Name of the Project
KSM gold/copper project.

Location
British Columbia, in Canada.

Project Owner/s
Seabridge Gold.

Project Description
KSM is the world’s biggest undeveloped gold/copper project measured by mineral reserves, which does 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
The results of a 2021 drill programme have bolstered Seabridge Gold’s confidence in the Snowfield deposit, acquired in 2020, to support a reshaping of the KSM mining project.

Geological modelling of the drill results show the Snowfield deposit is the upper part of the Mitchell deposit, with essentially identical controls on metal distribution and complementary metallurgy, allowing for a combined surface mining scenario for initial production at KSM.

Seabridge chairperson and CEO Rudi Fronk has said the Snowfield deposit would likely enhance gold reserves, projected yearly gold production and payback while deferring capital expenditure associated with block-cave development.

Approval is expected late in the second quarter, when a new KSM preliminary feasibility study is scheduled for completion.

To avoid confusion going forward, the Snowfield deposit will now be referred to as the East Mitchell deposit.

Key Contracts, Suppliers and Consultants
None stated.

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