Copper staining at the Mitchell deposit. (Seabridge Gold photo)

Copper staining at the Mitchell deposit. (Seabridge Gold photo)

Seabridge buys Snowfields gold deposit from Pretivm

The proximity of the deposit to Mitchell greatly simplifies the planning process, Seabridge said.

Seabridge Gold has concluded an acquisition that could extend the life of its proposed Kerr-Sulpherets-Mitchell (KSM) gold-copper mine in Northwest B.C.

Last week, the company purchased Pretivm’s Snowfields property, which lies in the same valley adjacent to the Seabridge’s Mitchell deposit, for US$100 million. Pretivm will also receive a 1.5 per cent net smelter royalty on production from the deposit.

Pretivm extimates Snowfield’s mineral resource is 25.9 million ounces of measured and indicated gold and a further 9.0 million ounces in the inferred category as well as substantial copper resources.

The proximity of the deposit to Mitchell greatly simplifies the planning process, Seabridge said.

“Work is already underway to determine how to integrate Snowfield into a new KSM mine plan,” said Rudi Fronk, Seabridge chair and CEO.

“We expect a large portion of the Snowfield mineral resource could be exploited in a combined operation, which could potentially improve KSM’s IRR (internal rate of return) and NPV (net present value) projections as well as shortening the payback period of initial capital. Our current environmental approvals include haul roads through the Snowfield property which may allow us to expedite its development and access some of its best grade material early in the mining process.”

Finalization of the sale is dependent on Seabridge obtaining financing for the cash payment.