The 2013 Deep Kerr discovery reported an inferred resource of 515MT grading 0.53% copper and 0.36 g/T gold which is open on strike and at depth (see release of February 18, 2014). Drilling this season at Deep Kerr was designed to confirm the resource model and test for the limits of the deposit along strike. Results from the first three holes at Deep Kerr have successfully addressed these objectives; a step-out hole to the north has confirmed the north strike extension and deeper drilling on the south indicates potential strike extension in that direction while a third infill hole has returned results validating the resource block model.
Hole K-14-39, located 140 meters north of 2013 drilling, contained broad zones of copper and gold mineralization including a discrete higher grade interval. Hole K-14-40 was drilled on the south end of the deposit within the limits of the 2013 model but deeper than previous intersections. This hole encountered mineralization in a pattern identical to the balance of the deposit, leading to the conclusion that 2013 drilling in this direction was too shallow and therefore did not establish the southern limit of the deposit as previously reported. Hole K-14-28C, a "daughter" hole wedged off a hole completed in 2013, was drilled to confirm the modeled grade distribution in the heart of the Deep Kerr deposit and returned mineralized widths as predicted, at slightly higher copper and gold grades.
Chairman and CEO Rudi Fronk noted that "these results should enable us to grow the Deep Kerr resource which we believe is one of the keys to joint venturing KSM. Drilling continues on the Deep Kerr expansion, as well as on building an initial resource for this year’s discovery at the Iron Cap Lower Zone and testing additional higher grade core zone targets. Approximately 24 holes will be drilled this year. Thus far, results have only been released for five holes. We think the best is yet to come."
All holes were drilled perpendicular to the strike of the Deep Kerr zone and were intended to intersect the true width of the body. We believe these intersections therefore likely approximate true width.
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 on KSM). Its composite intrusive complex hosts four known, large, gold-copper porphyry deposits which are within the upper portion of the system and have demonstrated vertical continuity down to near-magmatic core zones and upward through voluminous mineralized stock works into near surface epithermal vein deposits. This vertical zonation is typical of many of the world’s largest mining districts. Deep Kerr and the Iron Cap Lower Zone are the initial confirmations of the existence of deep core zones beneath the porphyry deposits, as predicted by Seabridge’s model. Core zones are formed under higher temperature and pressure conditions, resulting in a mineralogical character usually associated with significantly higher metal content.
Exploration activities at KSM are being conducted by Seabridge personnel under the supervision of William E. Threlkeld, Senior Vice President of Seabridge and a Qualified Person as defined by National Instrument 43-101. Mr. Threlkeld has reviewed and approved this news release. An ongoing and rigorous quality control/quality assurance protocol is being employed during the 2013 program including blank and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10% of the samples. Samples are being assayed using fire assay atomic adsorption methods for gold and total digestion ICP methods for other elements.
Seabridge holds a 100% interest in several North American gold resource projects. The Company’s principal assets are the KSM property located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada’s Northwest Territories.
