iron Cap
deposit is already designed as an underground block cave mine.
Extending this deposit down plunge into higher grade gold and
copper in the Lower Zone could significantly improve the Iron Cap
deposit with little change to the KSM project design," Fronk
said.
Last year's Deep Kerr core zone discovery resulted in an initial
inferred resource of 515 million tonnes averaging 0.53% copper and
0.36 g/T gold, a substantial grade improvement compared to the Kerr
Deposit lying above it.
Iron Cap currently hosts a probable reserve of 193 million
tonnes grading 0.45 g/T gold, 0.20% copper and 5.32 g/T silver.
Drilling below the Iron Cap deposit in 2013 obtained promising
results, particularly IC-13-49 which returned 207 meters of 1.22
g/T gold. However, 2013 drilling did not test the width and strike
of the projected core zone due to a lack of suitable drill pad
locations. 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 using advanced steering equipment capable of
altering the orientation of the drilling as it progresses. These
new holes indicate that the Lower Zone has excellent size and
continuity as well as higher grades than the Iron Cap deposit above
it. IC-14-53 and 54 demonstrate the intensive and extensive
potassic alteration, characterized by secondary orthoclase and
abundant quartz-feldspar-sulfide veins, which confirm the presence
of a core zone and should lead to better grades at depth.
The following table summarizes all the holes drilled into the
Lower Zone. Holes drilled last year and previously released are
included to provide a more complete picture of the deposit and its
emerging resource potential. New drill data is separated in the
table to ensure clarity.
Iron Cap Lower
Zone Intercepts
|
Drill Hole
ID
|
Total
Depth
|
From
(meters)
|
To
(meters)
|
Interval
(meters)
|
Gold
(g/T)
|
Copper
%
|
Silver
(g/T)
|
2013 Drill
Results
|
IC-13-48
|
1011
including
|
346.5
|
839.8
|
493.3
|
0.30
|
0.30
|
3.2
|
346.5
|
425.4
|
78.9
|
0.72
|
0.37
|
5.4
|
IC-13-49
|
1035
including
|
9.0
|
1032.4
|
1023.4
|
0.77
|
0.24
|
5.2
|
485.2
|
692.4
|
207.2
|
1.22
|
0.45
|
4.5
|
IC-13-50
|
432
|
286.0
|
321.0
|
35.0
|
1.38
|
0.38
|
9.7
|
IC-13-51
|
1169
|
884.0
|
956.4
|
72.4
|
0.55
|
0.26
|
2.1
|
IC-13-52
|
1071
|
308.4
|
506.4
|
196.9
|
0.34
|
0.44
|
2.3
|
2014 Drill
Results
|
IC-14-53
|
1329.4
|
488.4
|
1002.4
|
514.0
|
0.68
|
0.30
|
5.2
|
including
|
635.4
|
727.4
|
92.0
|
1.47
|
0.34
|
3.1
|
IC-14-54
|
1107.0
|
322.4
|
832.5
|
510.1
|
0.41
|
0.28
|
10.5
|
including
|
599.4
|
713.0
|
112.4
|
0.44
|
0.40
|
22.1
|
including
|
717.6
|
832.5
|
114.9
|
0.61
|
0.20
|
3.6
|
Holes IC-14-53 and 54 were oriented to cross the structure at
approximate right angles and therefore these two intercepts likely
represent a close approximation to true width. More drilling now in
progress will help to confirm the width of the Lower Zone and also
expand both its strike and depth extent.
The KSM Project represents an entire 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 and the Iron Cap Lower Zone are the
initial confirmations 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 (such as potassic
alteration) usually associated with significantly higher metal
content. Seabridge believes that additional core zones are likely
to be discovered at KSM.
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 2014 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 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 ability and
timing to complete a resource estimate for the Iron Cap Lower Zone;
(ii) the location of the Iron Cap Lower Zone making it more
efficient to mine and develop; (iii) the presence of additional
core zones on the Project and the objective of finding more core
zones on the Project; (iii) drilling confirming the presence of a
core zone which should lead to better grades at depth; (iv)
extending the existing Iron Cap deposit down plunge significantly
improving the Iron Cap deposit with little change to KSM Project
design; (v) the 2014 intercepts likely representing true widths;
(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.