The Opportunity

KSM is the world’s largest undeveloped gold project by resources (76M oz M&I plus 66M oz inferred) with 17.1 billion pounds of copper resources in the M&I categories in addition. 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 2016 Pre-Feasibility Study (“PFS”) captures proven and probable reserves of 38.8 million ounces of gold plus 10 billion pounds of copper over a 53 year mine life  
  • The 2016 PFS excludes inferred resources totaling 66 million ounces of gold and 33 billion pounds of copper
  • Recent acquisition of Snowfield, immediately adjacent to KSM’s Mitchell deposit, provides an additional 25.9 million ounces of gold in the measured and indicated categories plus another 9.0 million ounces of gold in the inferred category

There are three important opportunities which Seabridge is now pursuing:

First, with the acquisition of the Snowfield deposit, we can now work to integrate it into KSM. An updated PFS is now in progress to assess this integration. We expect this work to increase reserves and demonstrate significant improvements in project economics. We expect these improvements will help Seabridge attract a partner to build and operate a mine at KSM on much better terms for Seabridge shareholders. In particular, adding Snowfield substantially enhances KSM’s open pit production profile which benefits prospective partners who are more comfortable with this mining method.

Second, the discoveries made at KSM since 2016 at Iron Cap and Deep Kerr represent an opportunity to integrate a more copper-rich resource into mine plans. Copper is now recognized as a ‘green metal’ critical to meeting Canada’s 2050 target of zero carbon emissions. To meet this target Canada must make greater use of copper to electrify key components of the economy such as transportation. Significant progress has been made towards assessing a set of alternative mine plans to exploit Iron Cap and Deep Kerr, increasing copper production, reducing volumes of waste and shrinking the project’s footprint using block caving mine methods.

Third, 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. Meeting this objective likely requires greater stability in the global economy reflecting mitigation of the impact of the coronavirus pandemic.