Seabridge Gold Expects Substantial Expansion of Deep Kerr Resource at KSM
Press Release
November 20, 2014
2014 Drill Program Adds about 400 meters of Strike and 300 meters of Depth Extension
Toronto, Canada…Seabridge Gold today reported the complete drill results from its 2014 exploration drilling campaign at the Deep Kerr deposit on its 100%-owned KSM Project in Northwestern British Columbia, Canada. A total of 12,900 meters in 13 core holes successfully expanded the known dimensions of the deposit along strike to the north and south as well as at depth. Drilling also confirmed the geological and resource models developed following the 2013 discovery program. Seabridge is highly confident that the 2014 results will support a substantial increase in the Deep Kerr inferred resource which currently stands at 515 million tonnes grading 0.53% copper and 0.36 g/T gold. A new resource estimate is expected in the first quarter of 2015.
The KSM Project hosts multiple deposits containing one of the largest undeveloped gold and copper reserves in the world (see news release of June 29, 2012, disclosing the details of KSM’s most recent Prefeasibility Study). KSM’s composite intrusive complex hosts four known, large, gold-copper porphyry deposits within the upper portions of their mineralizing systems. Seabridge believes these porphyry deposits have continuity down to near-magmatic, higher grade core zones. This vertical zonation is typical of many of the world’s largest mining districts. Pursuing this model, Seabridge has discovered two core zones to date-Deep Kerr and the Iron Cap Lower Zone. Core zones are formed under higher temperature and pressure conditions, resulting in a mineralogical character usually associated with significantly higher metal content.
Seabridge Chairman and CEO Rudi Fronk noted that “our program this year was focused principally on expanding the Deep Kerr resource and also expanding our understanding of its limits and controls on mineralization. It is clear from this program that the resource model is robust-it successfully predicts metal distribution. This year’s drilling demonstrates that the Deep Kerr high-grade zones are controlled by primary fluid pathways within mineralizing intrusions, an observation reflected in the high vein and fracture densities which are positive for higher grades. We have also determined that the depth and south limits remain open. Deep Kerr continues to emerge as one of the more promising opportunities on a global scale”.
Model Confirmation Drilling
Two holes (K-14-25D and 28C) were drilled into the existing resource to evaluate the performance of the model by determining how well the new data matched up against the model’s predicted block grades. In order to expedite this work, daughter holes were completed from two widely spaced 2013 drill holes. In each case, the results showed mineralized intervals consistent with those predicted by the model, with differences in copper grades ranging from -12% to +30%. These results are within the acceptable ranges for an inferred resource classification, they are consistent with our expectation for a predictive geological model and they provide confidence in the reliability of our estimates.
North Strike Projection
The north strike projection of the Kerr deposit was a primary target at the end of 2013. The northernmost drill holes in the 2013 program intersected well mineralized intrusive rocks. Three additional sections were completed this year at 140 meter intervals stepping north from the 2013 data. Mineralized zones consistent with the Deep Kerr deposit model were encountered in the first two cross section step-outs (holes K-14-39, 43, 44 and 48), 280 meters north of previous drilling. On the northern most section (holes K-14-41 and 41A), a large interval of post mineral intrusive rock was intersected. The high-grade Deep Kerr structures elsewhere are bounded by, or coincident with, fault structures which remain open along strike. It is not known if the Deep Kerr mineralization continues north of this intrusion.
Depth Projection
Three drill holes (K-14-34A, 40 and 45) were targeted to provide mineralogical zoning indicators and extend the depth projection of the Deep Kerr zone. Holes K-14-34A and 45 were setup to drill down the interpreted Deep Kerr zone and encountered long sections of the mineralized zone, however, this orientation was difficult to maintain and technical limitations terminated the holes before reaching the limits of the deposit. These two holes therefore bottomed in strong mineralization. Hole K-14-40 was drilled perpendicular to the zone. These tests confirm that the Deep Kerr zone plunges west-northwest and continues to at least 1350 meters below surface.
South Extension
In 2013, the south limit of the Deep Kerr deposit was provisionally established at the southernmost drill hole (K-13-26) in the zone at that time. As the 2014 program progressed, it became clear the southern boundary was arbitrary. Two drill holes were completed to confirm a southern extension, one hole (K-14-42) at the southern limit of the 2013 resource model and one hole (K-14-46) 550 meters beyond the 2013 model. These holes confirm significant strike potential but additional drilling is required to extend the resource model and establish the grade distribution.
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