Mining News: Northern Neighbors: Seabridge swells Deep Kerr at KSM

Seabridge Gold March 23 reported significant growth of the mineral resource for the Deep Kerr copper-gold deposit at its KSM Project in northwestern British Columbia. Based on roughly 50,000 meters of drilling in 45 holes drilled since 2012, Deep Kerr has an inferred resource of 782 million metric tons grading 0.54 percent (9.3 billion pounds) copper and 0.33 grams per metric tons (8.2 million ounces) gold. Deep Kerr was treated as a block cave (bulk underground) mining target and a net smelter return cutoff value of $20 was used to calculate the resource. Seabridge said the lateral and vertical continuity of the zone provides a geometric configuration that is likely to be amenable to block cave mining. The company has retained Golder Associates, a leading industry expert in underground mining, to undertake bulk underground mining studies for Deep Kerr. Seabridge Chairman and CEO Rudi Fronk said the company has “every confidence that Deep Kerr represents an outstanding opportunity for a large, high-margin operation attractive to major base metal miners and gold producers.” Seabridge says the limits of Deep Kerr have yet to be identified, and the company plans to continue exploration at KSM this year using the proceeds of a C$14.2 million bought-deal flow-through equity financing announced earlier this month. The company expects to report an inaugural resource estimate for the new Iron Cap Lower zone shortly.

- Shane Lasley