Seabridge Gold's KSM project improves economics in new study
Seabridge Gold announced the results of a Preliminary Economic Assessment for its 100%-owned KSM project located in northern British Columbia, Canada. The PEA incorporates the Deep Kerr Zone and the Iron Cap Lower Zone into a different approach to developing the KSM Project by emphasizing low cost block cave mining and reducing the number and size of the open pits. The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. The Base Case life of mine operating costs is estimated at negative $179 per ounce of gold produced, compared to the positive $277 per ounce in the 2016 PFS. The total cost Including all capital, operating and closure costs is estimated at $358 per ounce. Open pits would account for only 22% of total production compared to 70% in the 2016 PFS, implying a smaller footprint of 2.4 billion tonnes or 81% less waste rock generated vs. the 2016 PFS. By including Deep Kerr, annual average maximum throughput of 130,000 tons per day envisioned in the 2016 PFS has been increased to 170,000 tons per day in the PEA without significant redesign of facilities.