Copper   Precious Metals  

Seabridge confirms improved KSM project economics

Seabridge Gold (TSX: SEA, NYSE: SA) has filed an NI-43-101 technical report for its KSM project in northern British Columbia, confirming the potential for a “dramatic improvement” in project economics by incorporating the recently expanded, higher-grade Iron Cap deposit into mine plans as previously highlighted in its preliminary economic assessment (PEA).

The technical report outlines a 44-year mine production plan recovering 19.6 million ounces of gold and 5.4 billion pounds of copper from the measured and indicated categories, plus an additional 20.8 million ounces of gold and 13.8 billion pounds of copper from the inferred category.

Life of mine recovered production would reach 27.6 million ounces of gold and 17 billion pounds of copper, with an average operating cost of $472 per ounce gold produced, net of copper and silver byproduct revenues.

Initial capital cost for the KSM project is estimated at $5.2 billion, with a four-year payback period owing to average annual pre-tax free cash flow of $1.45 billion from 1.3 million ounces of gold and 265 million pounds copper produced per year during the initial five years of production. The after-tax NPV estimate for this project stands at $6 billion.

Chairman and CEO Rudi Fronk noted that the most recent PEA was undertaken to assess an alternate approach to developing KSM by incorporating a much larger Iron Cap block cave mine earlier into the production schedule.

“The benefits of incorporating Iron Cap into mine plans at an early stage have exceeded the upper end of our expectations, not only for the improvements in projected economics but also for the reduction in environmental impact. The PEA is based on Iron Cap’s inferred resource estimate but we are very confident these resources will upgrade to higher categories with further drilling as they have in the past at the project’s other deposits,” Fronk said.

The PEA economic projections, if achieved, would rank KSM among the best large-scale producing mines in the world, he added.

Mike Kozak, an analyst at Cantor Fitzgerald, recently described the PEA as “much-improved” with projected 6% and 35% increases in annual gold and copper production respectively versus the 2016 PEA.

He also noted that the PEA captures about 31% of the total KSM resource and there continues to be upside beyond what was outlined in the updated PEA.

News No: 9437
Date: 2020/05/09 - 22:26
News Source:

silver  copper  gold  KSM  Seabridge Gold 


Leave a Comment:


IMIDRO to revive 50 small copper mines by Mar. 2021

Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) announced that it plans to revive 50 idle small copper mines in the current Iranian calendar year (ends on March 20, 2021), IRNA reported.

Altamira Gold receives new environmental permit to advance Cajueiro project in Brazil

Altamira Gold (TSXV: ALTA) received a second environmental permit required for the trial mining licenses with respect to claim 866.070/2004 for its advanced Cajueiro gold project in Brazil.

Sprott backs Pure Gold with $10.7 million investment

Pure Gold Mining (TSXV:PGM, LSE:PUR) announced on Wednesday it has arranged a private placement with billionaire Canadian mining investor Eric Sprott, who will purchase 9.87 million common shares of the company at C$1.52 per share for gross proceeds of C$15 million.

Odey says governments may make private gold ownership illegal

Crispin Odey, one of Europe’s highest-profile hedge fund managers, said that governments may ban private gold ownership if they lose control of inflation in the wake of the coronavirus crisis.

Newcrest secures water supplies for Cadia mine

Newcrest Mining Ltd on Wednesday said it had achieved sufficient water levels at its Cadia gold and copper mine, easing production-related concerns at the New South Wales-based project for at least two years.

Antofagasta cuts dividend on virus uncertainty

Antofagasta on Tuesday cut its 2019 final dividend by $70 million citing uncertainty due to covid-19 restrictions in place in Chile, as miners globally fight supply chain disruptions and production halts.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners