Seabridge Gold (TSX: SEA; NYSE: SA) has updated the resource estimate for the Kerr and Iron Cap deposits at its 100%-owned KSM gold-copper project in northwestern British Columbia. An extra 5.9 million oz. of gold, 3.3 billion pound of copper, 55.4 million oz. of silver, and 51 million lb. of molybdenum were added in the inferred category.
The indicated resources increased by 300,000 oz. of gold, 200 million lb. of copper, 3.5 million silver, and 2 million lb. of molybdenum.
The estimate used the same metals prices as the 2022 Mitchell and East Mitchell open pit estimates (US$1,820/oz. gold, US$4.20/lb. copper, US$28/oz. silver, and US$13.5/lb. moly at a currency exchanges rate of US$0.83:C$1.00.)
The Kerr and Iron Cap deposits will primarily be underground mines with block caving, although there is a portion of the Kerr deposit that can be mined by open pit methods.
The indicated resource at Kerr is 384.2 million tonnes grading 0.22 g/t gold, 0.41% copper, 1.2 g/t silver, and 5 ppm molybdenum. The inferred resource is 2.59 billion tonnes at 0.27 g/t gold, 0.35% copper, 1.7 g/t silver, and 21 ppm molybdenum.
The Iron Cap deposit contains 471 million indicated tonnes at 0.38 g/t gold, 0.21% copper, 4.3 g/t silver, and 39 ppm molybdenum. The inferred portion is 2.31 billion tonnes at 0.41 g/t gold, 0.27% copper, 2.5 g/t silver, and 31 ppm molybdenum.
Seabridge chair and CEO Rudi Fronk said the resource restatements reflect gains from a consistent application of metal price parameters. The company is seeking a joint venture partner for KSM, so it believes it makes sense to normalize the estimates across all deposits.
The company further noted that the increased mineral resources compared to the previous estimate would only be mined after the 33 years of mine life based on the open pit reserves. Any future cash flows resulting from these additional mineral resources is not considered material.
In the Mithell, East Mitchell and Sulphurets deposits, the proven and probable reserves are 2.29 billion tonnes grading 0.64 g/t gold, 0.14% copper, 2.2 g/t silver, and 76 ppm molybdenum. The contained metal within the reserves is 47.3 million oz. of gold, 7.32 billion lb. of copper, 160 million oz. of silver, and 385 million lb. of molybdenum.
Additional details are posted on www.SeabridgeGold.com and www.KSMproject.com.
