Seabridge Gold (TSX:SEA)(NYSE:SA) today reported the discovery of a very large and high-grade copper-gold zone below the Kerr deposit at its 100%-owned KSM gold-copper project located near Stewart, British Columbia, Canada. This discovery, named Deep Kerr, has the best metal values found to date at KSM, its grades and widths are improving with depth, the down dip potential remains wide open and it is favorably located for cost-effective exploitation.
Seabridge believes the Deep Kerr is an important discovery which could significantly improve KSM's already robust projected economics. It will be drilled aggressively in 2013 using the proceeds of the Company's recently-announced $24 million bought-deal flow-through financing.
Seabridge's aim in this year's exploration program at KSM was to search for higher temperature core zones that typically concentrate high-grade metals within very large porphyry systems such as KSM. Historically, these core zones generally have grades which are a multiple of those in the upper parts of the porphyry system where KSM's known deposits are found. Evidence compiled by Seabridge's team of geologists suggested that such a core was preserved intact on the KSM claims in close proximity to the known deposits and at a reasonable depth. Eleven targets were selected based upon geochemical analysis, mineralogy, metal distributions and geophysical surveys. The preliminary drill evidence suggests that Seabridge may have found the upper portion of a core zone below the known Kerr deposit.
Seabridge Chairman and CEO Rudi Fronk commented that "we found this prospective core zone target much sooner than we thought likely. Based on what we already know, we expect next year's drill program to define large additions to measured and indicated copper and gold resources by the end of 2013. We also have the potential for substantially more upside if Deep Kerr proves to be a core zone similar to others found near comparably-sized porphyry systems."
Mr. Fronk also noted that "our design for the KSM project has built in tremendous flexibility so this new discovery could fit seamlessly into our plans."
To view the figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/sea1108figures.pdf.
The drilling reported above was designed to establish geological continuity between the Deep Kerr target and the Kerr mineral resource.
The orientations of these holes were not intended to establish true widths of the mineral system and additional drilling is required for this purpose. The entire mineralized intercept in hole K-12-20, and the portion below a depth of 275 meters in hole K-12-21 are beyond the current resource limits. Assays from the final hole in the Deep Kerr program, K-12-22, are awaited. This final hole was drilled to test for the edge of the deposit to assist with the design of the 2013 drill program.
National Instrument 43-101 Disclosure.
Exploration activities at KSM are being conducted by Seabridge personnel under the supervision of William E. Threlkeld PGeo., Senior Vice President of Seabridge 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 during the 2012 program including blank and reference standards in every batch of assays. Cross-check analyses will be conducted at a second external laboratory on 10% of the samples. Samples will be assayed using fire assay atomic adsorption methods for gold, and ICP methods with atomic adsorption on concentrations over detection limits for other elements.
Seabridge holds a 100% interest in several North American gold 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. For a breakdown of Seabridge's mineral reserves and mineral resources by category please visit the Company's website at www.seabridgegold.net/resources.php.