The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
North of 60 Mining News - August 2, 2024
The Bell-Irving River Bridge is among the improvements Seabridge has invested in to ready its world-class KSM copper-gold mine project in Northern British Columbia for development.
Nations Royalty July 30 reported that the British Columbia government has elevated the status of Seabridge Gold Corp.'s KSM copper-gold mine project in Northern B.C. to "substantially started," an official designation that ensures the previously approved environmental assessment certificate (EAC) for KSM remains in effect for the life of the world-class mine project.
"This is a significant regulatory milestone for the KSM Project, positioning it to become a multigenerational economic anchor for northwestern B.C.," said Seabridge Gold Chairman and CEO Rudi Fronk. "KSM's large copper reserve can contribute to meeting North America's technology, defense, and security objectives while the project can also promote the economic wellbeing of our Indigenous partners."
This project also happens to be a potential multigenerational economic anchor for Nations Royalty, an investment vehicle formed earlier this year to provide Canadian First Nations the opportunity to bring forward and diversify the value of royalties and other financial incentives they are holding under benefits agreements with mining and other resource companies hoping to do business in their traditional territories.
Nations got its start with five royalties deposited by Nisga'a Nation, whose territory covers the southern third of B.C.'s famed Golden Triangle.
The largest of these royalties are from future metals production at KSM, which is forecast to produce more than 1 million oz of gold, 3 million oz of silver, 178 million lb of copper, and 4.2 million lb of molybdenum annually for 33 years.
This operation only includes about 25% of the resources outlined so far at KSM. Once in operation, which is currently expected around 2032, it is anticipated that this mine will begin generating more than $30 million (C$41 million) in annual revenue for Nations.
"Our payment entitlement, on the large, long-life copper-gold-silver-molybdenum Deposit, is a core piece of the foundation for the future success of Nations Royalty," said Nations Royalty Vice President of Corporate Development Kody Penner.
Over the years, Seabridge has invested more than C$1 billion (US$730 million) in exploration and early development work at KSM. The company has also built a strong rapport with the Nisga'a and Tahltan First Nations, whose traditional territories share a border near the project.
In early 2023, the Nisga'a and Tahltan First Nations unveiled the Treaty Creek Limited Partnership, an alliance that strengthens their leadership when it comes to Northern BC's growing mining sector and realizes the economic opportunities related to KSM.
At the time, both First Nations recognized Seabridge for its "support and encouragement for the creation of our Treaty Creek Limited Partnership, and their willingness to actively engage and work with our partnership on their KSM project."
Input from the Tahltan and Nisga'a Nations played an important role in the B.C. Environment Assessment Office's approval of Seabridge's KSM substantially started status application.
"Nations Royalty wishes to congratulate Seabridge and acknowledge the work completed by the Government of British Columbia, as well as the thorough consultation with Indigenous Groups and nearby communities, including Nisga'a and Tahltan," Penner said.
Seabridge's next goal is to forge a partnership with a global mining company that has the financial wherewithal and technical expertise needed to build and operate a world-class mine at KSM.
"This decision provides the regulatory assurance we have needed to move forward with joint venture discussions for the KSM project," said Fronk.
"We look forward to all groups continuing to work together to advance the KSM project and fruitful outcomes to Seabridge's joint venture discussions," said Penner.
The other Nations' royalties deposited by Nisga'a Nation include:
• Brucejack – A high-grade underground gold mine about 35 miles north of Stewart, B.C., that is operated by Pretium Resources Inc., a subsidiary of Newmont Corp.
• Premier and Red Mountain – A pair of gold-silver mine projects that will process ore through Ascot Resources Ltd.'s recently completed mill on the Premier property.
• Kitsault – A high-grade molybdenum mine project on a large and fully permitted brownfield site with basic infrastructure being advanced by New Moly LLC.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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