Seabridge Discovers High Grade Gold Occurrence at Courageous Lake
Drilling Finds Likely Extension of Former Tundra Mine at Walsh Lake Target
TORONTO, CANADA, Sep 10, 2012 (MARKETWIRE via COMTEX) -- Seabridge Gold CA:SEA +3.38% SA +3.83% reported today that this summer's exploration drilling on its 100%---owned Courageous Lake Project in Canada's Northwest Territories has discovered a promising high grade gold occurrence at Walsh Lake. The discovery appears to be the southern extension of the historical Tundra Gold Mine, a high grade gold producer which was abandoned in 1999. The Walsh Lake target area, which stretches about one and a half kilometers south from the former mine, is about 10 kilometers south of the FAT deposit where Seabridge has developed a 6.5 million ounce proven and probable gold reserve (see reserve table below).
Walsh Lake drilling started about 1.4 kilometers south of the Tundra Mine and moved towards the north at 200 meter spacings, targeting a stratigraphic contact traced by geophysical surveys. Four of the holes appear to have been located too far to the south. Grades improved as the drilling progressed north towards the former producer. The most northern hole drilled, CL-210, returned three excellent intercepts including 21.2 meters averaging 8.16 grams per tonne of gold ("g/T Au"), 5.6 meters grading 5.93 g/T Au and a further 4.9 meters of 10.49 g/T Au. The 21.2 meter intercept included within it two intercepts grading above one ounce of gold per tonne, the grade that was reportedly exploited in the Tundra Mine. Assay results from five holes totaling 2,028 meters and covering 800 meters of strike have been received to date (see assay table and map below).
Seabridge Gold CEO Rudi Fronk noted that the this year's key objective at Courageous Lake was to find a sizeable new deposit to extend mine life after having completed a Preliminary Feasibility Study on the FAT deposit this past July. "These results indicate that Walsh Lake has the potential to enable us to meet our objective. The grades and widths are very promising and we have about a kilometer of historically untested strike to explore before we reach the old mine workings. While we are still at an early stage of discovery, we have been working in the area for more than 10 years and we have accumulated a great deal of information about its geology and past production, both of which strengthen our confidence that Walsh Lake can make an important economic contribution to our Courageous Lake Project. We are in the process of drilling another 17 to 20 holes this year with the aim of being able to report a preliminary resource estimate, if all goes well."
Assay results from the first five holes drilled this year at Walsh Lake are as follows:
The Walsh Lake area has undergone several generations of exploration, including some past drilling campaigns that intersected narrow and discontinuous gold occurrences south of Seabridge's discovery. Seabridge recently completed airborne magnetic and electromagnetic surveys that showed that these gold occurrences were located on a stratigraphic contact with significant strike potential. Drilling on this contact consistently encounters silica alteration with gold-bearing intervals up to 20 meters above the contact in a siltstone package and up to 60 meters below the contact in mixed felsic and mafic volcanic rocks. Gold is concentrated in arsenopyrite-bearing silica-altered rocks. Drill holes contain multiple intervals of the arsenopyrite-bearing silica-altered rocks in zones with true widths from one meter to 12 meters wide. The characteristics of this target are similar to descriptions of the high grade ore zones in the Tundra Gold Mine.