Seabridge Gold Inc. (TSX:SEA) (NYSE:SA) announced today that this
summer’s program at its 100%-owned KSM Project in north western
British Columbia, Canada is meeting its objectives after early
delays due to adverse weather and the impact of BC fire season on
equipment and labour availability.
The 2018 program includes confirmation work to
ensure that the project is ready for final feasibility when a
partner is secured and exploration drilling to further define the
higher grade core of the Iron Cap deposit down-plunge from the
existing inferred resource. The confirmation work has consisted of
drilling to substantiate our reserve model (completed), waste
characterization drilling and geotechnical drilling (nearly
completed). Six diamond drill rigs have been employed to ensure
that objectives are met.
Seabridge Chairman and CEO Rudi Fronk commented:
“Weather conditions were far different this year than what we have
experienced at KSM over the past decade, forcing us to make program
adjustments on the fly. Also, the unprecedented fire activity
throughout the province and in our area limited our access to some
services. We are now on top of these issues and we expect to
complete our planned program by extending our field season by
several weeks. Results thus far indicate that all of our
confirmation work is consistent with our development model and the
inferred resource at Iron Cap will grow substantially.”
Reserve Confirmation
DrillingFive holes totaling 1,746 meters were sited
to confirm the mineral reserves in those areas where production
would likely begin. Drill holes in the Mitchell, Sulphurets and
Kerr deposits confirmed block grades comparable to model
predictions. Results include:
2018 Mineral Reserve Confirmation Drill
Results
Hole ID |
Hole Length (meters) |
From (meters) |
To (meters) |
Thickness (meters) |
Gold Grade (g/T) |
Copper Grade (%) |
Silver Grade (g/T) |
M-18-132 |
380 |
5.9 |
380 |
374.1 |
0.84 |
0.20 |
3.36 |
M-18-133 |
54 |
5.5 |
54 |
48.5 |
0.86 |
0.18 |
2.63 |
M-18-134 |
381 |
4.5 |
381 |
376.5 |
0.79 |
0.27 |
5.49 |
K-18-53 |
501 including |
70.7 |
205.0 |
134.3 |
0.26 |
0.41 |
1.78 |
275.1298.0 |
498.0362.7 |
222.964.7 |
0.280.48 |
0.511.06 |
1.942.24 |
S-18-80 |
430 |
106.7 |
164.0 |
57.3 |
0.41 |
0.21 |
0.45 |
193.7 |
272.4 |
78.7 |
0.78 |
0.36 |
0.74 |
283.8 |
310.0 |
26.2 |
0.80 |
0.07 |
0.46 |
324.5 |
348.0 |
23.5 |
0.93 |
0.04 |
1.39 |
367.0 |
430.0 |
63.0 |
0.57 |
0.05 |
0.70 |
The drill holes reported above were designed to
test specific zones within KSM’s mineral reserves and were not
designed to test true thicknesses of the deposits. Each of the
reported holes ended in mineralization.
Waste Characterization
DrillingA total of eight drill holes orientated into the
margins of the Mitchell and Sulphurets deposits have been completed
and an additional four holes are planned for a total of 4,919
meters. These holes were designed to test an updated block model of
waste types on the margins of the deposits. Additional analytical
work is continuing on these drill holes, however initial inspection
indicates the block model is performing well. The updated block
model did not capture several narrow un-mineralized intrusions
encountered in this drilling. These occurrences will be included
when the model is modified and are expected to reduce the volume of
potentially acid-generating waste rock.
Geotechnical DrillingNine
geotechnical drill holes have been completed during the current
season, totaling 3,609 meters of drilling. The work focused on
evaluating the material properties of fractures and faults on the
planned pit high-walls. Results will be used to plan additional
work for the Mitchell and Sulphurets deposits. Planned
hydrogeological pump tests were abandoned for this season, in part
due to the exceptionally dry weather.
Exploration DrillingEight
exploration drill holes at Iron Cap have been completed and the
final five are in progress, totaling about 16,700 meters of
drilling. The exploration drill program was designed to continue
testing the core zone of the Iron Cap deposit down plunge to the
west. Initial indications are that the deposit approaches near
vertical continuity to depth of at least 1,800 meters. Assay
results are expected shortly. (For details on the existing mineral
resources at Iron Cap please see our news release from February 13,
2018.)
Exploration activities by Seabridge at the KSM
Project are being 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. Mr. Threlkeld has reviewed and approved this
news release. An ongoing and rigorous quality control/quality
assurance protocol is employed in all Seabridge drilling campaigns.
The sampling program includes blank, duplicates and reference
standards, with all copper assays that exceed 0.25% Cu re-analyzed
using ore grade analytical techniques. Cross-check analyses are
conducted at a second external laboratory on at least 10% of the
drill samples. Samples are assayed at ALS Chemex Laboratory,
Vancouver, B.C., using fire assay atomic adsorption methods for
gold and ICP methods for other elements.
Seabridge holds a 100% interest in several North
American gold projects. The Company's principal assets are the KSM
Project and Iskut 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.
Neither the Toronto Stock Exchange, New York
Stock Exchange, nor their Regulation Services Providers accepts
responsibility for the adequacy or accuracy of this release.
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 expectation
that the 2018 KSM program will be completed and its objectives
achieved; (ii) the answers to due diligence questions being
favourable; (iii) the inferred resource at Iron Cap growing
substantially; (iii) the expected reduction in volume of
potentially acid-generating waste rock; and (iv) the Iron Cap
deposit extension approaching near vertical continuity. 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.
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 the
presence of projected mineralization, variations in the mineral
content or geotechnical characteristics within the material
identified as mineral reserves or mineral resources from that
predicted; 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; 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; 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, 2017 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 and
CEO
For additional information please contact:Rudi
Fronk, Chairman and CEOTel: (416) 367-9292
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