Trading Symbols:
TSX: SEA
NYSE: SA
TORONTO, Oct. 16, 2014 /PRNewswire/ - Seabridge Gold
announced today additional results from this year's drill program
at its 100% owned KSM Project in northwestern British Columbia, Canada. Results from
the Iron Cap Lower Zone continue to outline a major new gold-copper
discovery beneath Iron Cap, one of KSM's four large porphyry
deposits. Data from eight new holes released today and seven holes
announced previously (see news release of September 3, 2014) are expected to support an
initial resource estimate for the Iron Cap Lower Zone scheduled for
Q1, 2015.
Commenting on the news, Chairman and CEO Rudi Fronk noted that "we are just beginning to
define the size and shape of the Lower Zone at Iron Cap. Thus far,
we have traced the deposit along a strike length of about 750
meters but the limits have not been found to the north and at
depth. Drill grades are running higher than the average reserve
grade for the Iron Cap zone found above. The highest grade areas
are in the north, where IC-14-059 intersected a spectacular 592.7
meters averaging 1.14 grams per tonne of gold and 0.37% copper,"
Fronk said.
Since 2012, Seabridge's exploration focus at KSM has been to
look for higher grade core zones beneath the project's large
porphyry deposits. Core zones are typically formed under higher
temperature and pressure conditions, resulting in a mineralogical
character typically associated with significantly higher metal
content. The first core zone discovery was made last year beneath
the Kerr porphyry, where drilling defined a large copper-rich
deposit called Deep Kerr. A second core zone was discovered
this summer below the Iron Cap porphyry. Both Deep Kerr and the
Iron Cap Lower Zone have the characteristics typical of core zones,
with higher grades than the porphyry deposits above them. Drilling
this summer has focused on both of these discoveries with the aim
of increasing the existing resource estimate at Deep Kerr and
generating an initial resource estimate below Iron Cap. Several
other core zone targets are also being drilled.
The Iron Cap Lower Zone is a series of related,
intermediate-composition intrusions, each with a unique alteration
mineral assemblage including potassic, phyllic, and silicic
alteration, all of which contain copper, gold and silver. Drill
holes that targeted the southwestern and southeastern strike
projections of the target zone (IC-14-053, 054, 054A, 055 and 057)
penetrated numerous intrusive events where variable grade is
enhanced in the contact zones between these intrusions. The holes
drilled along the northern strike projection (IC-14-056, 058, 059,
060, 061) encountered more consistent intrusive rock with much less
grade variability. Hydrothermal alteration in these holes to
the north exhibit vertical continuity over the 1,000 meters tested
so far, indicating significant potential at depth, particularly
down an apparent north-northwest plunge. Future work at Iron Cap
will focus on this orientation to look for more of the higher grade
material found in IC-14-059 (see drill hole location map and
cross-sections at www.seabridgegold.net/pdf/ICmap3.pdf).
Drill hole IC-14-61 approaches to within 1,000 meters of the
proposed Mitchell-Treaty Twin Tunnel alignment, potentially making
the Iron Cap Lower Zone an attractive early development option with
lower capital and operating costs than other deposits at KSM which
are further from key infrastructure.
The following table summarizes the eight most recent holes
drilled into the Lower Zone:
Iron Cap Lower
Zone Drill Intercepts
|
Drill Hole
ID
|
Total
Depth
|
From
(meters)
|
To
(meters)
|
Interval
(meters)
|
Gold
(g/T)
|
Copper
%
|
Silver
(g/T)
|
IC-14-054A
|
1050
|
604.4
823.8
|
872
852
|
267.6
28.2
|
0.39
1.20
|
0.23
0.29
|
4.8
1.7
|
including
|
IC-14-055
|
624.3
|
193.6
|
253.2
|
58.6
|
0.37
|
0.29
|
3.1
|
|
|
257.5
331.0
|
624.3
375.3
|
366.8
44.3
|
0.59
1.02
|
0.17
0.24
|
2.5
2.1
|
including
|
IC-14-056
|
1095.8
|
163.1
|
324
|
160.9
|
0.21
|
0.35
|
3.3
|
|
396.4
|
556.4
|
160.0
|
0.45
|
0.30
|
6.5
|
|
582.4
|
853.4
|
271.0
|
0.25
|
0.24
|
9.3
|
|
879.4
|
1095.8
|
216.4
|
0.46
|
0.16
|
2.5
|
IC-14-057
|
927.4
|
176
|
600.2
|
424.2
|
0.40
|
0.22
|
4.0
|
including
|
459.4
|
589.4
|
130.0
|
0.31
|
0.35
|
2.6
|
IC-14-058
|
1143.3
|
5.9
404.3
|
802.4
802.4
|
796.5
397.4
|
0.39
0.52
|
0.22
0.22
|
4.8
1.6
|
including
|
|
1001.3
|
1143.3
|
142.0
|
0.49
|
0.31
|
2.5
|
IC-14-059
|
1032.0
|
1.6
|
159.0
|
157.4
|
0.45
|
0.38
|
4.4
|
|
178.7
221.8
|
771.4
400.0
|
592.7
178.2
|
1.14
1.68
|
0.37
0.38
|
3.7
3.9
|
including
|
IC-14-060
|
967.1
|
124
256.0
|
525.3
286.0
|
401.3
30.0
|
0.47
1.15
|
0.17
0.27
|
8.0
40.6
|
including
|
IC-14-061
|
1152.4
|
431.4
|
794.4
|
362.5
|
0.38
|
0.28
|
6.8
|
|
876.2
|
1152.4
|
276.2
|
0.46
|
0.31
|
2.0
|
Holes listed above were drilled at several angles and
directional drilling tools were used to modify the orientation of
holes while in progress. The current evaluation cannot establish
the extent to which these intercepts represent true thickness of
the mineral zones. Sectional and three-dimensional modeling
will be employed to refine the true thickness of this zone in
preparation for a resource estimate. Lower Zone holes have
generally been drilled at 150 to 200 meter spacings to support the
resource estimation process. The upper portions of some of the
these holes are within the proposed Iron Cap mine plan and are
therefore already included in current reserves and resources.
The KSM Project represents a mining district hosting multiple
deposits and containing one of the largest undeveloped gold and
copper reserves in the world. Four defined intrusive complexes
contain large gold-copper porphyry deposits hosted within the upper
portion of the system with 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 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 typically
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 are assayed using fire assay atomic adsorption methods for
gold and 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
and an increased resource estimate at Deep Kerr; (ii) the proximity
of the Iron Cap Lower Zone to the Mitchell-Treaty tunnels alignment
making it an attractive early development option with lower capital
and operating costs than other KSM deposits; (iii) the significant
potential at depth down the north-northwest plunge at the Iron Cap
Lower Zone; (iv) Seabridge's belief that additional core zones will
be discovered at KSM; (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 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; 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.