-- Posted Monday, 28 January 2013 | | Disqus
Trading Symbols:
TSX: SEA
NYSE: SA
Seabridge Gold today provided to GoldSeek its corporate report card for 2012. Every year, the Company sets out its objectives in its annual report and then tallies up the results at year-end.
Chairman and CEO Rudi Fronk noted that “we believe a key obligation of good corporate governance is telling our shareholders how we plan to spend their money and then reporting to them on what we have accomplished. Seabridge began 2012 with six main objectives and a budget of nearly $54 million. We fully achieved four of these objectives, one will be met at the end of this month and one remains open as it depends upon an improvement in market conditions. Exploration was especially successful with three major discoveries during the year.”
The six objectives and their results are as follows:
● Complete a Preliminary Feasibility Study (“PFS”) at Courageous Lake, thereby defining the project’s first proven and probable reserves.
A PFS was completed in July, 2012, estimating proven and probable reserves of 6.5 million ounces of gold, an average annual production of 385,000 ounces at an average cost of $780 per ounce and a mine life of 15 years.
● Update the KSM PFS by incorporating enhanced engineering and design changes.
An updated PFS was released in May, 2012 reporting reserves of 38.2 million ounces of gold, 9.9 billion pounds of copper, 191 million ounces of silver and 213 million pounds of molybdenum. The new PFS included engineering changes designed to increase the production rate, facilitate permitting and enhance economics. NPVs, IRRs and capital paybacks substantially improved over the 2011 PFS. Base case life of mine cash operating costs fell significantly to $141 per ounce of gold produced.
● Drill three new exploration targets at Courageous Lake and conduct geophysical programs over the 53 kilometer greenstone belt.
Three targets (North CL, West CL and Walsh Lake) were drilled during 2012. Walsh Lake proved to be a new discovery with intercepts above one ounce of gold per tonne. This deposit could significantly enhance Courageous Lake’s economics.
● Explore for potential high-grade core zones on our KSM property which have the potential to deliver a large deposit with grades significantly above current reserves.
Of the targets drilled in 2012, Deep Kerr, Iron Cap and McQuillen hold the most promise for finding a high-grade core. Hole K-21 into the Deep Kerr target discovered 473 meters of almost 1% copper with mineralization showing the markers of a potential core. In addition, a near surface epithermal zone was discovered (the Camp Zone).
● Complete KSM’s Environmental Assessment Application for submission to the federal and provincial regulatory authorities, Treaty and First Nations and the general public.
This objective has not been met. We are now scheduled to complete and submit the EA application in late January, 2013.
● When market conditions improve, advance KSM joint venture discussions with senior companies that have the technical and financial resources to build and operate the project.
Market conditions have continued to deteriorate for large, high capital cost projects over the past year. However, major companies need major projects to maintain their production levels, especially projects with long mine lives. We are confident that the successful submission of the EA application and delineation of new, higher-grade resources will facilitate a favorable joint venture when market conditions are more positive.
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-- Posted Monday, 28 January 2013 | Digg This Article
| Source: GoldSeek.com
