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April 17, 2002
Independent Resource Estimate Expands Quartz Mountain Gold Project
Toronto (Canada) — Seabridge Resources announced
today that an independent resource estimate has been completed on its 100%
owned Quartz Mountain gold project located in Lake County, Oregon resulting
in a measured and indicated gold resource of 1.7 million ounces plus an additional
1.0 million ounces in the inferred category. This new resource estimate conforms
with National Instrument 43-101 for resource disclosure.
"The new independent resource estimate for Quartz Mountain has increased
Seabridge's total gold resources from 7.1 to 8.1 million ounces,
of which 5.6 are in the measured and indicated categories. Our
goal is to acquire additional gold assets, accretive to existing
shareholders, in order to bring our total gold resources above
10.0 million ounces," stated Seabridge President Rudi Fronk.
(see Resource.htm and press release dated April 15, 2002).
During 1987 and 1988 at least six independent resource models were
constructed for Quartz Mountain which did not conform with National
Instrument 43-101. Following the completion of its acquisition of
Quartz Mountain, Seabridge commissioned Winters, Dorsey & Company LLC
("WD&C"), a mine engineering consulting company based in Tucson, Arizona to
construct a new resource model for the project. At a 0.34 gram per tonne cut-off grade,
the WD&C model for Quartz Mountain estimates measured resources of 3.5 million
tonnes grading 0.98 grams of gold per tonne (110,000 ounces) plus an indicated
resource of 54.3 million tonnes grading 0.91 grams of gold per tonne (1,591,000 ounces)
for a total measured and indicated gold resource of 1,701,000 ounces. In the inferred
category, the project contains an additional 44.8 million tonnes grading 0.72 grams
of gold per tonne (1,043,000 ounces). The stated gold resources at Quartz Mountain
are not economic at current gold prices and therefore can not be classified as a
mineral reserve at this time.This new resource estimate is in compliance with National
Instrument 43-101.
The Quartz Mountain project is a volcanic-hosted, hot-spring gold deposit
located in the Basin and Range Province of south-central Oregon. Gold
mineralization occurs extensively within Late Miocene,endogenous, rhyolite
porphyry domes and within the adjacent basaltic flows, tuffs and volcaniclastic
country rocks. Disseminated, micron-size, native gold mineralization at Quartz
Mountain accompanies pervasive silica flooding and quartz veining and is associated
with pyrite, maracasite, and stibnite or their oxidized equivalents. Mineralized
zones measure up to 300 feet in thickness and 3000 feet in diameter on Crone Hill
and up to 100 feet in thickness and 1000 feet in diameter on Quartz Butte. Gold
mineralization at Quartz Mountain occurs with silicification and quartz veining
in (i) hot spring sinters and vent breccias; (ii) stockworks and hydrothermal
breccias within volcanic vents and along intrusive and stratigraphic contacts;
and (iii) stratabound zones of replacement mineralization occupying select lapilli
tuff and basaltic agglomerate horizons. Structural ground preparation along
with primary porosity and permeability are the ore controls evident in all
three cases.
The new resource model for Quartz Mountain incorporates 709 drill holes
totaling 79,876 metres in two distinct mineralized zones: Crone Hill and
Quartz Butte. WD&C was not able to examine drill core or drill cuttings
from previous exploration activities as the material had been discarded.
The assay data provided in the electronic databases were compared by WD&C
to certified assay lab sheets and were found to be accurately entered.
Seabridge was not able to recover sufficient check assay data from the
historical exploration programs in order to fully validate the assay
database by rigorous QA/QC protocols. Given that third-party feasibility
studies were prepared at Quartz Mountain in the late 1980s, WD&C noted
that this type of data probably existed at one time. In conclusion WD&C
determined that the historic exploration data were collected and analyzed
by reputable drilling and analytical firms and was considered sufficient
for mineral resource determination.
From the data, WD&C constructed a series of 0.34 gram per metric tonne
gold grade envelopes on bench elevations for each zone in order to constrain
the estimate of gold resources. Based on a review of the distribution of
gold metal in each zone by a combination of decile analysis and cumulative
probability distribution graphs, WD&C elected to cap individual gold assays
for the Crone Hill and Quartz Butte zones at 11.4 and 34.2 grams per metric
tonne, respectively. For each block, gold grades were then estimated using
ordinary kriging methods. The estimated block grades were classified into
measured, indicated, and inferred categories using the distance to drilling
data as a function of confidence in the grade estimation process. It is the
opinion of WD&C that the gold resources as stated satisfy the requirements
of National Instrument 43-101.
Seabridge has been designed to provide its shareholders maximum leverage to
the price of gold. The Company has entered into agreements covering 13.8 million
ounces of gold resources in North America, of which 8.0 million ounces are
measured and indicated. (See Gold Resources Table
and press release dated April 15, 2002).
The Company continues to seek expansion of its gold
resource base by acquisition of new projects and exploration
programs largely funded by partners.
All resource estimates reported in this
disclosure are calculated in accordance with the Canadian
National Instrument 43-101 and the Canadian Institute
of Mining and Metallurgy Classification system. These
standards differ significantly from the requirements of
the U.S. Securities and Exchange Commission.
Statements relating to the estimated or expected future
production and operating results and costs and financial
condition of Seabridge, planned work at the CompanyÁs
projects and the expected results of such work are forward-looking
statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are statements that are not historical facts
and are generally, but not always, identified by words
such as the following: expects, plans, anticipates, believes,
intends, estimates, projects, assumes, potential and similar
expressions.ň Forward-looking statements also include
reference to events or conditions that will, would, may,
could or should occur.ň Information concerning exploration
results and mineral reserve and resource estimates may
also be deemed to be forward-looking statements, as it
constitutes a prediction of what might be found to be
present when and if a project is actually developed. These
forward-looking statements are necessarily based upon
a number of estimates and assumptions that, while considered
reasonable at the time they are made, are inherently subject
to a variety of risks and uncertainties which could cause
actual events or results to differ materially from those
reflected in the forward-looking statements, including,
without limitation: uncertainties related to raising sufficient
financing to fund the planned work in a timely manner
and on acceptable terms; changes in planned work resulting
from logistical, technical or other factors; the possibility
that results of work will not fulfill projections/expectations
and realize the perceived potential of the CompanyÁs projects;
uncertainties involved in the interpretation of drilling
results and other tests and the estimation of gold reserves
and resources; risk of accidents, equipment breakdowns
and labour disputes or other unanticipated difficulties
or interruptions; the possibility of environmental issues
at the CompanyÁs projects; the possibility of cost overruns
or unanticipated expenses in work programs; the need to
obtain permits and comply with environmental laws and
regulations and other government requirements; fluctuations
in the price of gold and other risks and uncertainties,
including those described in the CompanyÁs Annual Information
Form filed with SEDAR (available at www.sedar.com)
for the year ended December 31, 2002.
Forward-looking statements
are based on the beliefs, estimates and opinions of the
CompanyÁs management or its independent professional consultants
on the date the statements are made. Seabridge undertakes
no obligation to update these forward-looking statements
if such beliefs, estimates or opinions or other factors
should change.
ON BEHALF OF THE BOARD
"Rudi Fronk,"
President & C.E.O.
For further information please contact:
Rudi P. Fronk, President and C.E.O.
Tel: (416) 367-9292 ů Fax: (416) 367-2711
Email: info@seabridgegold.net
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