TORONTO, CANADA -- (Marketwired) -- 05/22/13 -- Seabridge Gold (TSX: SEA)(NYSE: SA) reported today that exploration drilling has begun at its KSM project in Northwestern British Columbia, Canada. Four highly prospective targets are likely to be tested this summer for their potential to host large deposits with grades at multiples of the project's currently reported reserves.
The KSM Project contains one of the largest undeveloped gold and copper reserves in the world. Its composite intrusive complex hosts four large gold-copper porphyry deposits with direct genetic links to epithermal vein deposits including the neighboring Brucejack/Valley of the Kings occurrences owned by Pretium Resources. Three of this year's targets are "core zone" deposits. In mining districts similar to KSM in size, with multiple magma sources and comparable genetic/deformational histories such as Oyu Tolgoi, Pebble, Resolution, and Grasberg, major new discoveries have been made late in the exploration history, often below shallow porphyry deposits and/or beneath faults. The fourth target for this year is a potentially fully preserved down thrown block of epithermal-style gold and silver occurrence similar to Brucejack/Valley of the Kings. (see http://seabridgegold.net/pdf/NMay22'13-map.pdf).
Chairman and CEO Rudi Fronk noted that "our team has never been more excited to begin an exploration program. The insights for these targets have emerged over several years but they have been deferred while we drilled off the known deposits in order to establish reserves and proceed with permitting. We are finally getting back to the kind of exploration which has the potential to add significant shareholder value, even under the current poor market conditions."
The four targets in the 2013 program are:
Drilling below the Kerr deposit in 2012 confirmed the existence of higher grade core-zone-style mineralization (the Deep Kerr discovery) and demonstrated strong potential for finding substantial tonnages of material exceeding the current Kerr reserve grades (see news release of 08/11/12). Holes K-12-20 and K-12-21 intercepted multiple zones with much higher concentrations of gold and copper than the Kerr deposit average. Key observations of the Deep Kerr discovery are: strengthening intensity of alteration with depth; an increasing chalcopyrite-to-pyrite ratio; and gold and copper values increasing in tandem. The Deep Kerr opportunity is enhanced by its accessibility from the Sulphurets valley floor by way of an inclined tunnel, raising the potential for a lower cost block caving option which would also have significant environmental benefits.
The exploration of Deep Kerr will require long drill holes. To obtain maximum return on expenditures, tools including borehole geophysics, wedging, and directional steering will be employed in each hole. The first phase of exploration at Deep Kerr in 2013 will include drilling multiple intersections 300 to 400 meters down dip of the current resource at approximately 500 meters spacing. Once confirmation of the structure, alteration, and metal zoning geometries is in hand, optimization of higher density drilling required for resource definition will begin. The goal is to ensure that resource delineation drilling is focused on the area with potential for the most continuous and highest grades within the very large down dip projection of the Kerr Zone.
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