Name of the Project
KSM gold/copper project.

Location
The project is located in British Columbia, Canada.

Project Owner/s
Seabridge Gold.

Project Description
KSM is the world’s largest undeveloped gold/copper project measured by mineral reserves, which do not include a sizeable inferred mineral resource at the project’s four deposits.

A preliminary economic assessment (PEA) has been undertaken to assess an alternate approach to develop KSM by incorporating the much larger Iron Cap block cave mine – accompanied by smaller openpits – into the production schedule, compared with previous studies, and developing this opportunity much earlier in the project’s mine life.

The PEA envisages a combined openpit and underground block cave mining operation with a 44-year mine life. The operation will capture 19.6-million ounces of gold and 5.4-billion pounds of copper from the measured and indicated categories, plus an additional 20.8-million ounces of gold and 13.8-billion pounds of copper from the inferred category. Openpit mining accounts for one-third of produc­tion while underground mining comprises the balance. Life-of-mine recovered production is estimated at 27.6-million ounces of gold and 17-billion pounds of copper.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $6-billion using base case three-year average price assumptions of $1 340/oz gold, $2.80/lb copper and a foreign exchange rate of $0.76/C$1.00.

The project has a four-year payback.

Capital Expenditure
Initial capital is estimated at $5.2-billion.

Planned Start/End Date
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Seabridge, tel +1 416367 9292 or email info@seabridgegold.net.