Toronto, Ontario–(Newsfile Corp. – August 3, 2022) – Seabridge Gold (TSX: SEA) (NYSE: SA) today announced the effects of an initial economic assessment review (the “PEA 2022”) for a potential underground mine of a rich copper deposit on its one hundred percent owned KSM allocation located in northern British Columbia, Canada. The PEA 2022 is an independent mining plan that committed to comparing a possible long-term expansion of the KSM mine with that of Iron Cap and Kerr copper – rich deposits after the final touch of the 2022 Preliminary Feasibility Study (“PFS”) mining plan. The PEA 2022 is primarily an underground block mining operation supplemented through a small open pit and is expected to operate for 39 years with a maximum force generation of 170,000 t/d, demonstrating that KSM has potential for a long-term, multigenerational mining allocation with flexibility.
The PFS 2022 plan disclosed on June 28, 2022 is an open-pit plan with a mine life of 33 years limited to the Mitchell, East Mitchell and Sulphurets deposits. None of the mineral resources incorporated in the PEA 2022 Mining Plan have been used in the PFS 2022 Mining Plan. To view the press release announcing the effects of PFS 2022, click here.
Seabridge Gold President and CEO Rudi Fronk said: “KSM is, in fact, a complete district house for a nest of potentially inexpensive porphyry deposits with other characteristics. In our updated PFS, we focus on gold-rich deposits due to their rapid return to investment and the relative simplicity of open-pit mining only. However, we are well aware that a deep deficit of mined copper is projected on the horizon as the world electrifies and moves towards a net zero carbon future. Therefore, we look after highlighting the potential of KSM to help address this need more fully than the mining plan contained in our updated initial feasibility study. This opportunity will be exciting for a potential partner.
The PEA 2022 envisions a specific underground mining plan that begins with the progression of an underground Iron Cap block mine supplemented through a small open pit at Kerr. The progression of a Kerr block underground mine began when the progression of Iron Cap slowed. The source of The Kerr block cellar plant begins 6 years after the commissioning of the power source of the Iron Cap plant. The delivery of the grinding load to the processing plant is over 170,000 tpd up to year 12. Throughout the life of the mine of 39 years. , the grinding load will be delivered to a flotation-concentration circuit. The flotation plant will produce a separate gold/copper/silver concentrate and molybdenum concentrate for truck transport to a nearby seaport in Stewart, British Columbia.
Mineral resources
The use of ETH 2022 and EEP 2022 in the past revealed resource estimates that are based on $1300 per ounce of gold, $3. 00 per pound of gold, $20. 00 per ounce of silver, and $9. 70 per pound of molybdenum. In addition, resources are limited through the conceptual bureaucracy of mining.
The mineral resources measured and indicated in KSM are estimated at 5400 million tons with a grade of 0. 51 grams consistent with one ton of gold, 0. 16% consistent with 2. 4 grams consistent with one ton of silver and 63 ppm of molybdenum (88. 4 million gold, 19. 4 billion pounds consistent with, 414 million silver and 742 million pounds of molybdenum). Another 5. 7 billion tons are estimated in the inferred mineral resources category of 0. 36 grams per ton of gold, 0. 28% per ton, 2. 2 grams per ton of silver and 33 ppm of molybdenum (65. 6 million gold, 35. 2 billion pounds of copper and 406 million pounds of silver and 415 million pounds of molybdenum). A detailed table of KSM’s mineral resources can be found at the end of this press release.
PEA Mining Design 2022
Kerr’s open pit was designed to complement the source of the block mill by increasing the production of PEA blocks.
Thresholds for feeding waste to the plant are decided using a net casting power (“NSR”) for each block in the model. $10. 75/t. The NSR is calculated using procedural costs and recoveries for each metal, taking into account all off-site losses, as well as transportation, smelting and refining costs. NSR calculations use $2. 70 consistent with the pound of cop consistent with and US$17. 50 consistent with the ounce of silver and an exchange rate of US$0. 83 consistent with C$1. 00.
Iron Cap and Kerr’s illuminated underground block mine designs are based on modeling from GEOVIA’s Footprint Finder (FF) software. than the maximum demonstrated rate of the industry and the initial and maximum production rates at which individual reduction problems can be eliminated. The values selected for these inputs are based on industry averages adjusted for expected conditions.
The Iron Cap underground block mine includes a consistent progression estimated over a four-year period, a steady increase over a 6-year period, a steady production of 32. 9 million tons in one year over 17 years, and then a 6-year production slowdown in a steady period. withiod. The Iron Cap Block Cave is next to Mitchell-Treaty Tunnels (“MTT”), the shipping conduit between the mine and the factory.
The Iron Cap mine is designed as a partially electrified mine with partial automation where battery electric cars upgrade diesel production chargers at the point of extraction and trains upgrade trucks at the point of transportation. on the western boundary which develops at the beginning of the mine’s useful life at 750 m on the eastern edge of the design which develops expired in the life of the mine.
Kerr Block Cave has an estimated progression duration of five years, a production increase consisting of a five-year period and a stable state production of 29. 2 million consistent tons per year for a total of 20 years with a seven-year production drop to 15. 0 million tons transitioning from the first elevator to the moment.
Kerr Block Cave was designed as a conventionally developed and operated underground block mine, leaving additional merit for advancing through electrification.
NSR mining prevention is CA$20 consistent with the ton for Iron Cap Block Cave and CA$18 consistent with the ton for Kerr Block Cave. The plant feed contained in the mining plan for PEA 2022, adding dilution and mine losses, is shown as follows.
Supply to PEA mining plan plant
Note: The 2022 EAP is initial in nature and includes inferred mineral resources that are geologically too speculative to apply economic considerations that would allow them to be classified as mineral reserves, and there is no certainty that the effects of the 2022 PEA assessment will materialize. . Mineral resources are not mineral reserves and have no proven economic viability.
Production
The PEA 2022 assumes that the PSF 2022 plan has been realized. The open-pit mining apparatus will be moved to the Kerr reservoir to begin the pre-clearing while the Iron Cap block cave is developed. Year 1 of the PEA 2022 mine life coincides with the first source year for the Iron Cap deposit plant. The power supply of the factory from Kerr Block Cave begins in year 7. The PEA 2022 production plan produces 14. 3 billion pounds of copper, 14. 3 million ounces of gold, 68. 2 million ounces of silver and 13. 8 million pounds of molybdenum from 1. 7 billion tons of plant strength over a 39-year lifespan. The production schedule is shown in the following chart.
Food Production Schedule for Pea Plants 2022
The estimated annual production is summarized as follows:
Average annual steel production
Note: Total annual production of steel contained in copper concentrate, walleye and molybdenum concentrate.
Tailings control is conceived as a combination of technically feasible garage approaches that will be subtle in long-term studies to generate adequate and culpable responses based on chosen locations and available generation.
capital costs
The initial capital charge for the 2022 PEA is estimated at US$ 1500 million, with maintenance capital over the life of the mine of 39 years estimated at US$ 12. 8 billion, governed through the progression capital of the block cave. Initial capital includes all capital up to the first year of the plant (Year 1). Capital estimates can be summarized as follows:
Capital costs of the 2022 PEA (million US dollars)
Note: Numbers may not load due to rounding
Operating costs
Average prices consistent with mine prices, process, and general and administrative expenses over the life of the allocation (including waste extraction and on-site electric power credits, off-site shipping, and smelting prices) are estimated at $11. 98 consistent with the mechanized ton. (before base steel credits). The breakdown of estimated unit prices consistent with prevailing prices is as follows:
Average LOM PEA unit consistent with 2022 costs (USD consistent with mechanized ton)
Economic Analysis
An economic assessment of the baseline case conducted by incorporating 3-year old averages for gold, copper, and silver values as of June 20, 2022. This technique is used because it is consistent with the PFS 2022 reference case. The value of molybdenum is determined in a recent examination for a number one allocation of molybdenum. Two choice cases are also presented: (i) a choice case that incorporates steel values lower than those used in the reference case to demonstrate the sensitivity of the assignment to lower values; and (ii) a recent spot situation incorporating recent spot values of gold, copper, silver and the US$/C$ exchange rate. The estimated before and after tax results in U. S. dollars for all 3 are as follows:
PEA 2022 Projected Economic Results (USD)
Note :
Neither Technical Report 43-101 will come with sensitivity analyses illustrating the effect on labor economy of positive and negative adjustments in steel prices, capital costs, and operating costs.
Disclosure of National Instrument 43-101 The KSM PEA 2022 is ready through Tetra Tech and incorporates paints from several industry-leading consulting firms. These corporations and their qualified individuals (as explained through National Instrument 43-101) are independent of Seabridge and have reviewed and approved this press release. The main experts who contributed to the PEA 2022 and their Qualified Persons are indexed below with their areas of responsibility:
Seabridge has a one hundred percent stake in several North American gold allocations. Seabridge’s assets include the KSM and Iskut assignments located in northwestern British Columbia, Canada’s “Golden Triangle,” the Courageous Lake assignment located in Canada’s Northwest Territories, the Snowstorm assignment in the Getchell gold belt in northern Nevada, and the 3 Aces assignment located in Yukon Territory. For a complete breakdown of Seabridge’s mineral reserves and mineral resources by category, visit the company’s online page in http://www. seabridgegold. COM.
Neither the Toronto Stock Exchange, nor the New York Stock Exchange, nor their regulatory service providers are satisfied with the duty of adequacy or accuracy of this release.
All reserve and resource estimates submitted through the Company have been estimated in accordance with National Instrument 43-101 and the definition criteria of the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”). The U. S. Securities and Exchange Commission (“SEC”) now recognizes estimates of “Measured Mineral Resources,” “Indicated Mineral Resources,” and “Inferred Mineral Resources” and uses new definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” that substantially conform to the corresponding CIM definition criteria. However, the criteria for defining CISM differ from the needs applicable to U. S. issuers. U. S. investors are cautioned not to assume that the “measured mineral resources,” “indicated mineral resources,” or “inferred mineral resources” reported through the Issuer are or will be economically or legally exploitable. In addition, “Inferred Mineral Resource” is that component of a Mineral Resource for which the quantity and grade are estimated based on limited geological evidence and sampling. Mineral Resources that are not Mineral Reserves have no proven economic viability.
This document includes “forward-looking configuration” within the meaning of Canadian securities legislation and “forward-looking” within the meaning of the United States Private Securities Litigation Reform Act of 1995. the date of this document. Forward-looking statements relate to long-term events or long-term prospects and reflect existing estimates, forecasts, expectations or ideals relating to long-term events and include, but are not limited to, events relating to: (i) estimated amount and extent of Resources minerals; (ii) estimates of capital prices and schedule for the structure of services for the future expansion of the mine and the putting into production of more mining spaces; Arrange the operation of said mine, the maintenance capital and the duration of the capital reimbursement periods; (iii) the estimated amount of long-term production of either processed ore and recovered steel, (iv) estimates of operating prices, life of mine prices, net cash flows, net price (NPV) and the economic yields of an operating mine; (v) estimates of the acceleration, production and deceleration rates of the sinking of the block; (vi) the assumptions on which the various estimates are made are reasonable; and (vii) projections of a significant long-term deficit of mined copper. Anyone who expresses or implies discussion relating to predictions, expectations, ideals, plans, projections, goals, or long-term prospects or occasions (often, but not always, using words or words such as “s ‘expects’, ‘anticipates’, ‘ plans’, ‘projects’, ‘estimates’, ‘intends’, ‘supposes’, ‘intends’, ‘strategy’, ‘goals’, ‘objectives’ or diversifications thereof or indicating that certain actions, occasions or effects “possibly ” , “could”, “would”, “might” or “will” be taken, will happen or be achieved, or the negative form of any of those similar terms and expressions) are not old facts and would possibly be forward-looking s.
All forward-looking statements are based on Seabridge’s or its experts’ existing ideals and various assumptions made by them and existing data held by them. The maximum vital assumptions are set forth above, but those assumptions include: (i) the presence and continuity of steels in the Project at estimated grades; (ii) the geotechnical and iron and steel characteristics of the rock consistent with the results of the sample; (iii) the quantities of water and the quality of the water that must be diverted or treated in mining operations; (iv) the capabilities and durability of the various machines and devices; (v) availability of personnel, machinery, devices and hydroelectric power at estimated costs and within estimated delivery times; (v) exchange rates; (vi) steel promotion costs; (vii) adequate reduction rates implemented to the money flows in the economic analysis; (viii) tax rates and royalty rates applicable to the proposed mining operation; (ix) the availability of compatible financing according to the scheme and assumed costs; (ix) expected mining losses and dilution; (x) steelmaking performance; (xi) moderate emergency requirements; (xii) good luck in meeting the proposed operating and distribution schedules; (xiii) receipt of entry permits and other regulatory approvals on compatible terms; and (xiv) the successful conclusion of consultation with affected Aboriginal groups. While the control considers those assumptions to be conservative based on existing data, they may turn out to be incorrect. Many forward-looking statements are made assuming the accuracy of other forward-looking statements, such as net supply price statements and internal rates of return, which are based on most other forward-looking statements and assumptions contained in this document. Cost data is also ready using supply costs, but the timing of cost incurrence will be long-term and costs (and steel costs) are assumed to remain robust over the applicable period.
By their very nature, forward-looking statements involve inherent threats and uncertainties, either general or specific, and there are threats that estimates, forecasts, allocations and other forward-looking statements will not come true or that assumptions may not be reflected in the long term. term. experience. We caution readers not to place undue reliance on such forward-looking statements, as a number of vital points may also cause actual effects to differ slightly from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such statements. . forward-looking statements. statements. These threat points can be broadly explained as the threat that the assumptions and estimates expressed above may not happen as expected, but in particular include, but are not limited to: threats related to diversifications in the mineral content in the mantle known as mineral reserves or mineral resources of this forecast; diversifications in recovery and extraction rates; the geotechnical characteristics of the rock mined or on which the infrastructure is built differ from those anticipated, the amount of water to be diverted or treated during mining operations is different from that expected during mining operations or after closure, or the water flow is another; progressions in world metals markets; threats similar to fluctuations in the Canadian dollar against the US dollar; increases in estimated capital and operating prices or unanticipated prices; difficulties in attracting compulsory labor; unavailability of hydraulic power and similar threats to the prices of other power sources; increases in the financing prices or adverse adjustments in the terms of the financing to be obtained, if any; tax or royalty rates are higher than expected; adjustments in progression or mining plans due to adjustments in logistical, technical or other points; adjustments to allocation parameters as plans continue to be refined; relevant threats to receiving regulatory approvals or concluding successful consultation with indigenous groups ed; adjustments in the regulations applicable to the progression, operation and closure of mining operations of what recently exists; the effects of the festival on the markets in which Seabridge operates; operational and infrastructure threats and other threats described in Seabridge’s Annual Information Form filed on SEDAR in Canada (available at www. sedar. com) for the year ended December 31, 2021 and in Annual Report Form 40 – F of the company registered in the United States. Securities and Exchange Commission on EDGAR (available at www. sec. gov/edgar. shtml). Seabridge cautions that the above list of items that may also have long-term effects is not exhaustive.
By relying on our forward-looking statements to make decisions regarding Seabridge, investors and others deserve to be conscientiously aware of the above points and other potential uncertainties and events. Seabridge assumes no legal responsibility to update forward-looking statements, written or oral, that may be made from time to time through Seabridge or on our behalf, unless required to do so by law.
ON BEHALF OF THE COUNCIL”Rudi Fronk”President and C. E. O.
For more information, please contact: Rudi P. Fronk, President and Chief Executive Officer Tel: (416) 367-9292 • Fax: (416) 367-2711 Email: info@seabridgegold. com
KSM mineral resources (including previously known mineral reserves)
Measured resources
Resources indicated
Measured resources and indicated resources
Inferred resources
Note :
Note: U. S. investors are cautioned that the requirements and terminology of NI 43-101 may differ from SEC requirements, adding REGULATION SK-1300. Accordingly, the data provided by the Issuer in relation to mineralization may not be comparable with the data provided by the corporations. subject to the SEC’s mining disclosure standards. Mineral resources are reported by adding mineral reserves. Mineral resources that are not mineral reserves have not demonstrated their economic viability. It is moderate to expect that most inferred mineral resources can be converted into indicated mineral resources. with continuous exploration.
To view the original edition of this press release, visit https://www. newsfilecorp. com/release/132630