Quantcast

Seabridge Gold Files Technical Report on Deep Kerr Deposit

April 1, 2014

515 million tonnes of inferred resources average 0.53% copper, 0.36 g/T
gold

Trading Symbols:

TSX: SEA

NYSE: SA

TORONTO, April 1, 2014 /PRNewswire/ – Seabridge Gold announced today that it
has filed at www.sedar.com a National Instrument 43-101 compliant technical report on the
independent mineral resource estimate for the recently discovered Deep
Kerr Deposit at its 100%-owned KSM Project in northwestern British
Columbia, Canada. The report confirms an inferred resource of 515
million tonnes grading 0.53% copper and 0.36 g/T gold (5.9 million
ounces of gold and 6.1 billion pounds of copper).

Seabridge Chairman and CEO Rudi Fronk noted that Deep Kerr has the size
and grade of a world class deposit. “We have a high degree of
confidence that, with further work, Deep Kerr can mature into an
outstanding opportunity for a large, high margin operation attractive
to major mining companies. The resource model is based on a set of
realistic economic assumptions derived from the operating experience
for similar deposits now in production. Our work indicates that Deep
Kerr is very well situated for low cost, efficient underground block
cave mining.”

Mr. Fronk also noted that Deep Kerr is wide open to the north and down dip, supporting the
potential for substantial increases in both the size and grade of the
mineralized envelope. “We think the best is yet to come. Deep Kerr has
excellent continuity of grade vertically and laterally within the
deposit, which is helpful for mine planning and lower costs, but there
is also a strong apparent improvement in thickness and grade to the
north, which was the site of the last holes drilled in our 2013
program.”

For a full review of resource estimating procedures for Deep Kerr please
see the Technical Report filed on Sedar or the news release dated February 18, 2014.

To indicate the potential significance of Deep Kerr, Seabridge prepared
the following table of proven and probable reserves reported by major
producing copper-gold projects around the world. This data has been
assembled from the latest available public disclosures by these
companies:

     ____________________________________________________________________
    |              |               |             |  Tonnes  |Copper|Gold |
    |     Project  |       Owner   |   Location  |(millions)|Grade |Grade|
    |              |               |             |          | (%)  |(g/T)|
    |______________|_______________|_____________|__________|______|_____|
    |   Batu Hiju  |      Newmont  |   Indonesia |     439  | 0.40 |0.28 |
    |______________|_______________|_____________|__________|______|_____|
    |Bingham Canyon|    Rio Tinto  |United States|     704  | 0.49 |0.20 |
    |______________|_______________|_____________|__________|______|_____|
    |   Cadia East |Newcrest Mining|   Australia |   1,600  | 0.29 |0.49 |
    |______________|_______________|_____________|__________|______|_____|
    |    Grasberg  |     Freeport  |   Indonesia |     488  | 0.93 |0.88 |
    |______________|_______________|_____________|__________|______|_____|
    |   Oyu Tolgoi |    Rio Tinto  |   Mongolia  |   1,040  | 0.46 |0.31 |
    |______________|_______________|_____________|__________|______|_____|

The Deep Kerr resource estimate was prepared by Resource Modeling Inc.
under the direction of Michael Lechner, who is independent of Seabridge
and a Qualified Person as defined by NI-43-101. Mr. Lechner is a
highly-regarded expert in his field and frequently undertakes
independent resource estimates for major mining companies. Mr. Lechner
has reviewed and approved this news release. Exploration activities by
Seabridge at the KSM Project have been conducted under the supervision
of William E. Threlkeld, Registered Professional Geologist, Senior Vice
President of the Company and a Qualified Person as defined by National
Instrument 43-101. An ongoing and rigorous quality control/quality
assurance protocol was employed during the 2013 program including blank
and reference standards, in addition all copper assays that exceeded
0.25% Cu were re-analyzed using ore grade analytical techniques.
Cross-check analyses are conducted at a second external laboratory on
at least 10% of the samples. Samples were assayed at ALS Chemex
Laboratory, Vancouver, B.C., using fire assay atomic adsorption methods
for gold and total digestion ICP methods for other elements. Mineral
resources which are not mineral reserves do not have demonstrated
economic viability. Seabridge notes that inferred mineral resources
have a high degree of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. It cannot be
assumed that all or any part of an inferred resource will ever be
upgraded to a higher category.

Seabridge holds a 100% interest in several North American gold projects.
The Company’s principal assets are the KSM Project located near
Stewart, British Columbia, Canada and the Courageous Lake gold project
located in Canada’s Northwest Territories. For a full breakdown of
Seabridge’s mineral reserves and mineral resources by 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 estimated amount and grade of
mineral resources; (ii) the economic assumptions regarding production
costs of block cave mining that were used being realistic; (iii) the
Deep Kerr deposit being able to mature into an outstanding opportunity
for a large, high margin operation attractive to major mining
companies; (iv) the potential for substantial increases in the size and
grade of the mineralized envelope; and (v) the best being yet to come.
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. The principle
assumptions are listed above, but others 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, 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 & C.E.O.

SOURCE Seabridge Gold Inc.


Source: PR Newswire



comments powered by Disqus