Seabridge Begins Drilling Walsh Lake High Grade Gold Target at Courageous Lake Project
March 7, 2013 (Source: Marketwire) Toronto, ON — Seabridge Gold (TSX:SEA)(NYSE:SA) has begun core drilling the high grade Walsh Lake gold target at its 100%-owned Courageous Lake project in Canada’s Northwest Territories. The $3.1 million winter program is expected to complete 16 holes totaling 7,400 meters with the aim of generating an initial resource estimate for the Walsh Lake deposit which was discovered last year (see news release of September 10, 2012).
Last year’s summer program at Walsh Lake completed 23 core holes totaling 10,211 meters. The results exceeded expectations with 22 of 23 holes returning significant gold values including 26 intercepts above 15 grams per tonne (approximately half an ounce per tonne). The Walsh Lake zone now has a strike length of 850 meters and remains open to the north, up dip and at depth.
The Walsh Lake target is located about 10 kilometres south of the FAT deposit where Seabridge has developed a 6.5 million ounce proven and probable gold reserve (see reserve table below). The north part of this target area is connected by a road network between the FAT deposit and the historical high grade Tundra Gold Mine. Walsh Lake is believed to be a series of structural zones, parts of which are on strike with the deposits exploited in the Tundra Gold Mine.
Seabridge Chairman and CEO Rudi Fronk noted that the remarkable continuity of Walsh Lake’s drill results to date support the potential for the winter program to provide the basis for an initial resource estimate for the deposit. “Walsh Lake could make a significant contribution to the economics of the overall Courageous Lake project. With its location and ease of access, higher grade material from Walsh Lake could be processed first which would accelerate payback of capital as well as extending mine life. This result would certainly accomplish the objectives set last year when we went looking for additional deposits at Courageous Lake.
Mr. Fronk noted that, “Courageous Lake is an exciting asset, not only because of the large FAT deposit but also because we own 53 kilometres of a Greenstone Belt which has gold mineralization over its entire length. Investing in our extensive land package in the belt beyond the FAT deposit is beginning to pay off. Our team has developed other targets that we believe could also augment existing reserves.”
Proven and probable gold reserves at Courageous Lake estimated as of July 2012 are as follows (see news release dated July 24, 2012 for details):
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Exploration activities by Seabridge Gold at the Courageous Lake gold 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 approved the disclosure in this news release. In order to verify the test data a rigorous quality control/quality assurance protocol is being employed during the 2013 Courageous Lake drill program including blank and certified reference standards inserted by the Company at a rate of not less than one of each type in every 30 samples. Repeats and re-splits of the sample rejects are being analyzed at a rate of not less than one sample in every 25 for each type. Samples are being assayed at Acme Laboratories, Vancouver, B.C. using fire assay atomic adsorption methods for gold and total digestion ICP methods for other elements. Intervals that exceed 10.0 g/t Au are methodically re-analyzed using metallic screen fire assay techniques. Cross-check analyses are being conducted at a second external laboratory on at least 10% of the samples.
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.
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 extent of the proposed program and whether its results will enable the Company to prepare a resource estimate at Walsh Lake; (ii) the Walsh Lake deposit making a significant economic contribution to the Courageous Lake project and augmenting reserves; (iii) the estimated amount and grade of mineral reserves and estimates underlying the reserve determination, including estimates of the capital costs of constructing mine facilities and bringing a mine into production, the amount of future production and estimates of operating costs, net cash flow and economic returns from an operating mine; (vi) submission of an Environmental Impact Statement and permit applications for Courageous Lake and the timing thereof; and (vii) the prospect of obtaining necessary permits and proceeding with the construction and operation of a 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 observed or 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) 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 mineralized material identified, in particular 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, 2011 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.
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