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Seabridge Gold, Inc. Message Board

  • culibaly culibaly Nov 8, 2012 8:50 AM Flag

    Seabridge Gold Discovers Large, High-Grade Copper Zone at KSM

    Seabridge Gold Discovers Large, High-Grade Copper Zone at KSM
    Drill Hole K-12-21 Intersects 473 Meters Grading 0.90% Copper and 0.31 gpt Gold Kerr Depth Extension May Be 'Game-Changing' Core Zone Targeted in 2012 Drilling

    TORONTO, CANADA, Nov 08, 2012 (MARKETWIRE via COMTEX) -- Seabridge Gold CA:SEA +3.66% SA +2.96% 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.

    Key observations of the Deep Kerr discovery include:

    -- Alteration intensity increases with depth. Favorable potassic alteration
    is present and the chalcopyrite to pyrite ratio increases in the deeper
    parts of Kerr suggesting that we are approaching the temperatures that
    would be associated with a high-grade core.
    -- Gold and copper grades show more complete overlap at depth, increasing
    in tandem, another key indicator of a core zone. At the periphery of the
    Kerr zone, intercepts of gold-only mineralization are thicker than at
    shallower depths, and these have potential to enhance overall gold
    -- The down-dip mineralized zones encountered consist of unusually thick
    sections with some of the highest metal values encountered to date at
    -- The geometry from the existing resource model to these new results down
    dip supports a potential resource expansion in the range of 500 million
    tonnes (see attached plan map and cross section). Kerr now has
    geological continuity down dip of more than 500 meters which is likely
    to grow.
    -- At depth, the Deep Kerr appears to be slightly offset by a post-mineral
    fault which took hole K-12-21 out of the high-grade material but
    Seabridge's geological team believes that the displaced high-grade zone
    continues down dip.
    -- The Kerr depth extension is above, and probably accessible from, the
    Sulphurets valley floor by way of an inclined tunnel, raising the
    potential for a lower cost block caving option which would also have
    significant environmental benefits.

    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."

    The discovery at Kerr is substantiated by the following drill hole intersections:

    Total Gold Copper Silver
    Depth From To Thickness Grade Grade Grade
    Hole ID (meters) (meters) (meters) (meters) (g/T) (%) (g/T)
    K-12-20 1011.0 559.9 1011.0 451.5 0.27 0.45 2.0
    incl. 615.0 711.4 96.4 0.40 0.63 3.8
    incl. 778.0 883.0 105.0 0.41 0.60 1.7
    incl. 829.0 852.0 23.0 0.90 1.17 3.5
    incl. 979.5 1011.0 31.5 0.16 0.39 1.5
    K-12-21 855.3 20.0 493.0 473.0 0.31 0.90 3.7
    503.0 519.0 16.0 2.20 0.04 15.0
    537.0 553.3 16.3 6.90 0.03 18.3
    672.0 738.0 66.0 0.38 0.37 4.1
    767.0 781.0 14.0 1.80 0.15 10.3

    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.

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