Red Mountain: RESOURCES
Numerous resource estimates have been reported by previous owners of Red Mountain. In May 2001, Wheaton Reiver Minerals Ltd. 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. Prior to Closing, Seabridge commissioned D.L. Craig, Professional Geologist, to perform an independent technical review of the new resource model, concentrating on the Marc, AV and JW zones and in the process, satisfied the requirements under National Instrument 43-101 for mineral resource public disclosure.
For the Marc, AV and JW zones, measured and indicated resources at a cut-off grade of 1.0 gram per tonne are estimated to be 1,594,000 tonnes grading 7.80 grams per tonne gold (400,000 ounces of gold) and 29.27 grams per tonne silver (1.5 million ounces of silver). An additional 346,000 tonnes grading 7.45 grams per tonne gold (83,000 ounces of gold) and 12.36 grams per tonne silver (138,000 ounces of silver) are classified as inferred. The mineral resource estimate for Red Mountain in the Craig Report incorporates data from 206 drill holes that were relogged in 2000 by North American Metals Corp.
In late 2004, Seabridge commissioned SRK Consulting (SRK) to address the 132 and 141 zones, which are in close proximity to the Marc, AV and JW zones. In January 2005, SRK completed their assessment and prepared a technical report on these zones. In their report, SRK estimates an inferred mineral resource for these zones of 1.73 million tonnes at a grade of 2.97 grams of gold per tonne (165,000 ounces) at a cut-off grade of 1.0 gram of gold per tonne. Data used by SRK in estimating the Mineral Resources for Zones 132 and 141 include a sub-set of seventy-eight boreholes totalling 28,711 meters. Thirty-four of these holes have intersected gold mineralization in Zones 132 and 141. The remaining forty-four holes are peripheral to the Zones and were used to assist the interpretation of geological data.
In both the Craig Report and the SRK Resource Report, Gemcom software was used to create geological and mineralization outlines in plan and section for a 3D block model. Gold and silver grades were interpolated using ordinary kriging with anisotropic search ellipses designed to fit the geology.
Surface diamond drilling programs were carried out by Falcon Drilling Ltd. of Prince George, B.C., from 1989 to 1991, by J.T. Thomas Diamond Drilling Ltd. of Smithers, B.C., from 1992 to 1994 and by Britton Brothers Diamond Drilling Ltd. of Smithers, B.C., in 1996. Underground drilling programs in 1993 and 1994 were carried out by J.T. Thomas Diamond Drilling Ltd. of Smithers, B.C. The spacing and quality of drill hole data is reasonable for establishing the degree of confidence necessary for estimating and classifying a mineral resource according to NI 43-101.
Standard procedures for sample collection and preparation were applied to all drill core collected on the property since 1989. The Craig Report and the SRK Resource Report each state that the author has no reason to doubt that the sample collection by previous operators of the Red Mountain project was done in anything other than a professional and workmanlike manner. As such, it is believed that the sample quality is good and that they are representative of the mineralization. The authors are also of the opinions that appropriate QA/QC procedures were followed by previous operators of the Red Mountain project, and that as a result of these procedures, there is no reason to doubt the reliability of the assay results.
