| Effective December 31, 2001, Seabridge agreed to acquire a 100% interest in the Red Mountain
project from North American Metals Corp. ("NAMC"), a subsidiary of Wheaton River Minerals Ltd. ("WRM"). 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
134,800 metres in 466 holes. In addition, 2,000 metres of underground workings have been excavated, including a 1,000-metre
production-sized decline. Significant metallurgical testing has also been performed on the deposit with results indicating that
recoveries of 87-90% can be achieved through conventional milling activities.
Numerous resource estimates have been reported by previous owners of Red Mountain. In May 2001, WRM completed a
comprehensive review and validation of the project’s geological and environmental data. This review included re-logging
all drill core and the construction of a new kriged resource block model for the Marc, AV and JW zones. Prior to Closing,
Seabridge commissioned D.L. Craig, Professional Geologist, to perform an independent technical review of the new resource
model for the Marc, AV and JW zones, and in the process, satisfied the requirements under National Instrument 43-101 for
mineral resource public disclosure. In late 2004 Seabridge commissioned SRK Consulting (Canada) Inc. ("SRK Consulting")
to address the 132 and 141 zones, which are in close proximity to the Marc, AV and JW zones. In January 2005, SRK Consulting
completed their assessment and prepared a technical report on these zones. The new model for Red Mountain, including the Marc,
AV, JW, 132 and 141 zones, estimates 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, the project contains an additional 2.08 million
tonnes grading 3.71 grams of gold per tonne (248,000 ounces).
In January 2003 Seabridge engaged Steffen Robertson and Kirsten (Canada) Inc. ("SRK") to complete an engineering and
preliminary economic study of the project. The objectives of the study were to build on previous project work to identify
the best project development approach, and to assess the current economics of the project. The study was completed in August
2003 at a cost of approximately $100,000.
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