Walsh Lake Discovery Delivers More High-Grade Gold
TORONTO, CANADA, Oct 16, 2012 (MARKETWIRE via COMTEX) -- Seabridge Gold CA:SEA -0.11% SA -0.11% reported today that assay results from the next eight holes drilled on the Walsh Lake target at its 100%-owned Courageous Lake Project in Canada's Northwest Territories have substantially increased the size of this high-grade discovery. The Walsh Lake high grade zone now has a strike length of nearly 900 meters and remains open to the north, up dip and at depth. Results from another 10 holes drilled in this year's program are expected over the next several weeks.
The Walsh Lake discovery was announced on September 10, 2012 (see news release). The deposit appears to be the southern extension of the historical Tundra Gold Mine, a high-grade gold producer which was abandoned in 1999 as the gold price fell to a 25 year low. The Walsh Lake target area, which stretches 1.5 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).
Seabridge Chairman and CEO Rudi Fronk said that with these latest results, the Walsh Lake discovery is now taking on potential economic significance. "Our aim this year was to add mine life at Courageous Lake to improve capital efficiency, in effect offsetting the higher capital costs of our remote location by amortizing them over a longer project life. The Walsh Lake discovery certainly has that potential and, what is more, it could also enhance grade in the critical early years of production, thereby reducing the payback period. Walsh Lake material could be trucked to the FAT facility using the existing road network."
I think this is very good news.
The average grade of the reported intercepts of the two news releases is above 6 grams and well above the FAT deposits grade.
The 12 holes with mineralised intercepts have an average 125 grammeters, drill holes with more than 100 grammeters are considered to be a significant discovery.