Seabridge Drilling Confirms Integrating KSM’s Mitchell and Snowfield Deposits New PFS Combining Snowfield and Mitchell Expected Next Quarter
106 Front Street East, Suite 400, Toronto, ON M5A 1E1, Canada
416-367-9292 www.seabridgegold.com
News Release
Trading Symbols: TSX: SEA FOR IMMEDIATE RELEASE
NYSE: SA February 1, 2022
Seabridge Drilling Confirms Integrating KSM’s Mitchell and Snowfield Deposits
New PFS Combining Snowfield and Mitchell Expected Next Quarter
Toronto, Canada… Seabridge Gold (TSX: SEA) (NYSE: SA) announced today that further drill results from
the 2021 drill program have validated the integration of the Snowfield deposit into the KSM mine plan.
Geological modeling of these results show the Snowfield deposit is the upper part of the Mitchell
deposit with essentially identical controls on metal distribution and complementary metallurgy,
enabling a combined surface mining scenario for initial production at KSM.
Seabridge Chairman and CEO Rudi Fronk commented: “The critical objective for our 2021 drill program
at KSM was to demonstrate the ability to merge our Snowfield deposit into the greater KSM P roject.
This objective was met and o ur confidence is now very high that the Snowfield deposit, acquired by
Seabridge in 2020, will support a reshaping of the project which is likely to enhance gold reserves,
projected annual gold production and payback while also deferring capital expenditures associated
with block-cave development . Affirmation is expected late in the second quarter when a new KSM
Preliminary Feasibility Study (“PFS”) is scheduled for completion. To avoid confusion going forward and
better reflect continuity with the Mitchell deposit, we are now referring to the Snowfield deposit as the
East Mitchell deposit.”
The drilling results reported below represent 2,460 meters of the 4,531 meter program completed this
season to confirm model grades , obtain metallurgical sample material and evaluate geotechnical
characteristics for slope determination. Initial observations from these holes were integrated into the
geological model derived from re -logging historical drilling . Assay results have confirmed grade
continuity from the Mitchell deposit for the intrusive hosted mineralization as well as for surrounding
wall rocks.
Drill Hole Assay Results
Drill Hole
ID
Total
Length
(meters)
From
(meters)
To
(meters)
Thickness
(meters)
Gold
Grade
(g/t)
Copper
Grade
(%)
Silver
Grade
(g/t)
Mitchell Deposit
M-21-154 319.6 2.7 319.6 316.9 0.66 0.19 2.9
including 2.7 78.1 75.4 0.89 0.22 3.3
East Mitchell Deposit
SF-21-08
362.1 4.3 362.1 357.8 1.06 0.04 1.4
including 4.3 186.5 182.2 1.70 0.04 1.8
including 34.0 80.0 46.0 2.55 0.05 2.0
SF-21-09 150.5 0.0 150.5 150.5 1.81 0.02 1.3
including 7.5 62.5 55.0 2.89 0.02 2.0
SF-21-10 90.4 1.5 90.4 88.9 2.80 0.02 1.8
SF-21-11 90.2 1.6 90.2 88.6 2.64 0.03 2.0
SF-21-12 400.5 0.0 400.5 400.5 0.97 0.20 2.3
including 164.5 219.9 55.4 1.37 0.24 2.4
East Mitchell Geotechnical Holes
SF-21-06 300.4 183.5 210.5 27.0 0.77 0.06 1.2
SF-21-07 595.8 No significant assays
SF-21-13 150.6 3.9 73.3 69.4 0.58 0.05 0.9
and 98.1 114.9 16.8 0.47 0.04 1.0
The drill holes were designed to cut perpendicularly to mineralized zones. Some of the holes were only
intended to evaluate shallow portions of the zone and were not completed through the mineralization.
Intervals listed above are fractional intersections of entire ore zones and i t is believed that these
intervals are accurate representations of parts of a mineralized zone.
Understanding the relationship between Mitchell and East Mitchell provides several synergies for
progressing an updated resource estimation for incorporation into the updated PFS. Block dimensions
will be consistent between these deposits and search strategies for populating grade blocks will be
more similar than in the past. Confirming the relationship between Mitchell and East Mitchell deposits
has identified a nearly 3 -kilometer vertical exposure of a giant gold -copper porphyry system. This has
permitted a better understanding of the vertical zonation of metals and hydrothermal alteration in the
KSM Project.
Exploration activities by Seabridge at the KSM Project are conducted under the supervision of William
E. Threlkeld, Registered Professional Geologist, Senior Vice President of the Company and a Qualified
Person as defined by National Instrument 43 -101. Mr. Threlkeld has reviewed and approved this news
release. An ongoing and rigorous quality control/quality assurance protocol is employed in all
Seabridge drilling campaigns. The sampling program includes blank, duplicates and reference
standards, with all co pper assays that exceed 0.25% Cu re- analyzed using ore grade analytical
techniques. Cross-check analyses are conducted at a second external laboratory on at least 10% of the
drill samples.
Seabridge holds a 100% interest in several North American gold projects. Seabridge's assets include the
KSM and Iskut projects located near Stewart, British Columbia, Canada, the Courageous Lake project
located in Canada's Northwest Territories, the Snowstorm project in the Getchell Gold Belt of Northern
Nevada and the 3 Aces project set in the Yukon Territory. For a full breakdown of Seabridge's mineral
reserves and mineral resources by category please visit the Company's website at
www.seabridgegold.com.
None of the Toronto Stock Exchange, New York Stock Exchange, or their Regulation Services Providers
accepts responsibility for the adequacy or accuracy of this release.
All reserve and resource estimates reported by the Corporation were calculated in accordance with the Canadian
National Instrument 43 -101 and the Canadian Institute of Mining and Metallurgy Classification system. These
standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral
resources which are not mineral reserves do not have demonstrated economic viability.
This document contains "forward-looking information" within the meaning of Canadian securities legislation and
“forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of
1995. This information and these statements, referred to herein as “forward -looking statements” are made as of
the date of this document. Forward-looking statements relate to future events or future performance and reflect
current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to,
statements with respect to: (i) the integration of the Snowfield deposit into the KSM Project being likely to enhance
gold reserves and projected annual gold production and payback while also deferring capital expenditures
associated with block -cave development ; (ii) the timing of completion of a new KSM PFS and its potential to
confirm the expected improvements to the KSM Project described herein, and (iii) the reported drill intersections
being perpendicular to strike . Any statements that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives or future events or performance ( often, but not always, using
words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “envisages”, “assumes”, “intends”,
“strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar
expressions) are not statements of historical fact and may be forward-looking statements.
All forward -looking statements are base d on Seabridge's or its consultants' current beliefs as well as various
assumptions made by them and information currently available to them. The most significant assumptions are
set forth above, but generally these assumptions include: (i) the presence of and continuity of metals at the Project
at estimated grades; (ii) the geotechnical and metallurgical characteristics of rock conforming to sampled results;
including the quantities of water and the quality of the water that must be diverted or treated dur ing mining
operations; (iii) the capacities and durability of various machinery and equipment; (iv) the availability of personnel,
machinery and equipment at estimated prices and within the estimated delivery times; (v) currency exchange
rates; (vi) metals sales prices; (vii) appropriate discount rates applied to the cash flows in the economic analysis;
(viii) tax rates and royalty rates applicable to the proposed mining operation; (ix) the availability of acceptable
financing under assumed structure and co sts; (ix) anticipated mining losses and dilution; (x) metallurgical
performance; (xi) reasonable contingency requirements; (xii) success in realizing proposed operations; (xiii) receipt
of permits and other regulatory approvals on acceptable terms; and (xiv) the successful conclusion of consultation
with impacted Treaty and First Nations groups. Although management considers these assumptions to be
reasonable based on information currently available to it, they may prove to be incorrect. Many forward- looking
statements are made assuming the correctness of other forward-looking statements, such as statements of net
present value and internal rates of return, which are based on most of the other forward-looking statements and
assumptions herein. The cost infor mation is also prepared using current values, but the time for incurring the
costs will be in the future and it is assumed costs will remain stable over the relevant period.
By their very nature, forward -looking statements involve inherent risks and uncert ainties, both general and
specific, and risks exist that estimates, forecasts, projections and other forward -looking statements will not be
achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance
on these forward-looking statements as a number of important factors could cause the actual outcomes to differ
materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions
expressed in such forward -looking statements. These risk factors may be generally stated as the risk that the
assumptions and estimates expressed above do not occur as forecast, but specifically include, without limitation:
risks relating to variations in the mineral content within the materi al identified as mineral reserves or mineral
resources from that predicted; variations in rates of recovery and extraction; the geotechnical characteristics of
the rock mined or through which infrastructure is built differing from that predicted, the quantity of water that
will need to be diverted or treated during mining operations being different from what is expected to be
encountered during mining operations or post closure, or the rate of flow of the water being different;
developments in world metals markets; risks relating to fluctuations in the Canadian dollar relative to the US
dollar; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the
necessary work force; increases in financing costs or adver se changes to the terms of available financing, if any;
tax rates or royalties being greater than assumed; changes in development or mining plans due to changes in
logistical, technical or other factors; changes in project parameters as plans continue to be refined; risks relating
to receipt of regulatory approvals or the conclusion of successful consultation with impacted First Nations groups;
changes in regulations applying to the development, operation, and closure of mining operations from what
currently exists; the effects of competition in the markets in which Seabridge operates; operational and
infrastructure risks and the additional risks described in Seabridge's Annual Information Form filed with SEDAR
in Canada (available at www.sedar.com ) for the year ended December 31, 2020 and in the Corporation’s Annual
Report Form 40 -F filed with the U.S. Securities and Exchange Commission on EDGAR (available at
www.sec.gov/edgar.shtml). Seabridge cautions that the foregoing list of factors that may affect future results is
not exhaustive.
When relying on our forward -looking statements to make decisions with respect to Seabridge, investors and
others should carefully consider the foregoing factors and other uncertainties and potential events. Seabridge
does not undertake to update any forward -looking statement, whether written or oral, that may be made from
time to time by Seabridge or on our behalf, except as required by law.
ON BEHALF OF THE BOARD
"Rudi Fronk"
Chairman & C.E.O.
For further information please contact:
Rudi P. Fronk, Chairman and C.E.O.
Tel: (416) 367-9292 • Fax: (416) 367-2711
Email: [email protected]