TORONTO, CANADA--(Marketwired - Aug. 20, 2013) -Seabridge Gold Inc. (TSX:SEA)(NYSE:SA) today announced that results from the first three holes testing for a high-grade core zone below the Iron Cap deposit on its 100%-owned KSM project have found strong evidence to support the potential for a major discovery. Further drilling on this target is planned for next month. On August 12, 2013, Seabridge announced that it had discovered, and is now intensively drilling, a large core zone below the Kerr deposit, named the Deep Kerr. Drilling at Deep Kerr to date has generated wide intercepts containing approximately twice the per tonne metal value of KSM's proven and probable reserve.
The KSM Project, located in north western British Columbia, Canada, contains one of the largest undeveloped gold and copper reserves in the world. Its composite intrusive complex hosts four large gold-copper porphyry deposits, including Iron Cap and Kerr, with direct genetic links to epithermal vein deposits including those owned by neighboring Pretium Resources. Iron Cap had been explored since 1991 by previous owners, focusing on surface mineralization and shallow drilling. They concluded that Iron Cap was the expression of a small epithermal vein system. Ongoing exploration since 2010 by Seabridge has determined that the epithermal system was superimposed on the upper portion of a much larger gold-copper porphyry deposit which was potentially intact down to its magmatic core. For the past three years, Seabridge has focused its Iron Cap work on the porphyry deposit in order to prove up reserves. This year, the focus is on the potentially much richer magmatic core zone which could lie below.
Seabridge Chairman and CEO Rudi Fronk commented that "we are very encouraged at the prospect of finding another high-grade core zone at KSM, especially one located under Iron Cap. Our KSM mine plan already calls for Iron Cap to be exploited from underground using cost-effective block caving technology. A core zone beneath the known deposit could simply follow this plan but with potentially much higher grades and efficiencies. The 200 plus meter intercept encountered in Hole IC-13-49 sits entirely below Iron Cap's existing reserves and is more than twice Iron Cap's gold and copper grades. Furthermore, the Iron Cap is located in the same valley as the proposed crusher, tunnel portal and other key infrastructure so there really is no better place for nature to put a core zone, if we can in fact find one there. The balance of this year's program will focus on in-fill drilling at Deep Kerr plus additional drill tests at Iron Cap."
Assay results from this year's initial core drilling at Iron Cap are as follows:
| Drill Hole ID |
Total Depth |
From
(meters) |
To
(meters) |
Interval
(meters) |
Gold
(g/T) |
Copper
% |
Silver
(g/T) |
| IC-13-048 |
1011.3 |
346.5 |
839.8 |
493.3 |
0.30 |
0.30 |
3.2 |
|
including |
346.5 |
425.4 |
78.9 |
0.72 |
0.37 |
5.4 |
| IC-13-049 |
1035.4 |
9.0 |
1032.4 |
1023.4 |
0.77 |
0.24 |
5.15 |
|
including |
485.2 |
692.4 |
207.2 |
1.22 |
0.45 |
4.5 |
| IC-13-50 |
431.5 |
286.0 |
321.0 |
35.0 |
1.38 |
0.38 |
9.7 |
The reported assays are from holes designed to optimize penetration of the projection of the target down plunge from the existing porphyry deposit. Additional drilling is required to establish true width. For a drill location map and cross sections, see www.seabridgegold.net/ICmap.pdf.
Drill Holes IC-13-48 and 49 were designed to test the core zone down plunge of the Iron Cap deposit. In Hole 48, volcanic, and intrusive rocks were encountered to about 250 meters with grade distributions typical of the resource model for the Iron Cap deposit. Below this material, a chaotic brecciated interval was encountered containing clasts from, and a matrix of, intrusive rocks with secondary orthoclase and abundant copper minerals. Grades of both copper and gold improved through this breccia but were terminated at a post-mineral dike and the hole did not get through the intrusion.
IC-13-49 also confirmed the existing resource model at Iron Cap down to 200 meters. Below that point, the hole entered volcanic rocks with variable intensity of veining and alteration. A discrete interval over 200 meters wide was encountered containing orthoclase and magnetite alteration with many characteristics of a core zone. An unaltered dike was intersected in the bottom of the drill hole.
IC-13-50 was drilled to test the thickness and character of a massive magnetite-pyrite-chalcopyrite interval encountered in IC-10-44 three years ago. IC-10-44 had intersected 3.0 g/T Au and 0.37% Cu over 13 meters which was believed to represent a skarn body on the margin of an intrusion. IC-13-50 demonstrated that this feature is a vein with a width of 35 meters sourced from an iron-copper-gold-rich hydrothermal fluid consistent with the core zone of a porphyry system.
The evidence strongly suggests that the Iron Cap deposit sits above a high-grade core zone. Results from these drill holes are interpreted to represent the margins of our target core zone. In order to refine our targeting, bore-hole geophysical surveys and three-dimensional models have been completed. This information will be used to locate the next series of drill tests scheduled for later this season.
.
Exploration activities at KSM are being conducted by Seabridge personnel under the supervision of William E. Threlkeld, Senior Vice President of Seabridge and a Qualified Person as defined by National Instrument 43-101. Mr. Threlkeld has reviewed and approved this news release. An ongoing and rigorous quality control/quality assurance protocol is being employed during the 2013 program including blank and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10% of the samples. Samples are being assayed using fire assay atomic adsorption methods for gold, total digestion ICP methods for other elements, and atomic adsorption methods for Cu, Ag, Mo, Pb, Zn and As on samples with >0.5% Cu, by ALS Minerals Canada Ltd. in North Vancouver, B.C.
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Seabridge holds a 100% interest in several North American gold resource projects. The Company's principal assets are the KSM property located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada's Northwest Territories.