The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
North of 60 Mining News – April 1, 2019
Drilling at KSM has outlined 2.2 billion tons of reserves containing 33.8 million ounces of gold, 10.2 billion pounds of copper and 207 million lb of molybdenum.
Seabridge Gold Inc. March 25 announced a five-year extension of the provincial Environmental Assessment certificate for its KSM copper-gold project in northwestern British Columbia.
Originally issued in 2014, the original KSM EA certificate was issued by the Province for an initial five-year term set to expire on July 29, 2019. The new five-year certificate was approved with the same terms and conditions as the original, including the requirement to commence construction of a mine at KSM within the five-year period.
"We are pleased that our EA Certificate has been renewed until 2024 under the same terms and conditions, reaffirming the Government of British Columbia's support for KSM and the robustness of the original 2014 EA," said Seabridge Chairman and CEO Rudi Fronk. "The extension highlights that KSM is a well-designed, environmentally responsible project offering significant economic benefits for British Columbia and Canada."
The four deposits that make up the KSM project – Kerr, Sulphurets, Mitchell and Iron Cap – encompass 2.2 billion metric tons of proven and probable reserves averaging 0.55 g/t (38.8 million oz) gold, 0.21 percent (10.2 billion pounds) copper, 2.6 g/t (183 million oz) silver, and 42.6 parts per million (207 million lb) molybdenum.
These reserves support a 53-year mine that would average 540,000 oz gold, 156 million lb copper, 2.2 million oz silver, and 1.2 million lb molybdenum per year, according to a 2016 prefeasibility study.
At the time of the PFS, Iron Cap was a relatively small deposit that was not slated to be mined until about 32 years into the mine plan.
Drilling over the past two years, however, has significantly expanded this deposit.
Iron Cap now hosts 423 million metric tons of indicated resource averaging 0.41 grams per metric ton (5.58 million oz) gold, 0.22 percent (2.05 billion lb) copper, 4.6 g/t (62.56 million oz) silver and 41 parts per million (38 million lb) molybdenum; plus 1.9 billion metric tons of inferred resource averaging 0.45 g/t (27.47 million oz) gold, 0.3 percent (12.56 billion lb) copper, 2.6 g/t (158.74 million oz) silver and 30 ppm (126 million lb) molybdenum.
This deposit is closer to infrastructure than Kerr and Sulphurets and has the right geometry to consider being mined by block caving, a bulk underground mining technique. Due to these advantages, Seabridge is now considering the potential of including Iron Cap earlier in the life of the mine.
"Our exploration success at Iron Cap over the past two years gives us greater flexibility to optimize project economics," said Fronk.
The extension will provide until mid-2024 to consider the economic and other benefits that an earlier inclusion of Iron Cap could bring to KSM and secure a partner to develop a mine at the enormous gold-copper project north of Stewart, B.C.
Seabridge initiated the renewal process in October of last year, following consultation with the local First Nations.
"On behalf of Seabridge and our shareholders, I would like to thank the Nisga'a Nation, and the Tahltan and Gitxsan Nations for their ongoing guidance and support of KSM during the extension review process," Fronk said.
–SHANE LASLEY
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