Larger Iron Cap Mine Dramatically Boosts Economicshttps://seabridgegold.net/News/Article/805/updated-pea-study-enhances-seabridge-gold%27s-ksm-project-a-larger-iron-cap-mine-improves-production-and-dramatically-boosts-economics Seabridge Gold announced today that an updated Preliminary Economic Assessment (the "2020 PEA") for its 100%-owned KSM project has confirmed the potential for a dramatic improvement in project economics by incorporating the recently expanded, higher grade Iron Cap deposit into mine plans. This alternate scenario does not impact the current Preliminary Feasibility Study (the "2016 PFS") which remains in effect and will be included with the 2020 PEA in an updated NI 43-101 Technical Report to be filed on SEDAR within 45 days.
KSM is located in mining friendly British Columbia, Canada near existing and past producers as well as valuable transportation and energy infrastructure. KSM is the world's largest undeveloped gold/copper project measured by Mineral Reserves, which do not include a sizeable Inferred Mineral Resource at the project's four deposits. The project has both Federal and Provincial Environmental Assessment (EA) certificates and the Company is maintaining a strong social license, having signed Impact Benefit Agreements with the Nisga'a and Tahltan First Nations, an environmental agreement with the Gitanyow Nation and receiving letters of support from the Gitxsan Nation.
Chairman and CEO Rudi Fronk noted that the 2020 PEA was undertaken to assess an alternate approach to developing KSM by incorporating a much larger Iron Cap block cave mine into the production schedule accompanied by smaller open pits compared to prior studies and developing this opportunity much earlier in the project's mine life. "The benefits of incorporating Iron Cap into mine plans at an early stage have exceeded the upper end of our expectations, not only for the improvements in projected economics but also for the reduction in environmental impact. The PEA is based on Iron Cap's inferred resource estimate but we are very confident these resources will upgrade to higher categories with further drilling as they have in the past at the project's other deposits. We therefore think the new Technical Report gives investors a compelling view of the project's potential," Fronk said.