2014 Drill Program Adds about 400 meters of
Strike and 300 meters of Depth Extension
Trading Symbols:
TSX: SEA
NYSE: SA
TORONTO, Nov. 20, 2014 /CNW/ - Seabridge Gold today
reported the complete drill results from its 2014 exploration
drilling campaign at the Deep Kerr deposit on its 100%-owned KSM
Project in Northwestern British Columbia,
Canada. A total of 12,900 meters in 13 core holes
successfully expanded the known dimensions of the deposit along
strike to the north and south as well as at depth. Drilling also
confirmed the geological and resource models developed following
the 2013 discovery program. Seabridge is highly confident that the
2014 results will support a substantial increase in the Deep Kerr
inferred resource which currently stands at 515 million tonnes
grading 0.53% copper and 0.36 g/T gold. A new resource estimate is
expected in the first quarter of 2015.
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). KSM's
composite intrusive complex hosts four known, large, gold-copper
porphyry deposits within the upper portions of their mineralizing
systems. Seabridge believes these porphyry deposits have continuity
down to near-magmatic, higher grade core zones. This vertical
zonation is typical of many of the world's largest mining
districts. Pursuing this model, Seabridge has discovered two core
zones to date-Deep Kerr and the Iron Cap Lower Zone. Core zones are
formed under higher temperature and pressure conditions, resulting
in a mineralogical character usually associated with significantly
higher metal content.
Seabridge Chairman and CEO Rudi
Fronk noted that "our program this year was focused
principally on expanding the Deep Kerr resource and also expanding
our understanding of its limits and controls on mineralization. It
is clear from this program that the resource model is robust-it
successfully predicts metal distribution. This year's drilling
demonstrates that the Deep Kerr high-grade zones are controlled by
primary fluid pathways within mineralizing intrusions, an
observation reflected in the high vein and fracture densities which
are positive for higher grades. We have also determined that the
depth and south limits remain open. Deep Kerr continues to emerge
as one of the more promising opportunities on a global scale".
Model Confirmation Drilling
Two holes (K-14-25D and
28C) were drilled into the existing resource to evaluate the
performance of the model by determining how well the new data
matched up against the model's predicted block grades. In order to
expedite this work, daughter holes were completed from two widely
spaced 2013 drill holes. In each case, the results showed
mineralized intervals consistent with those predicted by the model,
with differences in copper grades ranging from -12% to +30%. These
results are within the acceptable ranges for an inferred resource
classification, they are consistent with our expectation for a
predictive geological model and they provide confidence in the
reliability of our estimates.
North Strike Projection
The north strike projection of
the Kerr deposit was a primary target at the end of 2013. The
northernmost drill holes in the 2013 program intersected well
mineralized intrusive rocks. Three additional sections were
completed this year at 140 meter intervals stepping north from the
2013 data. Mineralized zones consistent with the Deep Kerr deposit
model were encountered in the first two cross section step-outs
(holes K-14-39, 43, 44 and 48), 280 meters north of previous
drilling. On the northern most section (holes K-14-41 and 41A), a
large interval of post mineral intrusive rock was intersected. The
high-grade Deep Kerr structures elsewhere are bounded by, or
coincident with, fault structures which remain open along strike.
It is not known if the Deep Kerr mineralization continues
north of this intrusion.
Depth Projection
Three drill holes (K-14-34A, 40 and
45) were targeted to provide mineralogical zoning indicators and
extend the depth projection of the Deep Kerr zone. Holes K-14-34A
and 45 were setup to drill down the interpreted Deep Kerr zone and
encountered long sections of the mineralized zone, however, this
orientation was difficult to maintain and technical limitations
terminated the holes before reaching the limits of the deposit.
These two holes therefore bottomed in strong mineralization. Hole
K-14-40 was drilled perpendicular to the zone. These tests confirm
that the Deep Kerr zone plunges west-northwest and continues to at
least 1350 meters below surface.
South Extension
In 2013, the south limit of the Deep
Kerr deposit was provisionally established at the southernmost
drill hole (K-13-26) in the zone at that time. As the 2014 program
progressed, it became clear the southern boundary was arbitrary.
Two drill holes were completed to confirm a southern extension, one
hole (K-14-42) at the southern limit of the 2013 resource model and
one hole (K-14-46) 550 meters beyond the 2013 model. These holes
confirm significant strike potential but additional drilling is
required to extend the resource model and establish the grade
distribution.
The following table provides the final assay results from the
2014 holes drilled at Deep Kerr:
2014 Deep Kerr Drill Intersections
Drill Hole
ID
|
Total
Depth
|
Target
|
From
(meters)
|
To
(meters)
|
Interval
(meters)
|
Gold
(g/T)
|
Copper
%
|
Silver
(g/T)
|
K-14-25D
|
1515
including
|
Model
Confirmation
|
910.4
|
1011.4
|
101.0
|
0.29
|
0.37
|
2.2
|
1025.3
|
1133.4
|
108.1
|
0.21
|
0.35
|
2.1
|
1185.6
|
1231.0
|
45.5
|
1.25
|
0.06
|
17.1
|
1300.8
1300.8
|
1486.4
1350.1
|
185.6
49.3
|
0.18
0.31
|
0.47
0.53
|
2.2
2.8
|
K-14-28C
|
1306
including
|
Model
Confirmation
|
900.0
900.0
|
1257.4
979.4
|
357.4
79.4
|
0.50
0.84
|
0.63
1.15
|
1.9
3.0
|
K-14-39
|
1272
including
|
North Strike
Extension
|
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
963.4
|
1197.4
1106.4
|
252.0
143.0
|
0.55
0.68
|
0.69
0.81
|
1.4
1.7
|
K-14-41
|
1080
|
North Strike
Extension
|
636.2
|
682.3
|
46.1
|
2.35
|
0.19
|
1.4
|
821.4
|
965.5
|
144.1
|
0.58
|
0.27
|
3.1
|
K-14-41A
|
1098
|
North Strike
Extension
|
618.0
|
847.0
|
229.0
|
1.12
|
0.07
|
1.0
|
K-14-43
|
1045
including
|
North Strike
Extension
|
512.5
512.5
|
659.5
546.5
|
147
34
|
0.53
0.64
|
0.71
1.01
|
2.5
5.3
|
689.5
|
757.5
|
68
|
0.31
|
0.31
|
0.8
|
K-14-44
|
995
|
North Strike
Extension
|
529.0
|
565.9
|
36.9
|
0.26
|
0.60
|
1.6
|
580.1
|
676.8
|
96.7
|
0.28
|
0.39
|
0.9
|
823
|
936.8
|
113.8
|
0.29
|
0.31
|
1.6
|
K-14-48
|
1212
including
|
North Strike
Extension
|
971.4
971.4
|
1161.3
1027.3
|
189.9
55.9
|
0.35
0.4
|
0.36
0.53
|
1.1
0.9
|
K-14-34A
|
1611
including
including
including
|
Depth
Projection
|
450.0
697.4
|
806.4
744.5
|
356.4
47.1
|
0.19
0.33
|
0.62
1.01
|
2.0
3.0
|
871.4
915.4
1551.4
|
1608.4
1165.4
1577.4
|
737
250
26
|
0.36
0.39
0.31
|
0.59
0.78
1.01
|
1.1
1.5
1.3
|
K-14-40
|
1011
including
|
Depth
Projection
|
704.4
794.6
|
926.3
918.9
|
221.9
124.3
|
0.24
0.29
|
0.45
0.54
|
1.5
1.8
|
K-14-45
|
1131
including
|
Depth
Projection
|
271.4
|
368.4
|
97.0
|
0.26
|
0.48
|
1.4
|
400.4
831.7
|
1123.0
1117.4
|
722.6
285.7
|
0.36
0.51
|
0.59
0.77
|
2.6
3.8
|
K-14-42
|
951
|
South
Extension
|
486.9
|
536.0
|
49.1
|
0.28
|
0.86
|
3.3
|
639.8
|
661
|
21.2
|
1.28
|
0.05
|
7.5
|
678.5
|
738.9
|
60.4
|
0.28
|
0.67
|
2.8
|
K-14-46
|
790
including
|
South
Extension
|
193.0
193.0
|
344.4
241.4
|
151.4
48.4
|
0.17
0.26
|
0.36
0.43
|
1.7
2.5
|
The holes drilled to test the model and the north and south
extensions and Hole K-14-40 were drilled in an orientation designed
to intersect the mineralized zone perpendicular to the strike and
accordingly the above intervals are believed to approximate true
widths of the mineralized zone. Holes K-14-34A and 45 were drilled
to test the depth projections, were not designed to evaluate the
true thickness of the mineralized interval and the width of these
zones is indicated from previous drilling at between 150 and 300
meters.
Exploration activities at KSM were 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 was
employed during the 2014 program including blank and reference
standards in every batch of assays. Cross-check analyses will be
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.
FORWARD LOOKING STATEMENT
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 an increased or expanded resource estimate for
the Deep Kerr deposit; (ii) that these porphyry deposits have
continuity down to near-magmatic, higher grade core zones; (iii)
that certain of the 2014 intercepts likely representing true
widths; (iv) the estimated amount and grade of mineral reserves and
mineral resources; (v) estimates of capital costs of constructing
mine facilities and bringing a mine into production, including
financing payback periods; (vi) the amount of future production;
and (vii) 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.