Seabridge Gold (TSX:SEA) (NYSE:SA) announced today that winter drilling at its 100%-owned Courageous Lake Project has successfully identified two new gold zones, Olsen and Marsh Pond, with widths and grades suggesting they could make a contribution to project resources similar to the Walsh Lake Deposit discovered by Seabridge in 2012. This year’s drill program also found two other target zones that, with additional work, could potentially contribute to the resource base at the Courageous Lake Project. Three targets did not return positive results.
Walsh Lake has a near surface inferred resource of 482,000 ounces of gold (4.6 million tonnes grading 3.24 g/T). Metallurgical testing has demonstrated that the material is free-milling with cyanide recoveries as high as 95%.
The 2018 winter drill program at Courageous Lake was designed as an initial drill test of seven targets reporting historical gold occurrences to determine which ones had sufficient grade, strike and width within 200 meters of surface to potentially replicate the Walsh Lake Deposit. All the targets accompany deformation zones within a well-defined stratigraphic package near the contact between metamorphosed volcanic rocks and clastic metasedimentary rocks and each produced a consistent geophysical response. Seabridge has now tested the favourable stratigraphy over a distance of 7.5 kilometers but it can be traced for more than 53kilometers through the entire Seabridge claim block.
Rudi Fronk, Chairman and CEO of Seabridge, commented: “We see the potential for a more economic Courageous Lake Project at current gold prices by mining higher-grade, free-milling satellite deposits like Walsh Lake as well as the refractory reserves in the much larger FAT deposit. We are therefore very pleased with the results from this year’s drilling because we now have two more attractive targets for follow-up work as well as some potentially significant new target ideas we need to evaluate. Our next step is to develop a conceptual design for a greater Courageous Lake operation that could exploit the satellite deposits early in the project life.”