Seabridge Gold Flags KSM JV Progress, 72-Year Mine Potential at Denver Gold Forum

Key Points

• KSM could support a 72-year mine life: Seabridge’s 2022 pre-feasibility study outlined 33 years of production with reserves of 47 million ounces of gold and 7.3 billion pounds of copper; a later assessment of the Kerr and Iron Cap deposits added 39 potential years.
• Joint-venture discussions are advancing: Seabridge has invested more than CAD 650 million in KSM site development and is negotiating with a preferred partner, with a joint announcement expected in the near future.
• Regulatory and development work continues: A British Columbia court upheld KSM’s substantially started designation while ordering further consultation with an Indigenous group. Seabridge is also shifting toward an all-open-pit mine plan and continuing exploration at its nearby Bronson Corridor project.

Seabridge Gold NYSE: SA outlined progress at its KSM development project in British Columbia, ongoing joint-venture discussions and exploration plans for its broader portfolio during a presentation at the Denver Gold Forum.

The company described itself as focused on building gold ounces in the ground on a per-share basis. The presenter, identified during the question-and-answer session as Ryan, said Seabridge’s ounces in the ground had grown five times faster than its shares outstanding over the company’s 25-year history. He also said the company ranks first among North American-listed companies on a per-share basis for total copper resources and reserves.

Seabridge’s portfolio includes KSM, its advanced-stage project in northwestern British Columbia; Bronson Corridor, located about 20 kilometers northwest of KSM; 3 Aces in Yukon; and Snowstorm in Nevada. The company also said it spun out its Courageous Lake project in June into a new public company, Valor Gold.

KSM Project and Mine Plan

Ryan described KSM, in British Columbia’s Golden Triangle, as the world’s largest undeveloped gold and copper project. Seabridge holds a 100% interest in the project, which has environmental approvals and construction permits, according to the presentation.

The company said KSM benefits from nearby infrastructure, including Highway 37, the Northwest Transmission Line and year-round ice-free ports in Stewart, British Columbia. It has secured an offtake agreement for 245 megawatts of hydropower for the project.

KSM includes five deposits containing what the company called 15 billion tonnes of economic resource. Its approved tailings management facility covers the first 2.3 billion tonnes. Seabridge’s 2022 pre-feasibility study focused on the highest-value portion of that material and outlined proven and probable reserves of:

• 47 million ounces of gold;
• 7.3 billion pounds of copper; and
• 160 million ounces of silver.

The 2022 study contemplated an initial 33-year mine life, with average annual production of 1 million ounces of gold, 200 million pounds of copper and 3 million ounces of silver. Ryan said the study estimated all-in sustaining costs of CAD 600 per ounce of gold, net of byproducts, and initial capital costs of CAD 6.4 billion.

He added that the pre-feasibility mine plan captures about 20% of KSM’s economic resource. A preliminary economic assessment considering Kerr and Iron Cap, two deposits not included in the pre-feasibility study, added a further 39 years to the mine life for a potential total of 72 years. That assessment was more copper-focused, while the pre-feasibility study was more gold-centric, he said.

Partner Discussions and Regulatory Review

Seabridge said it has invested more than CAD 650 million in KSM site development and is pursuing a joint-venture agreement with a preferred partner. Ryan said discussions were under way across commercial, technical, construction, permitting, regulatory and social-affairs matters. The company expects to make a joint announcement “in the near future,” he said.

The company also addressed legal challenges related to KSM’s substantially started designation. Ryan said two petitions had been filed in British Columbia court: one by the Tsetsaut Skii km Lax Ha and another by two nongovernmental organizations.

According to the presentation, the court on June 8 upheld the reasonableness of the designation and dismissed the NGO petition. The court directed the province to consult with the Tsetsaut Skii km Lax Ha, giving it 90 days to submit written materials on whether the project had been substantially started as of July 24, 2024. Ryan said that window concluded Sept. 28, after which British Columbia’s Environmental Assessment Office would reconsider the designation. Seabridge remains confident the 2024 decision will be upheld, he said.

Site work since 2021 has included camps supporting about 400 personnel this year, water-management infrastructure, more than 30 kilometers of permanent access roads, fish habitat offsetting work and permanent bridge installations. The company plans to build another 30 kilometers of roads in coming years.

Open-Pit Approach and Exploration Pipeline

In response to a question about surface subsidence, Ryan said Seabridge has removed block-caving plans for Kerr and Iron Cap. The 2022 pre-feasibility study shifted those deposits to open-pit concepts, and the company intends to approach all five deposits as open-pit operations in a future feasibility study.

At the early-stage Bronson Corridor project, Seabridge said it continues to evaluate Snip North and has identified three additional targets. The company expects to follow up on those targets in 2027, subject to final data and analysis from this year’s field program.

Ryan said Snip North and the Bronson Slope resource represent two identified deposits in the Bronson Corridor package. Seabridge sees geological similarities between the area and KSM, particularly gold-copper porphyry systems. While the properties are about 20 kilometers apart and are not viewed as part of KSM itself, Ryan said a future partner could potentially consider both projects as part of a longer-term district pipeline.

He said further clarity on KSM capital expenditures would come through a feasibility study. Seabridge expects to begin at a selected throughput rate while preserving the potential for an expansion in years three through six, including an additional SAG line to raise nameplate capacity.

About Seabridge Gold (NYSE:SA)

Seabridge Gold Inc is a Canadian mineral exploration and development company focused on advancing large-scale gold and copper projects in North America. The company does not operate producing mines; its activities center on acquiring, exploring, evaluating and permitting mineral properties.

Seabridge's principal asset is the KSM project in northwestern British Columbia, a large undeveloped gold, copper, silver and molybdenum project. The company also holds interests in the Iskut project in British Columbia, the Courageous Lake project in Canada's Northwest Territories, and the Snowstorm project in Nevada.

Founded in 1999, Seabridge Gold is headquartered in Toronto, Canada, and its shares trade on the New York Stock Exchange under the symbol SA and on the Toronto Stock Exchange under the symbol SEA.

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