Mining News: Seabridge to drill a blind KSM discovery

Seabridge Gold June 21 reported that it is set to begin drilling two highly prospective targets at KSM – the down plunge projection of the Lower Iron Cap zone and a new target that could represent a fifth, higher grade deposit at this enormous gold-copper project in northwestern British Columbia. Both targets were discovered in IC-16-62, the last hole drilled in the 2016 drill program. The company plans to complete around 8,750 meters in 10 holes to test these targets. “This is the twelfth successive season we have drilled at KSM and, quite remarkably, we believe it could be one of our most productive,” said Seabridge Chairman and CEO Rudi Fronk. Hole IC-16-62 cut 555.2 meters grading 0.83 grams per metric ton gold, 0.24 percent copper and 4.4 g/t silver beginning at a depth of 353 meters in the Lower Iron Cap zone. This year’s drilling will test for continuity of this mineralization down plunge of the existing resource. If successful, Seabridge said the hole spacing could add several hundred million tons of mineralized material to the Lower Iron Cap resource. IC-16-62 also cut a shallower blind target consisting of an incomplete interval of more than 60.7 meters averaging 1.20 g/t gold, 0.95 percent copper and 4.1 g/t silver, beginning at a depth of 201 meters. This interval could have been considerably wider but no core was recovered from 150 to 173 meters and from 183 to 201 meters while the orientation of the drill hole was being modified using down hole tools. Seabridge notes that the interval between 173 and 183 meters returned 0.53 gt gold and 0.55 percent copper. This target is believed to be the higher grade core zone of a porphyry copper-gold system juxtaposed against the Iron Cap deposit on a fault. The holes targeting the plunge projection of the Lower Iron Cap zone are expected to cross the blind discovery. Seabridge Chairman and CEO Rudi Fronk commented: We have been anxiously awaiting the snowmelt so we can begin,” said Fronk. “We now expect Iron Cap will become considerably larger, much like Deep Kerr over the past three years. We are also keen to see how the new discovery proves up, given its exceptional grades and the possibility that it may extend to the north, west and east. IC-16-62 is one of the few times we have stepped out into an area without a surface expression of mineralization. This blind discovery confirms our belief that KSM still contains significant untapped discovery potential.” –SHANE LASLEY