The Opportunity

KSM is the world’s largest undeveloped gold project by resources (88.7M oz M&I plus 71.5M oz inferred) with 19.46 billion pounds of copper resources in the M&I categories plus 38.5 billion pounds in the inferred category. KSM has received its environmental approvals in one of the globe's safest and most stable jurisdictions.

The latest technical report describes a robust project that has the support of nearby indigenous people and local communities:

  • A 2022 Pre-Feasibility Study (“PFS”) captures proven and probable reserves of 47.3 million ounces of gold plus 7.3 billion pounds of copper and 160 million ounces of silver over a 33 year open pit mine life.  
  • The 2022 PFS excludes resources totaling from the Kerr and Iron Cap deposits that could be mined after the 33 year open pit mine life.
  • The 2022 study projects an after tax net present value (at 5%) of US$7.9 billion and a life of mine total cost (including all capital, reclamation and closure costs) of US$601 per ounce of gold produced after base metal credits. Over the 33 year mine life, average annual metal production is estimated at 1.0 million ounces of gold, 178 million pounds of copper and 3.0   million ounces of silver.

There are two important opportunities which Seabridge is now pursuing at KSM:

First, to ensure that KSM’s environmental approvals remain in place for the life of the project, Seabridge secured US$375 million in funding to undertake early site construction activities which are expected to result in the project receiving Substantially Started designation. With this designation, the existing approvals remain in place for the life of the project. In January 2024, Seabridge filed the formal application with the B.C. regulators for a Substantially Started designation.

Second, we have an opportunity to unlock the extraordinary value in KSM by establishing a joint venture with a global mining company able to finance, build and operate the project responsibly. Our objective is to retain a significant portion of the working interest in a KSM joint venture while minimizing our capital contribution. We believe that the 2022 PFS, along with a Substantially Started designation, strengthens our hands in our ongoing joint venture discussions.

The scientific and technical information in respect of the KSM Project herein was derived from the technical Report entitled KSM (Kerr – Sulphurets – Mitchell) Prefeasibility Study and Preliminary Economic Assessment dated effective August 8, 2022. This information was prepared by leading consulting firms and their Qualified Persons (as defined in NI 43-101), all of who are independent of Seabridge and are listed below along with their areas of responsibility:
(i) Tetra Tech, Inc. under the direction of Hassan Ghaffari P.Eng (surface infrastructure, capital estimate and financial analysis), John Huang P.Eng. (metallurgical testing review, permanent water treatment, mineral process design and operating cost estimation for process, general and administrative (“G&A”) and site services, and overall report preparation)
(ii) Wood Canada Limited, under the direction of Henry Kim P.Geo. (Mineral Resources)
(iii) Moose Mountain Technical Services under the direction of Jim Gray P.Eng. (open pit Mineral Reserves, open pit mining operations, mine capital and mine operating costs, MTT and rail ore conveyance design, tunnel capital costs)
(iv) N. Brazier Associates Inc. under the direction of W.N. Brazier P.Eng. (Electrical power supply, energy recovery plants)
(v) ERM Consultants Canada Ltd. under the direction of Rolf Schmitt P.Geo. (environment and permitting)
(vi) Klohn Crippen Berger Ltd. under the direction of David Willms P.Eng (design of surface water diversions, diversion tunnels, tailing management facility, water treatment dam and RSF and tunnel geotechnical)
(vii) BGC Engineering Inc. under the direction of Derek Kinakin P.Geo., P.L.Eng., P.G. (rock mechanics, geohazards and mining pit slopes)
(viii) WSP Golder Inc., under the direction of Ross Hammett P.Eng (Block Cave mining)