The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
North of 60 Mining News - September 27, 2024
Ore mined from the deposits outlined at KSM will be transported through 14-mile-long tunnels to the processing plant that will recover the copper, gold, and other metals.
Map of the planned mining and processing areas at KSM and the Mitchell Treaty Tunnels linking the two.
Seabridge Gold Corp. Sept. 25 announced that the British Columbia government has renewed occupational rights for tunnels that will connect the world-class copper-gold deposits at KSM to an area selected for the processing plant and tailing storage facility.
According to the most recent calculation, KSM hosts 153.9 million ounces of gold and 54.5 billion pounds of copper in all resource categories (88.3 million oz of gold and 19.4 billion lb of copper in measured and indicated, and 65.6 million oz of gold and 35.1 billion lb in inferred).
A prefeasibility study (PFS) completed in 2022 details plans for developing an open pit mining operation at KSM capable of producing more than 1 million oz of gold, 3 million oz of silver, 178 million pounds of copper and 4.2 million lb of molybdenum annually for 33 years.
In addition, the project hosts enough underground mineable resources to produce an estimated 14.3 million oz of gold, 14.3 billion lb of copper, 68.2 million oz of silver, and 13.8 million lb of molybdenum for 39 years.
The mine plan calls for developing a pair of 23-kilometer (14-miles) tunnels that connect the deposits on the west side of a mountain saddle at KSM to the processing and tailings storage areas on the east side. Roughly 12.5 kilometers (7.8 miles) of these Mitchell Treaty Tunnels (MTT) pass through 11 mineral claims held by a joint venture between Tudor Gold Corp., Teuton Resources Corp., and American Creek Resources Ltd.
Map of the planned mining and processing areas at KSM and the Mitchell Treaty Tunnels linking the two.
In 2014, the B.C. government issued a license of occupation (LoO) that provides Seabridge subsidiary KSM Mining the rights to occupy the area where MTT will be developed and for a 100-meter area surrounding the tunnels, including through the mineral claims being explored by Tudor Gold and its partners.
These rights, however, were set to expire on Sept. 27. The B.C. government has now issued a new 20-year license of occupation, which clarifies that MTT takes priority going through the 11 claims that make up the Treaty project.
While KSM Mining has no mineral rights for the occupational area for the tunnels, the LoO states that the Treaty project claimholders may not "obstruct, endanger or interfere with, or allow any other person to obstruct, endanger or interfere with, the construction, operation or maintenance of" the MTT.
"We are pleased the renewed LoO provides greater clarity on the priority rights of KSMCo's (KSM Mining) MTT across the Treaty Creek Project," said Seabridge Gold Chairman and CEO Rudi Fronk.
Tudor Gold does not believe the province has the right to issue a license that interferes with its mineral rights and will pursue steps to protect those rights, including a takings claim to recoup value from the corridor covered by the MTT license.
"Seabridge continues to invite Tudor to enter into discussions with us on how we may be able to accommodate the progression of the Treaty Creek project while constructing and operating our MTT," said Fronk.
The Mitchell Tunnels license extension, along with the KSM substantially started designation issued by the B.C. government in July, provides further surety for KSM as Seabridge negotiates with potential partners to develop a mine at the world-class copper-gold project in B.C.'s Golden Triangle.
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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