Mr. Rudi Fronk reports
SEABRIDGE GOLD DRILLING SUCCESSFULLY EXPANDS IRON CAP DEPOSIT AT KSM
The first two holes completed in this summer's drilling on the Iron Cap deposit at Seabridge Gold Inc.'s 100-per-cent-owned KSM project in northwestern British Columbia, Canada, have intersected some exceptional widths of gold and copper mineralization with grades exceeding the KSM resource average. Results from another 12 holes are expected in the next several weeks.
This year's principal exploration objectives were to test the down-plunge projection of the high-grade core zone of the Iron Cap deposit to the west of the current resource and evaluate the relative positioning between Iron Cap and the currently planned alignment of the Mitchell-Treaty tunnel (MTT). Due to its proximity to the MTT and its higher grade, Iron Cap could potentially improve KSM's economics by mining it before the Kerr deposit. The 2018 program successfully tested the down-plunge projection of the Iron Cap core zone, assessed the distribution of postmineral intrusions on the south end of the Iron Cap deposit and obtained data for the realignment of the proposed MTT to avoid conflicts with mining operations.
Seabridge chairman and chief executive officer Rudi Fronk commented: "Site conditions were challenging for this program, but we have still been able to realize the progress we anticipated. Our expectation is to extend and improve our resource model for Iron Cap, which is on course to becoming one of the best deposits in the KSM complex. A new resource estimate should be completed in the first quarter of the new year."
Results from two holes on the Iron Cap target are shown in the associated table.
2018 IRON CAP DRILL RESULTSHole IDHole lengthFromTo Thickness Gold grade Copper grade Silver grade(metres)(metres)(metres)(metres)(g/t)(%)(g/t)IC-18-74 855.4 802.5 855.452.9 0.70 0.343.7IC-18-74B1,687.8 837.5 872.034.6 0.46 0.43 11.2 967.1 1,199.3 232.2 0.30 0.251.0 1,270.3 1,354.183.8 0.42 0.291.1 1,412.2 1,508.195.9 0.38 0.351.2IC-18-75 1,662.1 878.3 914.336.1 0.54 0.391.3 991.6 1,574.3 582.7 0.59 0.411.4 including 1,063.3 1,158.395.0 0.84 0.621.1 including 1,192.3 1,250.257.9 1.00 0.441.5
The drill holes reported were designed to test down plunge and across the Iron Cap deposit. Intervals reported are approximately normal to the strike of the mineralized zone; however, hole orientations vary as collar locations are restricted due to topography. Additional drilling is required to confirm this thickness, which is anticipated as development progresses.
Hole IC-18-74 was collared northwest of the existing resource to test the plunge projection of the resource toward the MTT. The Sulphurets Thrust fault (STF) was intersected at 768 metres for a distance of 61.6 metres.Below the STF was an intensely sheared interval of intrusive rocks that continued to 855 metres.Drilling through this 89 metres of sheared, broken gouge zone presented numerous technical problem and after several days the hole was abandoned in favour of a wedged deviation hole IC-18-74B.
Diamond drill hole IC-18-74B was collared northwest of the existing resource to test the plunge projection of the deposit 300 metres east of the proposed intersection of the MTT. In this hole the STF was encountered at 768 metres and continued for about 80 metres in thickness. This abnormally thick intersection of the STF is thought to be caused by a strike change on the fault toward the north. Below the thrust fault, the hole encountered variably mineralized mixed intrusive rock and thermally metamorphosed sedimentary or hornfelsed rocks, indicative of the margin of the Iron Cap zone. From 815 to 1,525 metres, the hole passed through the downdip projection of the Iron Cap zone, which returned mineralization similar to results obtained in 2017.
Drill hole IC-18-75 was collared in the central part the resource and drilled steeply into the plunge projection of Iron Cap. The STF was intersected between 835 and 856 metres, and below it a zone of mixed, altered sedimentary and brecciated rocks was found characteristic of the margins of the Iron Cap zone. At 920 metres the hole passed out of the mixed marginal rocks into the main Iron Cap zone with results as predicted.
Mineral reserves and resources at KSM are as shown in the associated tables.
PROVEN AND PROBABLE MINERAL RESERVES ReserveTonnes Average Grades Contained metalcategory (millions)Gold Copper SilverMoly Gold Copper Silver Moly(g/t)(%)(g/t) (ppm) (M ounces) (M pounds) (M ounces) (M pounds)Proven4600.68 0.173.159.2 10.11,767 45 60Probable1,7380.51 0.222.538.2 28.78,388138147Total 2,1980.55 0.212.642.6 38.8 10,155183207MEASURED AND INDICATED MINERAL RESOURCES (INCLUSIVE OF PROVEN AND PROBABLE RESERVES) ResourceTonnes Gold CopperSilverMolybdenumCategory (000) Grade OuncesGrade PoundsGradeOunces Grade Pounds (g/t)(000)(%) (millions)(g/t) (000) (ppm) (millions)Measured 750,1000.63 15,127 0.172,8443.277,39958 96Indicated2,174,4000.49 34,103 0.23 10,8792.5 175,30953217Total2,924,5000.52 49,230 0.21 13,7232.7 252,70855313 INFERRED MINERAL RESOURCESDepositTonnesGold Copper SilverMolybdenum(000) Grade OuncesGrade PoundsGradeOuncesGrade Pounds(g/t)(000)(%) (millions)(g/t) (000)(ppm) (millions)Mitchell478,4000.386,414 0.101,2323.048,723 55 55Sulphurets182,3000.462,696 0.145631.3 7,619 28 11Kerr2,001,5000.31 19,746 0.41 17,6722.1 133,689 23103Iron Cap1,297,4000.48 20,023 0.308,5792.9 120,970 34 97Totals3,959,6000.38 48,879 0.32 28,0462.4 311,001 34266 NoteMineral resources which are not mineral reserves do not have demonstrated economic viability. Seabridge believes it is reasonable to expect that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.
Exploration activities by Seabridge at the KSM project are being conducted under the supervision of William E. Threlkeld, registered professional geologist, a 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. A continuing 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 per cent Cu reanalyzed using ore-grade analytical techniques. Crosscheck analyses are conducted at a second external laboratory on at least 10 per cent of the drill samples. Samples are assayed at ALS Chemex Laboratory, Vancouver, B.C., using fire assay atomic adsorption methods for gold and ICP (inductively coupled plasma) methods for other elements.
Seabridge holds a 100-per-cent interest in several North American gold projects. The company's principal assets are the KSM project and Iskut project located near Stewart, B.C., Canada, and the Courageous Lake gold project located in Canada's Northwest Territories.
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