TORONTO, CANADA--(Marketwire - Aug. 12, 2009) - Seabridge Gold (TSX:SEA)(NYSE Amex:SA) announced today that it has entered into an agreement with Max Minerals Ltd. to purchase title to 22 mineral claims totaling 8,975 hectares (approximately 22,160 acres) immediately adjacent to its 100% owned KSM project located in British Columbia, Canada. On closing of the transaction, which is expected to occur within 30 days, Seabridge will pay Max C$1.0 million in cash, issue Max 75,000 common shares of Seabridge and grant Max a 2.5% net smelter royalty ("NSR") on the claims being purchased. The purchased claims are also subject to a 2% NSR in favour of the original owner of the claims under which Seabridge would be required to pay 10 annual advance royalty payments of C$100,000 each, ending in 2018, which amounts would be credited against any payments due under the 2% NSR. Closing of the transaction is subject to regulatory approval.
Seabridge President and CEO Rudi Fronk said this transaction "is an important step toward the development of the KSM project. The added claims significantly increase our land position, adding prospective ground for additional exploration, needed room for waste rock storage and project infrastructure and securing mineral rights to a part of the proposed tunnel route between the planned mining and milling facilities."
The KSM project is one of the world's largest undeveloped gold/copper projects. The following table summarizes NI 43-101 compliant mineral resources for all three zones at the KSM project using a 0.50 gram per tonne (g/t) gold equivalent cut-off grade (see news releases dated March 11, 2009 and March 25, 2009 for details).
KSM Mineral Resources at 0.50 g/t Gold Equivalent Cutoff-Grade
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Measured Mineral Resources
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Zone Tonnes Au Au Cu Cu Lbs
(000) (g/t) Ozs (%) (millions)
(000)
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Mitchell 579,300 0.66 12,292 0.18 2,298
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Sulphurets No measured resources
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Kerr No measured resources
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Total 579,300 0.66 12,292 0.18 2,298
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Indicated Mineral Resources
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Zone Tonnes Au Au Cu Cu Lbs
(000) (g/t) Ozs (%) (millions)
(000)
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Mitchell 930,600 0.62 18,550 0.18 3,692
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Sulphurets 87,300 0.72 2,021 0.27 520
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Kerr 225,300 0.23 1,666 0.41 2,036
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Total 1,243,200 0.56 22,237 0.23 6,248
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Measured plus Indicated Mineral Resources
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Zone Tonnes Au Au Cu Cu Lbs
(000) (g/t) Ozs (%) (millions)
(000)
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Mitchell 1,509,900 0.64 30,842 0.18 5,990
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Sulphurets 87,300 0.72 2,021 0.27 520
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Kerr 225,300 0.23 1,666 0.41 2,036
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Total 1,822,500 0.59 34,529 0.21 8,546
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Inferred Mineral Resources
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Zone Tonnes Au Au Cu Cu Lbs
(000) (g/t) Ozs (%) (millions)
(000)
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Mitchell 514,900 0.51 8,442 0.14 1,589
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Sulphurets 160,900 0.63 3,259 0.17 603
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Kerr 69,900 0.18 405 0.39 601
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Total 745,700 0.50 12,106 0.17 2,793
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Seabridge holds a 100% interest in several North American gold resource projects. The Company's principal assets are the KSM property located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada's Northwest Territories. For a breakdown of Seabridge's mineral resources by project and resource category please visit the Company's website at target="_parent">www.sedar.com) for the year ended December 31, 2008 and in the Corporation's Annual Report Form 20-F filed with the U.S. Securities and Exchange Commission on EDGAR (available at
ON BEHALF OF THE BOARD
Rudi Fronk, President & C.E.O.
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