Seabridge Gold Completes Updated PFS for Its KSM Project, B.C.
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Seabridge Gold Inc. has completed an updated preliminary feasibility study (2016 PFS) for its 100 percent owned KSM project located in northern British Columbia, Canada. The 2016 PFS incorporates many design improvements over the 2012 PFS and the updated financial projections confirm that KSM is an economic project at current metal prices.
The 2016 PFS was prepared by Tetra Tech, Inc., the firm that had also authored the 2012 PFS. The 2016 PFS results released do not include material from recent higher-grade discoveries at Deep Kerr and Iron Cap Lower Zone which are expected to have a positive impact on project economics. An analysis of the integration of these deposits into the proposed project design will be included as a preliminary economic assessment (PEA) forming part of the NI 43-101 Technical Report. Results of this PEA level analysis will be finalized and released soon.
As background, in 2012 Seabridge completed a preliminary feasibility study that was used as the basis for submitting its application for an environmental assessment. The KSM Project received its environmental assessment approvals from the provincial and federal governments in July and December 2014, respectively. The approvals were granted after a rigorous joint harmonized federal-provincial EA review and both decisions concluded that the KSM Project would not result in significant adverse effects. Subsequent to the 2012 PFS, Seabridge continued exploration activities at KSM which led to the discovery of the higher-grade Deep Kerr and Lower Iron Cap deposits.
The 2016 PFS has answered a number of important questions about KSM. “Projected capital costs are down despite substantial enhancements to meet environmental improvements we committed to in the EA process. Gold and copper reserves are up slightly despite lower metal prices. Base case estimated total cost, at US$673 per ounce of gold produced, remains well below the industry average for operating mines. The base case after tax payback period is approximately 6.8 years, a remarkably low 13 percent of the 53 year mine life and a key benefit to large producers. Overall, the 2016 PFS confirms that KSM is an economic project with an unusually long life in a low risk jurisdiction,” said Rudi Fronk, chairman and CEO of Seabridge Gold.
To read more details in the company’s press release, CLICK HERE
About Seabridge
Seabridge Gold holds a 100 percent interest in several North American gold resource projects. The company’s principal assets are the KSM property located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada’s Northwest Territories.
To stop by Seabridge’s website, CLICK HERE
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