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All disclosure of a scientific or technical nature in this Annual Information Form in
respect of the Kerr-Sulphurets Project, other than the resource estimate calculated by
Placer Dome (CLA) Limited, was prepared by, or under the supervision of, William E.
Threlkeld (Licensed Registered Geologist #790 in the State of Washington),
a Vice President of Seabridge. Mr. Threlkeld is a “qualified person” under
National Instrument 43-101 of the Canadian Securities Administrators (“NI 43-101”).
The Kerr-Sulphurets project is comprised of two contiguous claim blocks in the Iskut-Stikine
region in British Columbia, approximately 20 kilometres southeast of the Eskay Creek Mine.
The project consists of two distinct deposits which have been modelled separately by
Placer Dome (CLA) Limited (“Placer Dome”). At the two deposits, Placer Dome
has estimated a total indicated gold resource of 2.1 million ounces, with an additional 1.3
million ounces of gold in the inferred resource category, which is a historical resourse estimate.
At Sulphurets, Placer Dome has estimated an indicated gold resource of 1.3 million ounces
of gold and 277 million pounds of copper contained in 39.3 million tonnes grading 1.05 grams
of gold per tonne and 0.32% copper, at a 0.50 gram per tonne cut-off. In the inferred category,
Placer Dome estimated an additional 458,000 ounces of gold and 113 million pounds of copper
contained in 15.5 million tonnes grading 0.92 grams of gold per tonne and 0.33% copper. The
Sulphurets gold zone is the collective name for at least four intrusive centred gold-rich
zones spanning approximately 3 kilometres of strike length. The resource calculations made
by Placer Dome were confined to 1,000 metres of the 3 kilometre strike length.
Geologic consultants to Seabridge have confirmed that the potential exists to significantly
expand the known gold resource within the Sulphurets zone.
The Kerr deposit was modelled by Placer Dome as a copper-gold porphyry system and
contains an indicated resource of 809,000 ounces of gold and 1,208 million pounds of copper
contained in 74.0 million tonnes grading 0.74% copper and 0.34 grams of gold at a 0.40% copper
grade cut-off. In the inferred category, Placer Dome estimated an additional 794,000 ounces
of gold and 1,119 million pounds of copper contained in 66.8 million tonnes grading 0.37 grams
of gold per tonne and 0.76% copper.
Option Agreement
In September 2002, Seabridge optioned the property to Noranda Inc. (now named Falconbridge Limited) which
can earn a 50% interest by spending $6 million on exploration within six years. Falconbridge can earn a further
15% by funding all costs to complete a feasibility study on the project. If after earning its
50% interest, Falconbridge elects not to proceed with a feasibility study, Seabridge has the option
to acquire Falconbridge's interest for $3 million. After having earned its 50% interest, Falconbridge has
the right to delay its decision to proceed with a feasibility study for up to three years by either
spending $1.25 million per year on the property or making payments to Seabridge which would total
$1.5 million over the three year period.
During 2003 and 2004 Falconbridge conducted geophysics, surface mapping, surface sampling and target
delineation at the project. During 2005, Falconbridge drilled 16 widely-spread core holes totaling 4,092 meters
to test six targets located outside the known deposits. Gold-copper mineralization was encountered
at all six targets, with the Iron Cap, West Mitchell and Icefild Zones yielding the most encouraging results.
In April, 2006, Seabridge entered into an agreement to reacquire 100% of the Kerr-Sulphurets project for
shares and warrants conditional upon the discovery of additional gold resources. As part of the agreement,
Falconbridge undertook to manage a 2006 exploration, consisting of 9100 meters of core drilling, under the
direction of Falconbridge. Drilling began in July with a focus on the Mitchell Zone and the Sulphurets deposit.
The drilling at Mitchell confirmed the presence of a large gold-copper porphyry system while the holes drilled
at Sulphurets extended this deposit along strike and down dip. A 43-101 compliant resource calculation has
estimated an inferred resource at Mitchell of 13.1 million ounces of gold and 2.2 billion pounds of copper.
In July, 2007, Seabridge commenced a 15,000 metre dril program focussed on the Mitchell zone with the aim of
exploring for extensions to the deposit (south, north and at depth) and upgrading a significant portion of the inferred
resource to the measured and indicated categories. Early indications are that this program will achieve its objectives.
In January, 2008, Seabridge received a 43-101 resource estimate for the Kerr and Sulphurets zones confirming total
resources of 4.5 million ounces of gold and more than 3 billion pounds of copper.
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