The Opportunity

KSM is the world’s largest undeveloped gold project by resources (88.7M oz M&I plus 71.5M oz inferred) with 19.46 billion pounds of copper resources in the M&I categories plus 38.5 billion pounds in the inferred category. KSM has received its environmental approvals in one of the globe's safest and most stable jurisdictions.

The latest technical report describes a robust project that has the support of most of the nearby indigenous people and local communities:

• A 2022 Pre-Feasibility Study (“PFS”) captures proven and probable reserves of 47.3 million ounces of gold plus 7.3 billion pounds of copper and 160 million ounces of silver over a 33 year open pit mine life.  
• The 2022 PFS excludes resources totaling from the Kerr and Iron Cap deposits that could be mined after the 33 year open pit mine life.
• The 2022 study projects an after tax net present value (at 5%) of US$7.9 billion and a life of mine total cost (including all capital, reclamation and closure costs) of US$601 per ounce of gold produced after base metal credits. Over the 33 year mine life, average annual metal production is estimated at 1.0 million ounces of gold, 178 million pounds of copper and 3.0   million ounces of silver.

There are two important opportunities which Seabridge is now pursuing at KSM:

First, to ensure that KSM’s environmental approvals remain in place for the life of the project, Seabridge secured US$375 million in funding to undertake early site construction activities towards the project receiving “Substantially Started” designation. With this designation, the existing approvals remain in place for the life of the project. In January 2024, Seabridge filed the formal application with the B.C. regulators for a “Substantially Started” designation. In July 2024, the BC government determined that KSM has been “Substantially Started”.  Two petitions were later filed seeking to quash the decision to designate the KSM Project as “substantially started”.  One petition claims a breach by the Province of its duties to consult and proceed fairly, and that the decision was unreasonable. A second petition was filed by two NGOs also claiming that the decision was unreasonable.  Seabridge will participate in defending the decision, is confident that consultation took place and believes there is ample evidence the decision was reasonable.  In the meantime, KSM's “Substantially Started” decision remains in force.  It may take a year for the court decision to be released.

Second, we have an opportunity to unlock the extraordinary value in KSM by establishing a joint venture with a global mining company able to finance, build and operate the project responsibly. Our objective is to retain a significant portion of the working interest in a KSM joint venture while minimizing our capital contribution. We believe that the 2022 PFS, along with a Substantially Started designation, strengthens our hands in our ongoing joint venture discussions.  Discussions continue with a number of large mining companies.