12:59:54 EDT Tue 21 May 2019
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Seabridge Gold Inc
Symbol C : SEA
Shares Issued 61,582,572
Close 2019-03-12 C$ 18.70
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Seabridge releases NI 43-101 estimate for Iron Cap

2019-03-12 07:59 ET - News Release

Mr. Rudi Fronk reports


An updated independent mineral resource estimate for Seabridge Gold Inc.'s Iron Cap deposit has substantially increased its size while also confirming higher-grade zones within the overall resource. Iron Cap is one of four large gold/copper porphyry deposits within Seabridge's 100-per-cent-owned KSM project located in northwestern British Columbia. The updated resource estimate, dated as of March 7, 2019, incorporates all previous drilling plus 20,341 metres of diamond core drilling completed in 18 holes during the 2018 program.

A comparison of the previous Iron Cap resource estimate and the updated one is shown in the associated table.


Date of          Resource     Tonnes
estimate         category (millions)            Average grades                       Contained metal
                                       Gold  Copper  Silver   Moly      Gold       Copper     Silver         Moly
                                      (g/t)     (%)   (g/t)  (ppm)  (000 oz) (million lb)   (000 oz) (million lb)

February, 2018  indicated        370   0.43    0.23     4.2     48     5,112        1,874     49,931           39
                 inferred      1,297   0.48    0.30     2.9     34    20,023        8,579    120,970           34
March, 2019     indicated        423   0.41    0.22     4.6     41     5,576        2,051     62,559           38
                 inferred      1,899   0.45    0.30     2.6     30    27,474       12,556    158,741          126
Mineral resources which are not mineral reserves do not have demonstrated economic viability. Drill hole spacing 
in the 2018 program was designed to meet two objectives: expand the known size of the Iron Cap deposit while 
also meeting the requirements of an inferred resource estimate. Based on the relatively consistent nature of the 
deposit along with geologic evidence amassed over the last 14 years of exploration work at the project and the
current drill hole spacing at Iron Cap, the company believes it is reasonable to expect that the majority of 
inferred mineral resources could be upgraded to indicated mineral resources with further drilling.

Seabridge chairman and chief executive officer Rudi Fronk noted that the new resource estimate has achieved the targeted size and grade which are likely to warrant moving the Iron Cap deposit ahead of the Kerr and Sulphurets deposits in the project's mine plan: "Our exploration success at Iron Cap over the past two years gives us greater flexibility to optimize project economics. Iron Cap is closer to infrastructure than Kerr and Sulphurets and its development could be faster and less costly. Within the 1.9 billion tonnes of inferred resource, there exist significantly higher-grade underground cave opportunities with substantial tonnage. Iron Cap clearly has the size and grade to justify early inclusion in the mining sequence. From our point of view, this is mission accomplished."

Mr. Fronk also noted that: "These resource additions once again have met our annual corporate objective of increasing gold ownership on a per-share basis. We added 460,000 ounces of indicated gold resources and 7.5 million ounces of inferred gold resources from our 2018 program. In 2018, our shares outstanding increased by approximately 3.6 million shares resulting from new financings to fund our programs plus other share issuances. Enhancing shareholder ownership of gold resources remains a governing principle for our company and 2018 marks another successful year in achieving this self-imposed discipline."

Gold, copper, silver and molybdenum grades in the resource were estimated by Resource Modeling Inc. (RMI) using ordinary kriging methods. Independently designed gold, copper, silver and molybdenum grade envelopes along with lithologic wireframes provided the key constraints in the grade estimation plan. The grade envelopes were designed using drill hole grades and an updated structural and lithologic model that have been developed for the Iron Cap deposit. A multipass ordinary kriging estimation plan was developed using steeply oriented search ellipses to select eligible composites for block grade estimation based on updated variography studies.

The grade models were validated visually and by comparisons with nearest-neighbour grade models. The drill hole database that was used for the estimate of the Iron Cap mineral resources consisted of data collected almost exclusively by Seabridge from 99 drill holes totalling about 67,000 metres of core drilling completed between 2005 and 2018. The entire 2018 electronic drill hole assay database was compared against certified lab assay results by RMI with no errors discovered. RMI also reviewed the quality assurance/quality control protocols and results associated with the Seabridge drilling. Based on the performance of the standard reference materials and secondary laboratory check assay results, RMI believes that the Seabridge drill samples are reproducible and suitable for estimating mineral resources.

Block net smelter return values (NSR values) were calculated by Moose Mountain Technical Services using metal recovery projection formulae developed by Tetra Tech from metallurgical testwork. This NSR value, stated in terms of Canadian dollars, reflects metal prices, a U.S./Canadian currency exchange rate of 0.83, and off-site transportation, smelting and refining charges. The metal recovery estimates were updated using previous and additional testwork completed in 2018.

Iron Cap was treated as a potential block cave (bulk underground) mining target. The lateral and vertical continuity of the zone provides a geometric configuration that is likely to be amenable to this mining method. Seabridge has retained Golder Associates, a leading industry expert in underground mining, to undertake bulk underground mining studies for KSM. Golder used the block model prepared by RMI to establish three separate draw point elevations at an NSR shut-off value of $16, and the conceptual cave footprints at these three elevations were extruded upward by 495 metres and then clipped against one another. Resources within the extruded shapes were tabulated for each of the three hypothetical draw-point elevations using an NSR cut-off value of $16, consistent with the previous updated resource estimate in the company's Feb. 13, 2018, news release. Evaluation of the economic potential of Iron Cap for the purposes of resource estimation was based on metal prices of $3 (U.S.) per pound of copper, $1,300 (U.S.) per ounce of gold, $20 (U.S.) per ounce of silver, $9.70 (U.S.) per pound of molybdenum and a U.S./Canadian exchange rate of 0.83 together with estimated metal recoveries from metallurgical testwork. These metal prices are generally in line with, or lower than, the metal prices used by major mining companies for their current resource disclosure for similar types of projects.

The 2018 drill program at Iron Cap confirmed that the deposit continues downdip and to the northwest. The 2018 drilling results allowed for the expansion of the mineralized system along the hangingwall of the previous interpretation. Within the conceptual cave footprints extruded up 495 metres and clipped against one another, there exist large, higher-grade zones. The associated table compares the undiluted tonnes and grades of the updated Iron Cap resource at higher NSR cut-offs.

NSR cut-off    Resource      Tonnes              Average grades                           Contained metal
($)            category  (millions)    Gold   Copper  Silver    Moly      Gold        Copper     Silver          Moly
                                      (g/t)      (%)   (g/t)   (ppm)  (000 oz)  (million lb)   (000 oz)  (million lb)

$16           indicated         423    0.41     0.22     4.6      41     5,576         2,051     62,559            38
               inferred       1,899    0.45     0.30     2.6      30    27,474        12,556    158,741           126
20            indicated         361    0.44     0.24     4.7      41     5,107         1,910     54,550            33
               inferred       1,675    0.48     0.31     2.6      30    25,849        11,444    140,016           111
24            indicated         274    0.50     0.25     5.1      39     4,405         1,510     44,927            24
               inferred       1,373    0.53     0.34     2.7      30    23,396        10,289    119,186            91
28            indicated         195    0.56     0.27     5.3      34     3,511         1,160     33,228            15
               inferred       1,070    0.59     0.36     2.7      29    20,297         8,490     92,883            68
32            indicated         132    0.64     0.28     5.5      29     2,716           815     23,341             8
               inferred         808    0.67     0.39     2.8      28    17,405         6,945     72,738            50
36            indicated          87    0.72     0.29     5.6      23     2,014           556     15,664             4
               inferred         594    0.75     0.43     2.9      28    14,323         5,629     55,383            37

Resource estimates included herein were prepared by RMI under the direction of Michael Lechner, who is independent of Seabridge and a qualified person as defined by National Instrument 43-101. Mr. Lechner has reviewed and approved this news release.

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. A continuing and rigorous quality control/quality assurance protocol is employed in all Seabridge drilling campaigns. This program includes blank and reference standards; in addition, all copper assays exceeding 0.25 per cent Cu are reanalyzed using ore grade analytical techniques. Random crosscheck analyses are conducted at a second external laboratory on at least 10 per cent of the drill samples. Samples are assayed at ISO- and ASTM-certified laboratories in Vancouver, B.C., using fire assay atomic adsorption methods for gold and ICP methods for other elements.

About Seabridge Gold Inc.

Seabridge Gold holds a 100-per-cent interest in several North American gold resource projects. The company's principal assets are the KSM and Iskut properties, located near Stewart, B.C., Canada, and the Courageous Lake gold project, located in Canada's Northwest Territories. For a breakdown of Seabridge's mineral reserves and resources by project and category please, visit the company's website.

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