Highlights Summary Acquisition
Agreement
Location
and Climate
Land Status Exploration
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Potential
Gold
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SRK
Study
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Project Development Description Preliminary Economic
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UPDATED AUG-16-07

Project Development Description


The 1000tpd trackless underground mine, assumed to be owner operated, would be accessed through the existing exploration decline and a new portal at 1650m elevation. Production tonnes by mining method are planned at 65% longhole, 29% cut and fill, and 6% development muck. Longhole stope tonnes vary from 18 to 35kt. Backfill would consist of both cemented and unconsolidated waste rock, and no development waste rock would remain on surface at project completion. Mucking to a main muck pass would be accomplished by 6yd and 4yd scoops. An underground rock breaker would size the muck to be hauled out of the mine in 20t trucks..

A 1000tpd gold-silver recovery mill would reclaim feed from a run-of-mine stockpile. The mill process would include a normal two-stage SAG/Ball mill grinding circuit with high capacity thickening, cyanide leaching, carbon-in-pulp adsorption, carbon elution and regeneration, electro-winning and refining, and cyanide destruction with SO2 and air. Metallurgical recoveries are estimated at 90% for gold and 80% silver.

Mill tailings would be discarded to an earth and rock constructed tailings dam (with water reclaim facilities) near the mill. The tailings facility, proposed to be located in the Red Mountain cirque, follows the design used in the 1994 feasibility study. It is the recommendation of SRK that a further study be undertaken by Seabridge to assess alternative tailings facility locations and designs which could materially reduce the capital cost of the tailings storage facility.

The project schedule has the new access road opened up for traffic by the end of the first operating season (mid-May through October). The pre-production period extends through seasons 2 and 3 with mill construction, tailings dam construction, and development of the underground mine. Eight seasons of production (157.5kt/a) follow in seasons 4 to 11. Mine closure is planned for season 12.