Providing coverage of Alaska and Northwest Canada's mineral industry
November 2015

Vol. 20, No. 45 Week of November 08, 2015

Mining News: Northern Neighbors: Drilling supports Deep Kerr block-cave mining

Seabridge Gold Inc. Nov. 3 reported results from the final two of five holes drilled this year at the Deep Kerr deposit of its KSM copper-gold project in northwestern British Columbia. These holes, which were wedged off K-15-49 and K-15-50 into new intercepts of the target zone, are shallower intersections of the high-grade west limb of Deep Kerr and confirm the continuity of that zone between the existing resource and deeper intersections in holes drilled earlier this year. K-15-49B, which was designed to penetrate the zone about 200 meters north of K-15-49 and roughly 200 meters above that hole, cut 56.6 meters of 0.67 grams per metric ton gold and 0.12 percent copper from 963.5 meters; 82.6 meters of 0.43 g/t gold and 0.55 percent copper from 1,379 meters; and 134.4 meters of 0.2 g/t gold and 0.45 percent copper from 1,534.5 meters. K-15-50A, which was drilled on the same section as K-15-50 and encountered the target zone about 250 meters higher than the earlier hole, cut 123 meters of 0.44 g/t gold and 0.3 percent copper from 1,246.5 meters; and 252 meters of 0.38 g/t gold and 0.31 percent copper from 1,452.5 meters. The five drill holes completed into the west part of the Deep Kerr deposit this year were designed to establish dip continuity of the high-grade west limb of Deep Kerr. Results show that the mineralized envelope of the west limb extends more than 450 meters along strike. Down dip, the zone shows continuity of more than 400 meters with grades and widths improving at depth. The shape of this zone continues to be highly favorable to underground bulk mining as it grows in size. The zone remains open along strike and at depth and future drill tests are expected to extend it further. However, the current focus is to better understand the evident improvement of grade at depth so as to direct future drilling into the highest grade material. Seabridge Chairman and CEO Rudi Fronk said, “This year, we achieved our aim of increasing the size and confirming the continuity of mineralization at our proposed block cave operation at Deep Kerr. We are confident that the results will substantially increase resources. At the same time, we also learned that grade increases at depth, especially for gold, and that we still have not found the limits of the deposit. We are also becoming more intrigued with the high-grade potential of the less-explored east limb.”

On Oct. 30, Seabridge Gold reported that two of its largest shareholders purchased 1.8 million common shares of the company at C$8.10 per share for gross proceeds of C$14.58 million. Funds from this non-brokered private placement will be used for general working capital requirements. “The proceeds from this financing are sufficient to cover Seabridge’s ongoing property holding costs and corporate G&A into 2017,” explained Fronk. “Our plan is to fund exploration separately through flow-through offerings at a premium to market, if and when our board determines that further programs are warranted.”

- Shane Lasley

Mining News North - Phone: 1-907 522-9469 - Fax: 1-907 522-9583
[email protected] --- http://www.miningnewsnorth.com ---

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