Issue link: http://resourceworld.uberflip.com/i/99312
MINI NG Seabridge Gold makes new copper-gold discovery by Ellsworth Dickson Seabridge Gold Inc. [SEA-TSX; SA-NYSE] has been both a successful explorer and a stock market success. Now the company can chalk up another success – a new copper-gold discovery below their 100%-owned advanced-stage KSM deposit 65 km northwest of Stewart, northwest British Columbia. The KSM (Kerr-Sulphurets-Mitchell) Project is only 20 km southeast of the ultrarich Eskay Creek deposit, now mined out. Recent drilling at KSM discovered the new gold-copper deposit, named Deep Kerr, that 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 favourably located for cost-effective exploitation. Seabridge management is of the view that Deep Kerr is an important discovery, which could significantly improve KSM's already robust estimated economics. It will be further drilled in 2013 using funds from a recent $24 million bought-deal, flowthrough financing. An updated preliminary feasibility study (PFS) released in May 2012 reported reserves of 38.2 million ounces of gold, 9.9 billion pounds of copper, 191 million ounces of silver and 213 million pounds of molybdenum. The PFS includes engineering changes designed to increase the production rate, facilitate permitting and enhance economics. NPVs, IRRs and capital paybacks substantially improved over the 2011 PFS. Base case life of mine cash operating costs fell significantly to $141/oz of gold produced. Seabridge's exploration objective was to seek higher-temperature core zones that typically concentrate high-grade metals within very large porphyry systems such as KSM. Evidence 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. In mid October, Seabridge reported assay results from eight holes drilled on the Walsh Lake target at its 100%-owned Courageous Lake Project in Canada's Northwest Territories that substantially increased the size of this high-grade discovery. The Walsh Lake high-grade zone now has a strike length of nearly 900 metres and remains open to the north, up dip and at depth. Hole CL-230 intersected multiple gold zones, including 9.50 grams/tonne over 9.2 metres and 28.58 g/t over 1.3 metres. Proven and probable reserves at Courageous Lake total 6,460,000 ounces of gold. n Hole ID Total Gold CopperSilver depth (m) From (m) To (m) Thickness (m) grade (g/t) grade% grade (g/t) K-12-201011.0 incl. incl. incl. incl. K-12-21 855.3 66 www.resourceworld.com 559.9 1011.0 615.0 711.4 778.0 883.0 829.0 852.0 979.5 1011.0 20.0 493.0 503.0 519.0 537.0 553.3 672.0 738.0 767.0 781.0 451.5 96.4 05.0 23.0 31.5 473.0 16.0 16.3 66.0 14.0 0.27 0.40 0.41 0.90 0.16 0.31 2.20 6.90 0.38 1.80 0.45 2.0 0.63 3.8 0.60 1.7 1.173.5 0.39 1.5 0.90 3.7 0.0415.0 0.0318.3 0.37 4.1 0.15 10.3 BC Exploration continued from page 28 taken at its 100%-controlled Waterloo property, 65 km east of Kelowna, near the historic Lightning Peak silver and gold mining camp. The 2012 pre-drilling exploration program was focused near the historic Waterloo Mine and consisted of geological mapping, prospecting, geophysical surveys, and confirmation soil geochemistry. Assays ranged up to 3,095 g/t silver and 45 g/t gold. Troymet Exploration Corp. [TYE-TSXV] has completed the fall drilling program on its 100%-owned Key gold project, 125 km southwest of Vanderhoof, northern BC. The prospect is adjacent to New Gold's Blackwater Project. A total of 867 metres of reverse-circulation drilling (RC) were completed in 16 holes. Drilling tested gold-in-soil anomalies plus or minus coincident induced polarization anomalies in the Buzz (10 holes), SGN (two holes), P1A (two holes) and Blue (two holes) target areas. Assays are pending. Westhaven Ventures Inc. [WHN-TSXV] has completed drilling on its 16,421-hectare Shovelnose gold property 30 km south of Merritt. The property is a gold-silver epithermalstyle exploration target that covers prospective stratigraphy in the southern Spences Bridge gold belt. Drilling comprised five holes totaling 778 metres of diamond drilling. The Tower Creek valley, a prominent structural feature located between the Tower and Mik zones, was identified as a priority target for further evaluation. The drill program further evaluated this area, as well as targets within the property that have been identified based on gold and associated pathfinder element soil values. Yellowhead Mining Inc. [YMI-TSXV] has a 100% interest in the Harper Creek copper-goldsilver development project in south-central BC, approximately 150 km by highway north of Kamloops. Harper Creek is one of the largest copper development projects in Canada. A detailed feasibility study was completed in March 2012 that envisioned an estimated production over life-of-mine of 3.63 billion lbs copper, 372,000 oz gold and 14 million oz silver in concentrate. Mine life would be 28 years at a milling rate of 70,000 tpd. Total proven and probable reserves are 704.4 Mt at 0.262% copper, 0.029 g/t gold and 1.14 g/t silver at a 0.14% copper cut-off. There is adjacent rail, road, power and town infrastructure. n DECEMBER 2012/JANUARY 2013