Mining News: News Nuggets: Seabridge trims 2015 exploration program

Seabridge Gold Inc. July 28 said initial results from the 2015 core drilling program at its KSM project in northwestern British Columbia points towards a sizeable expansion of the Mitchell deposit at depth, but further evaluation is needed prior to additional drilling. M-15-130, the first hole of the program, cut 174 meters of 0.55 grams per metric ton gold and 0.28 percent copper and M-15-131, drilled more than 200 meters to the northeast, cut 167 meters of 0.81 g/t gold and 0.25 percent copper. Seabridge said these results appear to represent a large, continuous zone amenable to block cave mining. Over the past two years, Seabridge has successfully targeted higher grade zones beneath KSM’s near-surface porphyry deposits, resulting in the discovery of Deep Kerr and the Iron Cap Lower Zone, two copper-rich deposits that have added nearly one billion metric tons of better grade to project resources. The program this year has continued this multi-year exploration effort to add higher grade zones by testing the down-plunge extension of the Mitchell deposit. The company, however, says further evaluation needs to be done before further pursuit of this target is undertaken. “The size and grade of the planned Mitchell block cave are likely to be enhanced by this data. Also, the mineralogy and textures from drill core suggest that we are approaching a zone of higher-temperature and fluid flow that may offer even better grades, but there is evidence of faulting that needs to be analyzed before we undertake further drilling on this target,” explained Seabridge Chairman and CEO Rudi Fronk. “Although we are excited about where this discovery could lead, we have decided to scale back this year’s Mitchell program by about C$2.2 million until we have completed our analysis of all the available data. The balance of the program will concentrate on expanding the block cave shapes associated with the Deep Kerr deposit.”

- Shane Lasley