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Mining Explorers 2011: Seabridge Gold Inc.


Last updated 11/6/2011 at Noon

SEA: TSX and SA: NYSE Amex

President and CEO: Rudi P. Fronk

Chairman: James S. Anthony

Senior Vice President, Exploration: William E. Threlkeld

Seabridge Gold Inc. is a development stage company engaged in the acquisition and exploration of gold properties located in Canada. The company is designed to provide its shareholders with exceptional leverage to a rising gold price by increasing its gold ounces in the ground but not to go into production on its own.

During the period 1999 through 2002, when the price of gold was much lower than it is today, Seabridge acquired 100 percent interest in eight advanced-stage gold projects in North America. As the price of gold has moved higher over the past several years, the company has commenced exploration programs and engineering studies at several of these projects. Seabridge is currently focused on the KSM (Kerr-Sulphurets-Mitchell) property in northwestern British Columbia, which is one of the world's largest undeveloped gold/copper projects, and the Courageous Lake property located in the Slave Province, an extensive geological terrain in the Northwest Territories.

In September, Seabridge reported results of a second tranche of 2011 infill drilling at the Courageous Lake Project are likely to expand the project's multimillion-ounce gold resource, increase the average grade and upgrade inferred resources to higher categories.

Assays from the latest 13 core holes continue to confirm the project's resource model with some intercepts proving to be wider and better grade than predicted.

In August, Seabridge also reported encouraging results from an initial 10 core holes of infill drilling program in the FAT (Felsic Ash Tuff) Deposit at Courageous Lake.

Seabridge said its C$16 million exploration program for 2011 at Courageous Lake was designed to generate the data required to complete a preliminary feasibility study by the second quarter of 2012.

By June 30, the company has spent C$5.9 million on the project.

The drilling component of the 2011 program had four main objectives: Upgrade inferred resources within the current FAT deposit pit plan by infill drilling, potentially qualifying them as reserves in the PFS; complete geotechnical drilling required for pit slope and water management planning in the PFS; condemn areas where project facilities will be located; and look for new targets along the 53 kilometers (33 miles) of the Matthew's Lake greenstone belt held by Seabridge.

Assays were reported for 23 infill core holes totaling 7,460 meters drilled.

Assays for an additional 25 infill holes totaling a further 6,060 meters drilled were pending.

Assays are also awaited for two promising new exploration targets drilled for the first time this year.

Seabridge President Rudi Fronk said management is confident that the drilling upgraded a significant portion of the inferred resources that lie within the proposed pit and that those resources will be converted to reserves in the planned PFS. "In addition, we are intrigued by the two new targets we drilled south of the FAT deposit," Fronk added.

An updated NI 43-101-compliant resource estimate for the Courageous Lake project that will incorporate the 2011 infill drilling results is expected late this year.

The project's current NI 43-101-compliant resource estimate, at a 0.83 gram per metric ton cutoff, includes 90.17 million metric tons averaging 2.34 g/t gold in measured and indicated resources for 6.78 million ounces in contained gold and 63.05 million metric tons averaging 2.24 g/t gold in inferred resources for 4.54 million ounces in contained gold.

Earlier this year, Seabridge completed a revised preliminary feasibility study for its KSM (Kerr-Sulphurets-Mitchell) Project, which is Canada's largest undeveloped gold project.

The revised study demonstrates a higher net present value with enhancements to cash flows, reserves and the project's 37-year mine life.

Seabridge reported proven and probable reserves for KSM, including the Iron Cap Zone discovered in 2010, totaling 2.2 billion metric tons grading 0.55 g/t gold, 0.21 percent copper, 3.04 g/t silver and 53.2 parts per million molybdenum for 38.5 million ounces gold, 9.985 billion pounds copper, 214 million ounces silver and 257 million pounds molybdenum.

The company completed seven drill holes drilled in the Sulphurets deposit at KSM and in July, said the results exceeded expectations with wide intersections containing gold grades well above the KSM average.

The company said a key objective of its 2011 program at KSM was to upgrade about 3 million ounces of higher grade inferred gold resources at the Sulphurets and Kerr deposits to proven and probable reserves.

These resources are currently classified as waste in the 2011 PFS. Fronk said the newly identified mineralization should increase reserves and could be exploited in the earlier years of production, which would enhance its economic impact.

In September,

Seabridge also reported that five geotechnical holes drilled in the Mitchell deposit at KSM could dramatically reshape the project's design, improve its economics and reduce its potential impact on the environment.

Golder Associates, an independent consultant specializing in underground mining, recommended the five holes in assessing the potential for a cost-effective panel cave operation at the Mitchell deposit to reach the deeper portions of the deposit from underground following an initial phase of open-pit mining as outlined in the project's current PFS. The five holes support the potential for cost-effective panel caving to access the deeper Mitchell material while substantially reducing strip ratios and waste rock volumes.

Seabridge said the holes confirm the initial caving assumptions of competent rock in both the ore and development zones.

Each of the holes also returned very long runs of excellent grade down to the levels which Golder Associates has proposed for underground development.

Seabridge said the consultant will now upgrade its preliminary design using the geotechnical and other data provided by the five holes.

Cash and short-term deposits: C$60.7million (June 30, 2011)

Working capital: C$58.1 million (June 30, 2011)

Market capitalization: C$1.01 billion (Sept. 23, 2011)

106 Front St. East, Suite 400

Toronto, Ontario M5A 1E1

Tel: (416) 367-9292 • Fax: (416) 367-2711


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