Seabridge Gold Inc. (SA)

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Seabridge Gold Finds Extension of KSM's Mitchell Deposit at Depth

Seabridge Gold (NYSE:SA)
Today : Tuesday 28 July 2015

Drilling intersects 174 Meters of 0.55 g/T Gold and 0.28% Copper and 167 Meters of 0.81 g/T Gold and 0.25% Copper 350 Meters Down-Dip from Current Reserve Limit

TORONTO, July 28, 2015 /CNW/ - Seabridge Gold today announced that initial results from its 2015 core drilling program at its 100% owned KSM Project in northwestern British Columbia points towards a sizeable expansion of the Mitchell Deposit at depth. The size and orientation of the drill intercepts support the potential for an expansion of the cost-effective block cave operation planned for the reserves above these new intercepts. Hole M-15-130's 174 meters of 0.55 g/T gold and 0.28% copper is more than 200 meters to the southwest of M-15-131's 167 meters of 0.81 g/T gold and 0.25% copper; these results appear to represent a large, continuous zone amenable to block cave mining. (See www.seabridgegold.net/pdf/NJul28-15-maps.pdf)

In the past two years, Seabridge has successfully targeted higher grade zones beneath KSM's near-surface porphyry deposits, resulting in the discovery of Deep Kerr and the Iron Cap Lower Zone, two copper-rich deposits that have added nearly one billion tonnes of better grade to project resources. The program this year has continued this multi-year exploration effort to add higher grade zones by testing the down plunge extension of the Mitchell Deposit. The Mitchell Deposit is KSM's largest porphyry copper-gold system, containing proven and probable reserves of 1.4 billion tonnes grading 0.60 g/T Au and 0.16% Cu. In the central part of the deposit there is a zone of higher grade gold and copper; the down plunge projection of this central zone was the target for holes M-15-130 and 131. (For a detailed breakdown of KSM's proven and probable reserves please see the table at the end of this release)

Seabridge Chairman and CEO Rudi Fronk commented that "these initial results from Mitchell are very encouraging. The size and grade of the planned Mitchell block cave are likely to be enhanced by this data. Also, the mineralogy and textures from drill core suggest that we are approaching a zone of higher-temperature and fluid flow that may offer even better grades but there is evidence of faulting which needs to be analyzed before we undertake further drilling on this target. Although we are excited about where this discovery could lead, we have decided to scale back this year's Mitchell program by about $2.2 million until we have completed our analysis of all the available data. The balance of the program will concentrate on expanding the block cave shapes associated with the Deep Kerr deposit."

The first two holes in this year's program also encountered a copper zone higher up in the section which could convert waste to ore in Mitchell open pit scenarios which are planned to precede underground block caving. The holes were started well above and outside of the Mitchell Deposit reserve in order to test the deep projection of the central zone. Significant widths of copper mineralization were intersected above the Mitchell Thrust Fault in magnetite-rich intrusive and sedimentary rocks near the contact of an intrusion with intervals up to 192 meters wide grading 0.34% copper and 0.14 g/T gold. This style of copper-rich material has been encountered in previous drilling in this vicinity. "We will evaluate the potential of incorporating these zones into the Mitchell resource," Fronk said. "If we are able to convert in-pit waste to ore, it could have a positive impact on Mitchell economics."

Below the Mitchell Thrust Fault, where the Mitchell reserves and resources are located, the holes encountered identical sections of altered intrusive rocks that are recognized as host to parts of the Mitchell Deposit. The intrusion is pervasively hydrothermally altered and contains abundant stock work quartz veins. Alteration increases systematically down hole, progressing through intense quartz-sericite-pyrite and into chlorite-magnetite-orthoclase alteration. The intervals encountered in holes M-15-130 and 131 represent a distinctive intrusive body containing gold and copper grades above the Mitchell Deposit average.

The following table summarizes the drill hole intersections for the plunge projection of Lower Mitchell. In drill hole M-15-130, the Mitchell Thrust Fault is located at 601 meters and in M-15-131 it is at 691 meters....