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Red Mountain is a structurally-controlled, advanced-stage gold deposit located 18
kilometers east of Stewart, British Columbia. The deposit was originally drilled by
Bond Gold in the late 1980s, and was subsequently explored by Lac Minerals and Royal
Oak Mines. To date, approximately US$39 million has been spent by previous owners
at Red Mountain. Diamond drilling on the property has totaled 127,000 meters in 467
holes. In addition, 2,000 meters of underground workings have been excavated, including
a 1,000-metre production-sized decline.
Previous resource estimates for Red Mountain concentrated on the Marc, AV and JW
zones. A Technical Report on these zones dated March 4, 2002 (available on SEDAR)
estimated measured resources of 1.26 million tonnes grading 8.01 grams of gold per
tonne (324,000 ounces) plus an indicated resource of 0.34 million tonnes grading 7.04
grams of gold per tonne (76,000 ounces) for a total measured and indicated gold resource
of 400,000 ounces. In the inferred category, these zones contain an additional 0.35 million
tonnes grading 7.45 grams of gold per tonne (83,000 ounces). In 2003, Seabridge commissioned
SRK to undertake a preliminary economic assessment of the stated resources at Red Mountain
to identify the best project development approach, and assess the potential economics of
the project. The study´s preliminary projections included an 8 year mine life with
average cash operating costs of US$213 per ounce. (For details on the preliminary economic
assessment please SEE Seabridge´s press release dated September 23, 2003.)
The new SRK Technical Report addressed the 132 and 141 zones, which are located in
close proximity to the Marc, AV and JW zones. Data used by SRK in estimating the Mineral
Resources for Zones 132 and 141 include a sub-set of seventy-eight boreholes totaling
approximately 28,711 meters. Thirty-four of these holes have intersected gold mineralization
in Zones 132 and 141. The remaining forty-four holes are peripheral to the Zones and were
used to assist the interpretation of geological data. Solid body models were created by SRK
to encompass the gold and silver mineralization above a 1.0 gpt gold cut-off. The original
Gemcom block model was expanded to accommodate Zones 132 and 141 by extending its western
boundary an additional 300 meters to the west and deepening it by another 100 meters. A bulk
density of 2.91 was used to convert volumes into tonnages for all blocks in the model for
Zones 132 and 141. After statistical and geostatistical modeling, SRK interpolated gold
and silver grades into an expanded block model by ordinary kriging. For comparison, gold
and silver grades were also interpolated using an inverse distance weighted cubed methodology.
The Mineral Resources estimated by SRK for Zones 132 and 141 of the Red Mountain gold project
are classified in the Inferred Mineral Resource category according to the “CIM Standards
on Mineral Resources and Reserves: Definitions and Guidelines” (August, 2000).
This classification is based primarily on the drilling spacing and the lack of underground
exploration data, which lower the confidence in the lateral continuity of borehole data.
This is consistent with the classification used for the Marc, AV and JW zones.
The newly stated gold resource estimates were prepared by SRK under the direction of
Ron Deptuck, P.Geo, and including Kelly Sexsmith, P. Geo and Jean-Francois Couture, P. Geo,
all of whom are independent of Seabridge and are Qualified Persons as defined by National
Instrument 43-101. The newly stated mineral resources do not have demonstrated economic
viability and accordingly are not mineral reserves.
Seabridge has been designed to provide its shareholders
maximum leverage to the price of gold. The Company
has acquired a 100% interest in eight North American
gold projects which collectively contain an estimated
8.74 million ounces of resources in the measured and
indicated categories (250.1 million tonnes grading 1.09
grams of gold per tonne) plus an additional estimated
6.83 million ounces of resources in the inferred category
(201.0 million tonnes grading 1.06 grams of gold per
tonne). (See Gold Resources Table
and press releases dated June 11, 2003, July 18, 2002,
April 17, 2002, April 15, 2002, andJune 14, 2001).
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 Company¬s
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. Forward-looking statements also include
reference to events or conditions that will, would, may,
could or should occur. 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 Company¬s 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 Company¬s 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 Company¬s 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
Company's 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 Fax: (416) 367-2711
Email: info@seabridgegold.net
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