An updated, independent mineral resource model for Seabridge Gold's
(TSX: SEA)(NYSE Amex: SA) 100% owned Courageous Lake project in
Canada's Northwest Territories has (i) significantly increased the
measured and indicated gold resources (ii) improved the average
grade of the resource and (iii) increased the size of the deposit.
The next step is to incorporate the updated resource model,
prepared by Resource Modeling Inc. ("RMI") of Stites, Idaho, into a
new Preliminary Assessment ("PA") scheduled for completion in April
2011.
The new NI 43-101 compliant resource estimate prepared by RMI is
as follows:
Courageous Lake Gold Resources at 0.83 gram per tonne cutoff
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Measured Indicated
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Tonnes Grade Ounces Tonnes Grade Ounces
(000's) (g/T) (000's) (000's) (g/T) (000's)
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12,584 2.52 1,020 77,582 2.31 5,762
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Measured plus Indicated Inferred
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Tonnes Grade Ounces Tonnes Grade Ounces
(000's) (g/T) (000's) (000's) (g/T) (000's)
----------------------------------------------------------------------------
90,166 2.34 6,782 63,053 2.24 4,541
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Seabridge Gold President and CEO Rudi Fronk said the new model
"incorporates data from 49 diamond core holes drilled in 2010
totaling about 22,000 meters. The focus of the 2010 drilling
program was to upgrade inferred resources to higher categories.
Using the same cut-off grade as the 2007 resource model, measured
and indicated gold resources have increased by 60% while the
average grade of these categories improved by 5%. Nearly all of
that gain came from upgrading previously defined inferred resources
to measured or indicated categories. In addition, the 2010 drilling
found new inferred resources and increased the average grade of the
inferred by 13% from the 2007 estimate. The new resource model and
a substantially higher gold price should significantly enhance
project economics in the April 2011 PA. The 2008 PA was based on
$690 gold. In the current environment, we believe that Courageous
Lake could be a highly robust gold project."
For a detailed summary of the 2007 resource model see
http://www.seabridgegold.net/NFeb28-07.pdf and for the 2008 PA see
http://www.seabridgegold.net/NMar10-08.pdf.
The new resource model constructed for the Courageous Lake
deposit now incorporates data from a total of 560 holes drilled by
Seabridge, Noranda and Placer Dome totaling 150,584 meters. Gold
mineralization within the Courageous Lake deposit is hosted in the
upper part of an assemblage of Archean age felsic pyroclastic
rocks, just below a transition zone to volcanoclastic and
sedimentary rocks.
Similar to the 2007 estimate (also completed by RMI), block
model gold grades for this latest Courageous Lake model were
estimated using a multiple pass inverse distance weighting
interpolation procedure. The 2010 drilling program was highly
successful with the new drill hole assay data showing that (i) the
2007 model was a reasonable predictor of "ore and waste" and that
(ii) a back analysis of comparing the 2010 drill hole intersections
against the 2007 block model demonstrates a net gain of contained
gold. In addition to using mineral zone wireframes to constrain the
estimate of block grades, a dynamic anisotropic search strategy was
used to select eligible composites. The search ellipse was allowed
to dynamically conform to the hanging and footwall contacts of the
key mineral zones, providing for a more geologically consistent and
realistic distribution of in situ block gold grades. Individual
assay grades were capped for each zone prior to compositing the
assay data and interpolating block grades. The estimated block
grades were classified into Measured, Indicated, and Inferred
Mineral Resource categories using distance to drilling data and the
number of drill holes used to estimate the block grades. For the
principal mineral zones (3-5) Measured Resources were defined for
blocks estimated by one or more drill holes within 7.5 meters of
the block. For those same principal mineral zones, Indicated
Resources were defined by blocks estimated by two or more drill
holes with at least one sample within 30 meters of the block.
Inferred Mineral Resources were defined by blocks estimated by at
least one drill hole with a maximum allowable assay projection
distance of 65 meters. It is RMI's opinion that the new resource
model is globally unbiased and locally reflects the grade of nearby
drill hole composites.
The following table provides global resource estimates from the
new model at various gold cutoff grades:
Comparison of Courageous Lake Resources at Various Cutoff Grades
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Measured Indicated Inferred
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Cutoff
Grade Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
(g/T) (000) (g/T) (000) (000) (g/T) (000) (000) (g/t) (000)
----------------------------------------------------------------------------
0.40 16,448 2.07 1,095 103,358 1.89 6,281 92,242 1.72 5,101
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0.50 15,354 2.19 1.081 96,554 1.99 6,178 83,771 1.85 4,983
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0.60 14,416 2.29 1,061 90,403 2.09 6,075 76,276 1.98 4,856
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0.70 13,605 2.39 1,045 84,547 2.19 5,953 70,214 2.09 4,718
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0.80 12,825 2.49 1,027 79,182 2.28 5,804 64,822 2.20 4,585
----------------------------------------------------------------------------
0.83 12,584 2.52 1,020 77,582 2.31 5,762 63,053 2.24 4,541
----------------------------------------------------------------------------
0.90 12,017 2.60 1,005 73,996 2.38 5,662 59,521 2.32 4,440
----------------------------------------------------------------------------
1.00 11,308 2.71 985 69,156 2.48 5,514 54,525 2.45 4,295
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The cutoff grade for resource tabulation was set at 0.83 grams
per tonne, consistent with cut-off grade used for previous
Courageous Lake resource estimates. In all likelihood, the cut-off
grade that will be employed in the 2011 PA will be lower than 0.83
grams per tonne due to higher gold prices.
Gold resource estimates included herein were prepared by
Resource Modeling Inc. under the direction of Michael Lechner, who
is independent of Seabridge and a Qualified Person as defined by
National Instrument 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. The independent technical report
detailing the new Courageous Lake resource model will be filed on
SEDAR at www.sedar.com.
Exploration activities by Seabridge Gold at the Courageous Lake
gold 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. A rigorous quality control/quality
assurance protocol was employed during the 2010 Courageous Lake
drill program including blank and certified reference standards
inserted by the Company in every batch of assays. Repeats and
re-splits of the sample rejects were analyzed at a rate of not less
than one sample in every 25 for each type. Samples were assayed at
Acme Laboratories, Vancouver, B.C. using fire assay atomic
adsorption methods for gold and total digestion ICP methods for
other elements. Cross-check analyses were conducted at a second
external laboratory on at least 10% of the samples.
Seabridge holds a 100% interest in several North American gold
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 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 but many of
them relate to estimates and projections prepared in 2007 and 2008.
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 amount of
mineral reserves and mineral resources; (ii) the amount of future
production over any period; (iii) cumulative pre-tax net cash flow
of the proposed mining operation; (iv) capital costs; (v) operating
costs, including credits from the sale of other metals; (vi) mining
rates; (vii) mine life; (vii) planned expenditures; and (viii)
upgrading inferred resources. Any statements that express or
involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions 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
independent consultants' current beliefs as well as various
assumptions made by them and information available to them on the
date the statements are made. 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;
(x) metals recovery rates, (xi) reasonable contingency
requirements; (xii) receipt of regulatory approvals on acceptable
terms; and (xiii) the negotiation of satisfactory terms with
impacted 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 cumulative
pre-tax net cash flow, which are based on other forward-looking
statements and assumptions. The cost information is also prepared
using earlier 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 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 including those
described in the December 31, 2009 Corporation's Annual Information
Form filed with SEDAR in Canada (available at www.sedar.com) 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"
President & C.E.O.
Contacts: Seabridge Gold Inc. Rudi P. Fronk President and C.E.O.
(416) 367-9292 (416) 367-2711 (FAX) info@seabridgegold.net
www.seabridgegold.net
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