Drilling Improving Size and Grade Of Iron Cap Gold-Copper Zone

TORONTO - Seabridge Gold reported that the final three holes drilled in 2013 to test for a high-grade core zone below the Iron Cap deposit have expanded the deposit to the northwest and at depth, adding higher grade material that is likely to have a substantial impact on resources with further drilling. Iron Cap is one of four large porphyry deposits at Seabridge's 100%-owned KSM project in northwestern British Columbia, Canada.

A total of six holes were drilled at Iron Cap this year as part of a program designed to find one or more core zones - the deep-seated parts of porphyry deposits which form in near-magmatic conditions and typically report much higher grades than the broader porphyry stockwork systems surrounding them. In mining districts similar to KSM in size and mineralizing histories such as Oyu Tolgoi, Pebble, Resolution, and Grasberg, major discoveries of near-magmatic core zones have been made below shallow porphyry deposits like Kerr and Iron Cap. During the 2013 field season, a core zone was discovered below the Kerr deposit and drilling was subsequently focused on this area to generate the data for a resource estimate. However, Iron Cap continues to offer significant encouragement for a second core zone discovery.

Chairman and CEO Rudi Fronk said, Last year's drilling success at Iron Cap could have important benefits apart from the possible discovery of a second core zone. Iron Cap is favorably located in the same valley as the crusher; tunnel portal and other key infrastructure, so expanding the size of this deposit should positively impact the overall KSM project. Our KSM mine plan already calls for Iron Cap to be exploited from underground using cost-effective block caving technology. Expanding the deposit at depth, as we did in 2013, fits well with our mine plan and its location in close proximity to the proposed underground haulage tunnel is likely to improve the value of Iron Cap."