Seabridge Gold has announced the completion of an updated preliminary feasibility study for its KSM project located in northwest B.C.
The KSM project is a proposed gold, copper, silver and molybdenum mine located 65 km north of Stewart. The 2022 feasibility study is an update from the previous one conducted in 2016.
The study, prepared by Tetra Tech estimates a considerably more sustainable and profitable mining operation across all its open mine pit mines, said the company on June 28.
The mining company also said the primary reasons for improvements in the plan arise from the acquisition of the East Mitchell open pit resource and an expansion to planned mill throughput.
“The improvements also include a smaller environmental footprint, reduced waste rock production, reduced greenhouse gas emissions by electrification of the mine haul fleet, a 50 per cent increase in mill throughput, and the elimination of capital-intensive block cave mining,” said Seabridge in a statement.
“We have redesigned KSM for an inflationary environment,” said Rudi Fronk, chairman and CEO, Seabridge Gold, adding, the themes of this feasibility study revolve around capital and energy efficiency.
“The mine plan is simplified to bring total capital down below 2016 estimates despite inflation by reducing sustaining capital. We have accomplished this by eliminating underground mine development which is deferred to future years,” said Fronk.
Seabridge also noted that important steps have been taken to make the project less dependent on oil, especially diesel fuel, which is an inflationary hot spot and likely to remain so.
“We have done this by maximizing the use of low-cost, green hydroelectric energy,” said Fronk.
The 2022 study showed gold reserves increase 22 per cent from 38.8 million ounces to 47.3 million ounces, due to higher gold grades added from the East Mitchell deposit.
It estimates a 90 per cent increase in average annual gold production, 22 per cent increase in annual copper production, 36 per cent increase in annual silver production, and a 363 per cent increase in annual molybdenum production.
Earlier in June, the mining company also said it is completing the set up of its office in Terrace with an aim to have more street presence in the area.
Seabridge, headquartered in Toronto, currently operates out of Smithers in the northwest. The Lazelle Ave. office of the mining company in Terrace, will focus on training, on-boarding and other procurement processes.
As part of its public engagement strategy, the mining company held several meetings with local governments in northwest B.C., including the City of Terrace, Smithers and the Regional District of Kitimat Stikine.
Representatives from Seabridge told Terrace council that the company is committed to local hiring with several employees already hired out of Terrace and with more job postings coming up.