Seabridge Gold Encouraged by Core Drilling Results from KSM Project

Seabridge Gold Inc. (TSX:SEA,NYSE:SA) announced initial results from 2015 core drilling at its British Columbia-based KSM project. They point to “a sizeable expansion of the Mitchell Deposit at depth.”
As quoted in the press release:

The size and orientation of the drill intercepts support the potential for an expansion of the cost-effective block cave operation planned for the reserves above these new intercepts. Hole M-15-130’s 174 meters of 0.55 g/T gold and 0.28% copper is more than 200 meters to the southwest of M-15-131’s 167 meters of 0.81 g/T gold and 0.25% copper; these results appear to represent a large, continuous zone amenable to block cave mining.

Rudi Fronk, chairman of Seabridge, commented:

[T]hese initial results from Mitchell are very encouraging. 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 which needs to be analyzed before we undertake further drilling on this target. Although we are excited about where this discovery could lead, we have decided to scale back this year’s Mitchell program by about $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.
The first two holes in this year’s program also encountered a copper zone higher up in the section which could convert waste to ore in Mitchell open pit scenarios which are planned to precede underground block caving. The holes were started well above and outside of the Mitchell Deposit reserve in order to test the deep projection of the central zone. Significant widths of copper mineralization were intersected above the Mitchell Thrust Fault in magnetite-rich intrusive and sedimentary rocks near the contact of an intrusion with intervals up to 192 meters wide grading 0.34% copper and 0.14 g/T gold.  This style of copper-rich material has been encountered in previous drilling in this vicinity. We will evaluate the potential of incorporating these zones into the Mitchell resource. If we are able to convert in-pit waste to ore, it could have a positive impact on Mitchell economics.

Click here to read the full Seabridge Gold Inc. (TSX:SEA,NYSE:SA) press release.