Mr. Rudi Fronk reports
SEABRIDGE GOLD TO ACQUIRE GOLDSTORM PROJECT IN NORTHERN NEVADA
Seabridge Gold Inc. has entered into a definitive agreement to acquire a 100-per-cent interest in the Goldstorm project in northern Nevada from Mountain View Gold Corp. for 25,000 Seabridge common shares. Closing of the transaction is subject to the usual terms and conditions and the approval of the applicable stock exchanges.
The Goldstorm property comprises 134 mining claims and 1,160 leased acres (totalling approximately 3,900 acres or 15.9 square kilometres) located about three kilometres to the east of Seabridge's 100-per-cent-owned Snowstorm property. Snowstorm's 80.3 square kilometres of landholdings are strategically located at the projected intersection of three of the most important gold trends in northern Nevada: the Carlin trend, the Getchell trend and the Northern Nevada Rift zone. Snowstorm is contiguous and on strike with several large, successful gold producers, including Getchell/Turquoise Ridge and Twin Creeks in the Barrick-Newmont Nevada joint venture and Hecla Mining's' Midas operations.
Goldstorm is in the Northern Nevada Rift (NNR), a geologic feature hosting many high-grade gold-silver mines. This mineral trend is a discrete five-kilometre-wide to 30-kilometre-wide linear magnetic high, which trends 340 degrees for more than 500 kilometres. The NNR is characterized by mafic and felsic volcanic centres associated with crustal extensions between 15 million and 16.5 million years old.
Deposits in the NNR are low-sulphidation high-grade epithermal deposits with elevated gold:silver ratios, generally containing around one million to five million ounces of gold. Examples of such deposits in Nevada include Midas, Hollister and Fire Creek. Vein-filled faults are a common style of ore host, typically containing bonanza-grade gold and silver. Gold and silver deposition in these veins can reach 500 metres of vertical extent.
Goldstorm has had limited exploration to date. Previous operators identified a series of northwest-trending veins that showed strong pathfinder geochemistry and highly anomalous gold results. A surface trench on one of these veins yielded three metres of nine grams per tonne (g/t) gold and 44 g/t silver. Mountain View's limited drill testing of this vein returned promising grades, including an intersection of two metres assaying 5.50 g/t gold of which one metre graded 9.29 g/t gold and 73 g/t silver.
Seabridge's chairman and chief executive officer, Rudi Fronk, noted that the Goldstorm acquisition provides potentially valuable targets of its own, as well as insights into the Northern Nevada Rift targets on the east side of the Snowstorm property. "Snowstorm is a very valuable exploration asset for us and it will be a primary focus for our exploration team this year, including our first drill program on the project, expected to begin later this summer. In preparation, we have staked additional claims where available. The Goldstorm purchase fits our strategy of expanding our footprint in these highly prospective gold trends where we intend to be a significant player."
Exploration on the Snowstorm project is being supervised by William Threlkeld, a senior vice-president of the company and a qualified person as defined in National Instrument 43-101. Mr. Threlkeld has reviewed and approved the technical discussion in this news release.
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.
All reserve and resource estimates reported by the corporation were calculated in accordance with the Canadian NI 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.
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