 |
Guiding
Principles |
• |
Remain Fully Exposed
to the gold price - no hedging, no large cash
positions |
• |
Maximize Gold Ownership
while minimizing equity dilution |
• |
Do Not Operate Mines
- the extra returns do not justify the extra costs
and risks |
• |
North America Only
- the risks are lower and more measureable |
• |
Do What the Market
Values - A 3-step strategy based on gold price |
|
A
3-Step Strategy |
• |
First Step
Acquire non-producing uneconomic gold resources |
• |
Second Step
Upgrade gold resources towards economic status
and acquire exploration assets |
• |
Third Step
Realize gold flows from projects by attracting
producers as partners, continue to upgrade projects
and explore |
|
First Step: Acquire Resources |
• |
In late 1999 Seabridge
began acquiring non-producing gold resources in
North America when no one else wanted them |
• |
Acquisition strategy
was to find North American projects with:
(i) Low up-front costs (less than
US$1.00/ounce);
(ii) Low holding costs (less than
US$0.10/ounce per year);
(iii) Significant up-side exploration
potential |
|
Results
to Date |
• |
9 projects purchased
(100% ownership) |
• |
Projects now host 27.8 million ounces of gold and 5.3 billion
pounds of copper in the measured and indicated resource category plus an additional 22.1 million ounces of
gold and 2.8 billion pounds of copper in the inferred resource category |
• |
Each project has
significant exploration up-side for value enhancement
in a rising gold market |
• |
Holding costs average
about US$0.08/ounce per year |
• |
Total spent by previous
owners on 9 projects > US$325 million |
|
Second Step: Develop Resources |
• |
Advance best resource
projects towards production |
• |
Joint Venture higher
risk projects |
• |
Acquire early stage
exploration plays |
• |
Conduct exploration
on selected targets |
• |
Continue to search
for accretive acquisitions
|
|
Results
to Date |
• |
New Preliminary Assessment at Courageous Lake increased
mine life and improved economics |
• |
Preliminary Assessment in progress at KSM and permitting
process initiated |
• |
Significant increases in resources at KSM, Courageous Lake and
Noche Buena. Discovery and development of Mitchell zone, one of the world's largest
gold-copper systems |
• |
Inferred resources at KSM upgraded to measured and indicated, moving
them towards feasibility quality |
• |
Pacific Intermountain Gold subsidiary formed to stake early stage
exploration plays in Nevada (50,000 acres acquired) |
|
Third Step: Partner and Produce |
• |
Advance best projects
into production with experienced partners in exchange for shares and gold flow |
• |
Continue exploration on selected projects |
• |
Sell lower “IRR” and smaller projects |
|
Results
to Date |
• |
Sales process initiated for several smaller projects |
• |
Major exploration programs continuing at KSM in 2008 |
• |
Engineering and permitting work in progress to bring major
projects to the point of partnering or sale |
|
What
Drives Future Values? |
• |
Courageous Lake.
Engineering studies were completed in the first quarter
of 2008 which updated capital and operating costs based upon a new mine design
and other improvements. Economic parameters for the project were enhanced, particularly
mine life. |
• |
Kerr-Sulphurets.
The primary focus on this project is to expand the newly discovered Mitchell gold-copper deposit
and upgrade the existing resource from inferred to indicated. Metallurgical studies are also in
progress on the Mitchell deposit. A Preliminary Assessment of the
Mitchell deposit has been undertaken to define its economic potential. These steps will help shareholders
assign a value to the KSM project which has become the most important asset of Seabidge. |
