Name of the Project
KSM gold/copper/silver project.

Location
Northern British Columbia, Canada.

Client
Seabridge Gold.

Project Description
An updated preliminary feasibility study (PFS) on KSM incorporates many design improvements over the 2012 PFS and the updated financial projections confirm that KSM is an economic project at current metal prices.

The 2016 PFS envisages a combined openpit/underground block caving mining operation, with a mine life of 53 years.

During the first 33 years of mine life, the bulk of the ore will be derived from openpit mines, with the tail end of this period supplemented by the initial development of underground block cave mines.

Ore delivery to the mill during Year 2 to Year 35 is designed to be maintained at an average of 130 000 t/d.

After depletion of the openpits, the mill processing rate will be reduced to 95 000 t/d for ten additional years before ramping down to just over 60 000 t/d for the remaining few years of stockpile reclaim at the end of the mine life.

Over the entire 53-year mine life, ore will be fed to a flotation and gold extraction mill.

The flotation plant will produce a gold/copper/silver concentrate for transport by truck to a nearby seaport at Stewart, British Columbia, for shipment to Pacific Rim smelters.

Extensive metallurgical testing has confirmed that KSM can produce a clean concentrate, with an average copper grade of 25% with a high gold and silver content, making it readily saleable.

A separate molybdenum concentrate and gold/silver doré will be produced at the KSM processing facility.

Total proven and probable reserves at KSM as at July 31, 2016, were 2.2-million tonnes grading 0.55 g/t gold, 0.21% copper, 2.6 g/t silver and 42 parts per million molybdenum.

The 2016 PFS results do not include material from recent higher-grade discoveries at Deep Kerr and Iron Cap Lower Zone, which are expected to have a positive impact on project economics. An analysis of the integration of these deposits into the proposed project design will be included as a preliminary economic assessment forming part of the National Instrument 43-101 technical report.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at a 5% discount rate, of $1.5-billion in the base case, and an internal rate of return of 10.4%, with a payback of six years.

Value
The capital cost of the project is estimated at $5-billion, including contingency of $671-million and preproduction mining costs.

This is about 12% lower than the initial capital estimate in the 2012 PFS.

Duration
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Seabridge Gold, tel + 1 416 367 9292, fax +1 416 367 2711 or email info@seabridgegold.net.