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Prospecting and small-scale mining took place near Red Mountain, in the Bitter Creek Valley, as early as 1900 and persisted
intermittently through the first half of the 20th century. At this time much of Red Mountain was covered with snow or glacial
ice. Since that time the glaciers have retreated significantly, exposing large portions of the summit and surrounding bedrock.
Porphyry molybdenum and copper occurrences in the immediate Red Mountain area were explored in the 1960s and 1970s. In 1965,
molybdenum and native gold occurrences were discovered at McAdam Point, on the south side of Red Mountain. Additional small
molybdenum showings were subsequently located and explored in the central cirque of Red Mountain. Significant gold values (up to
37 g/t) were obtained in 1973 from Lost Mountain, a nunatuk immediately south of Red Mountain. Gold exploration at Red Mountain
then ceased as it was generally regarded as a setting favorable for porphyry style molybdenum mineralization.
Evaluation of the Red Mountain area for gold potential recommenced in 1987. The Wotan claims were staked in 1988 by local
prospectors and optioned to Bond Gold in 1989. In that year, gold mineralization that was the surface expression of the Marc zone
was discovered and a drill program was initiated.
From 1989 to 1991 Bond carried out exploration programs including 17,638 metres of diamond drilling, surface mapping and
sampling and airborne EM and magnetic surveys.
Lac Minerals acquired Bond in early 1991. Surface drilling on the Marc, AV, JW, AV Tails and 141 zones continued in 1991,
1992, 1993 and 1994, totalling 48,000 metres. Underground exploration of the Marc zone, including a total of 38,600 metres
of diamond drilling, was conducted in 1993 and 1994 via the use of a 1,000-metre production-sized decline. By 1994, Lac
believed they had identified a large enough resource to carry out a feasibility analysis. A draft feasibility study was
carried out in 1994 and intensive environmental baseline data collection and assessment was undertaken in the latter half of
1993 and through 1994.
In September 1994, Barrick acquired Lac and the Red Mountain project assets were transferred to Barrick. Barrick sold the
project to Royal Oak in August 1995. Royal Oak extended the underground workings, undertook a drill program seeking extensions
to the known deposits, and worked on plans for the development of the project. In 1996, lacking funds for exploration, Royal
Oak virtually ceased all activity at Red Mountain. By early 1999 Royal Oak was in serious financial difficulty and an Interim
Receiver was appointed to dispose of Royal Oak's assets, including Red Mountain.
North American Metals Corp.’s ("NAMC") purchase of the Red Mountain project was completed on 10 February 2000. During 2000, NAMC completed a comprehensive
review of the Red Mountain geological and environmental data. NAMC also carried out geological work including the re-logging
of a substantial quantity of drill core in order to produce an improved resource estimation model. Additional metallurgical
testing investigated the possibility of producing a saleable gold-bearing pyrite concentrate. An access road route was
designed from the end of the existing road to the site. NAMC also met with local and provincial officials to discuss the
project, its history and some possible new development scenarios. During 2001 new management at Wheaton River Minerals elected to dispose of
certain assets, including Red Mountain. Effective December 31, 2001, Seabridge agreed to acquire the Red Mountain project.
In total, 466 surface and underground diamond drill holes totalling 134,807.24 metres have tested a variety of targets on the
Red Mountain property. Four hundred and six holes, totalling 105,129.20 metres, were drilled by Bond and Lac between 1989 and
1994. The remaining 60 holes, totalling 29,678.04 metres, were drilled by Royal Oak in 1996. No drilling was carried out by
NAMC. The majority of drilling has tested the Marc, AV, JW and AV-JW Tails mineralized zones. A total of 368 drill holes
from the Bond and Lac programs, including 207 surface drill holes and 161 underground drill holes, have tested this area.
Metallurgical testing has been performed by Lakefield Research (1991), Brenda Process Research (1994) and International
Metallurgical and Environmental (1997), a derivative of Brenda Process Research. In the spring of 2000, Dr. Morris Beattie,
P.Eng. was asked to review the historical work and conduct flotation testwork on Red Mountain samples prepared by NAMC
staff. The metallurgical test results indicate that recoveries of 87-90% can be achieved through conventional milling
activities.
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