Seabridge Confirms Continuity of High-Grade Walsh Lake Gold Discovery
Results Include 11.3 Meters of 26.2 GPT Gold and 1 Meter of 117.8 GPT Gold
Seabridge Gold reported today that results from the final 10 holes drilled during the 2012 campaign on the Walsh Lake target at its 100%-owned Courageous Lake Project in Canada's Northwest Territories confirm the strike continuity of this high-grade gold discovery. The Walsh Lake zone now has a strike length of 850 meters and remains open to the north, up dip and at depth. An aggressive drilling program will begin this winter which is expected to result in an initial resource estimation later in 2013.
The Walsh Lake discovery was announced on September 10, 2012. This area is about 10 kilometres south of the FAT deposit where Seabridge has developed a 6.5 million ounce proven and probable gold reserve (see reserve table below). The north part of this target area is connected by a road network between the FAT deposit and the historical Tundra Gold Mine. Walsh Lake is believed to be a series of structural zones, parts of which are on strike with the deposits exploited in the Tundra Gold Mine.
Seabridge Chairman and CEO Rudi Fronk noted that the Walsh Lake results could be economically significant to the overall project. "Courageous Lake is an exciting asset, not only because of the large FAT deposit but also because we own 53 kilometres of a Greenstone Belt which has gold mineralization over its entire length. Investing in our extensive land package in the belt is just beginning to pay off. Our team has developed other targets that we expect will also augment existing reserves".
With the increase in mining costs, I wonder whether it would be a possibility to check for an underground high grade operation. Noranda found an underground resource of 5.8 million ounces at 6.2 grams in the eighties.
I know Seabridge has always been committed to large open pit operations, but hey, maybe a smaller operation would be more profitable and easier to bring into production.
Thats the million dollar question. There is enough material to run a big mine for quite a long time, the effort is now to feed the mine with the best possible stuff in the first years, to accelerate payback and improve economics. Right now, I don't think Walsh Lake is big enough, but there seems to be a lot of historic drilling as well, so maybe there will be a surprise. We'll see, there is an entire 53 km greenstone belt that has never been explored with modern equipement.
At CL, direct mining costs nearly doubled from 10 to 20 bucks per ton if I quote correct from my memory. Thats tough. So an improvement could be of higher grade or lower strip.
2 years mine feed would be in the range of 12 million tons, thats something like 100 meters times 100 meters and a strikelength of 450 meters
Same with KSM, looking for higher grade material could be the gamechanger after the dissapointing economics in this years upgrade.