Mining News: Northern Neighbors: Seabridge raises C$12.04 million for KSM, Iskut

Seabridge Gold Inc. May 19 reported the closing of a C$12.04 million financing that involved the issuance of 500,000 flow-through shares at C$24.08 each. The company will use the money raised to fund the 2016 exploration programs at its KSM copper-gold project and, subject to completion of Seabridge’s acquisition of SnipGold Corp., the Iskut gold-copper project in northwestern British Columbia. At KSM, Seabridge plans to complete 10,000 meters of drilling designed to expand the block cave shapes that confine the current resource estimate at Deep Kerr by as much as 800 meters. “Our geological team believes the mineralized zone on the west limb of the deposit projects to the south and that the block cave shapes in our resource are limited by drill data, not geology. Extending the footprint of these block cave shapes should enable us to increase the potential mining rate for Deep Kerr higher grade material, which could result in improved economics for the project,” explained Seabridge Chairman and CEO Rudi Fronk. In addition, drilling will target the less-explored eastern limb of the Deep Kerr deposit to test its potential expansion at depth. Exploration drilling in 2015 expanded the inferred resource at Deep Kerr to 1.01 billion metric tons grading 0.53 percent (11.8 billion pounds) copper and 0.35 grams per metric ton (11.3 million ounces) gold. “We also expect to complete our first drill program on the Iskut property this summer assuming we close our proposed acquisition of SnipGold,” Fronk added. “At Iskut, our primary target is discovery of high-grade gold similar to what was mined historically.”

- Shane Lasley