The property consists of 30 contiguous mineral claims and 19 contiguous placer claims
covering an area of approximately 6,726 hectares while the placer claims cover about
4,554 hectares. It should be noted that most of the placer claims lie "over the top" of
the mineral claims. Seabridge also has acquired 45 contiguous mineral claims
(Seabee Property) that are located about 19 kilometers northeast of the KSM property.
The KSM mineral claims were converted from 58 legacy claims to B.C.'s new Mineral
Titles Online (MTO) system in 2005. Eleven legacy placer claims were converted in 2005
to nine cell placer claims. Ten cell placer claims have been added to the property and
are contiguous with the converted legacy placer claims. In the MTO system, claims are
located digitally using a fixed grid on lines of latitude and longitude with cells measuring
15 seconds north-south and 22.5 seconds east-west (approx. 460 by 380 meters at KSM).
The legacy claims were located by previous owners by placing tagged posts along the boundaries;
however the survey method employed in locating the legacy claims is not known. With the
MTO system no markings are required on the ground and the potential for gaps and/or overlapping
claims inherent in the old system is eliminated.
The claims are 100% owned by Seabridge. Placer Dome Inc. (now Barrick Gold) retains a 1% net
smelter royalty (NSR) that is capped at $4.5 million. Two of the pre-converted claims
(Xray 2 and 6) are subject to a contractual royalty obligation in accordance with terms in the
underlying Dawson Agreement. The lands covered by these claims are now contained within the
converted Xray 1 claim (Tenure No. 516245). There is an additional underlying agreement whereby
advance annual royalties payable to Dawson are being paid by Placer Dome Inc.
Annual holding costs for all of the claims (mineral and placer) are approximately $172,988. In 2007,
assessment work was filed to advance the year of expiry to 2018. Neither the KSM placer claims nor the
Seabee Property claims have had any work filed to date, but both are in good standing to 2008 and 2009.
The KSM Property falls within the Cassiar-Iskut-Stikine Land and Resource Management Plan (LRMP). There
are no Protected or Special Management Areas overlapping the KSM Property. A Conservation-oriented Protection
Area and large River Corridor Special Management Area are currently being considered along the lower two-thirds
of the Unuk River, which may impact the approval process of potential development plans and valley access to the
project. The government has recognized the significance of historical mining activity in this area, which includes
the active Eskay Creek gold and silver mine and the past producing Snip, Granduc, and Premier mines. Based on
various anecdotal reports, the Provincial government is committed to supporting future mining development in the region.
The KSM Project is situated within the traditional lands of several First Nations. In addition, other groups in the
area may have an interest in the project as it is situated near the headwaters of their traditional river systems. All First
Nations have been active community and development partners in industrial developments within Northern British Columbia.
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