Seabridge Gold

FEATURED PROJECTS: KSM, Courageous Lake, Iskut


The KSM Project is one of the largest undeveloped gold projects in the world measured by reserves. An updated Preliminary Feasibility Study (PFS) estimates proven and probable reserves total 38.8 million ounces of gold and 10.2 billion pounds of copper (see table). The KSM Project has completed a joint harmonized environmental assessment review as outlined by the British Columbia Environmental Assessment Act and the Canadian Environmental Assessment Act. In July, 2014 the project received its Environmental Assessment Certificate from the provincial authorities. Final federal approval was received in December, 2014.

Current Programs:

Exploration continues to produce major improvements in the economic and environmental parameters of KSM. From 2013 to 2016, Seabridge successfully targeted higher grade zones beneath KSM's near surface porphyry deposits, resulting in the discovery of Deep Kerr (2013) and the Iron Cap Lower Zone (2014). These discoveries led to sizeable resource expansions of higher grade material configured for low cost block cave underground mining. This mining technique substantially reduces the project footprint and waste generation.

Based on these exploration successes, we announced an updated Preliminary Feasibility Study on September 19, 2016 (see news release). This PFS did not include the higher grade Deep Kerr and Iron Cap Lower Zone deposits because their resources are inferred only. These deposits were integrated into a new PEA study of KSM released on October 6, 2016 (see news release). This study confirmed significant further gains for KSM including estimated Base Case Life of Mine Operating Costs (net of Cu and Ag credits) of negative US$179 per ounce of gold produced. Total Cost (including all capital, operating and closure costs and net of credits) was estimated at US$358 per ounce of gold produced. The new design also results in a much smaller footprint; 2.4 billion tonnes (or 81%) less waste rock is generated compared to the 2016 PFS.

Exploration in 2017 generated further gains. In 2016, the last exploration hole drilled (IC-16-62) made two important discoveries at the Iron Cap deposit: the down plunge extension of Iron Cap's higher grade core zone where a 556 meter intercept averaged 0.83g/T Au and 0.24% Cu; and a new distinctly separate mineralized zone near surface which returned a 61 meter interval averaging 1.2 g/T gold and 0.95% copper.

In 2017, we drilled an additional 11 holes at Iron Cap with extraordinary results. Hole 72 returned 858 meters of 0.86 g/T gold and 0.51% copper including 113 meters of 2.98 g/T gold and 1.56% copper. The success of this drilling indicates that Iron Cap is approaching the size of the Mitchell and Kerr deposits but with zones of considerably higher metal values. We now see the early development of Iron Cap as a high priority for further study due to its grade, location and size. Revising the project's mine plan to reflect this thinking will likely have a positive impact on KSM's projected economics.

An updated resource estimate for Iron Cap is expected in the first quarter of 2018. Further exploration at Iron Cap is projected for this year.

Courageous Lake

The project's first Preliminary Feasibility Study (PFS) was released in July 2012 which estimated proven and probable reserves of 6.5 million ounces of gold in the open-pit FAT Deposit. The PFS predicts average annual production of 385,000 ounces at an estimated cash operating cost of $780 per ounce and a mine life of 15 years (see news release of July 24, 2012). The 33,030 hectare Courageous Lake Project covers almost all of the 53 km long Mathews Lake Greenstone Belt which historically hosted two high grade gold mines and has gold showings all along its length.

Current Programs:

The current focus of work at Courageous Lake is to improve its economics by adding higher grade resources and extending mine life. A high-grade gold discovery was made at Walsh Lake in 2012 and subsequent drilling in 2013 increased its size and confirmed its continuity (see news release of May 13, 2013). An initial resource estimate for Walsh Lake was subsequently announced: 4.62 million tonnes of inferred resources grading 3.24 g/T for a total of 482,000 ounces of gold (see news release of March 11, 2014). Metallurgical testing has confirmed up to 95% recoveries of the gold from the free-milling Walsh Lake material. Based on these factors, the Walsh Lake deposit could be mined prior to constructing the processing plant required for the larger, refractory FAT deposit. This order of development could have significant economic benefits for the Courageous Lake project not only by extending mine life but also by generating cash flow to pay for some capital costs as the FAT deposit ramps up.

In early 2018, Seabridge commenced a winter drill program to find more Walsh Lake-style deposits. The planned 36 hole, 7,200 meter program will test seven separate targets along the same geophysical and stratigraphic break that hosts the Walsh Lake Deposit. Seabridge is also continuing with environmental and engineering programs to advance the project towards permitting and enhance its design.


The Iskut Project was obtained with the closing of Seabridge's acquisition of SnipGold Corp. in June, 2016. The property is located in northwestern British Columbia, about 110 km northwest of Stewart, BC and 30 km by air from Seabridge's KSM Project. The Iskut property consists of a contiguous block of 100 BC Mineral Claims, 2 Mineral Leases and 13 Crown Grants covering 29,436 hectares (294 km²) situated in the Liard Mining Division. The property includes the former high grade gold Johnny Mountain Mine and the copper-gold Bronson Slope deposit.

Current Programs:

In 2017, Seabridge completed its first exploration program on the Quartz Rise target on the Iskut Project. Ten core holes were completed totalling 4,459 meters.

Last year's drilling found evidence of a gold-bearing intermediate sulfidation epithermal system beneath the Quartz Rise lithocap as anticipated. Intercepts included 1.5 meters grading 8.26 g/T gold in QR-17-01 and 1.5 meters grading 74.1 g/T gold in QR-17-07. Sampling of a cliff face north of Quartz Rise returned very high grades ranging from 1.49 to 125.3 g/T gold. An economic source for these gold concentrations was not found in the 2017 drilling but the data acquired in the program defined a target which could account for these high grade results. A second exploration program is being planned for next year to pursue this target.

Last year's drilling was designed to test a graben feature discovered during surface work on the Quartz Rise lithocap. This graben appears to have constrained the most intense hydrothermal alteration in the area of the lithocap. Drilling focused on the southeastern portion of the graben. Further geophysical work completed at the end of the program suggests that a better target lies within the graben to the northwest. This year's work will include additional geophysical surveys and drilling along strike of this graben to the northwest. Drill tests will be orientated to optimize intersections with northeast structures and stratigraphic intervals which the 2017 program determined to be the most favorable for higher gold concentrations. Iskut's similarities with KSM are persuasive and this knowledge should help zero in on the potential at Quartz Rise.

Iskut's similarities with KSM are persuasive and this knowledge should help zero in on the potential at Quartz Rise.

In conjunction with its exploration program, Seabridge is also undertaking environmental work to ensure compliance with existing authorizations and to begin remediation programs required to mitigate the impacts of historical mining activity. This program includes a comprehensive evaluation of best practices for remediation on the property drawing upon the Seabridge environmental team’s experiences at KSM as well as engagement with the Tahltan First Nation and BC regulatory officials.