Snowstorm is located 15 kilometres north of Turquoise Ridge on the blind extension of the prolific Getchell Trend. The company said this drilling program is designed to follow-up on results that found discrete gold-bearing intervals hosted within a similar structural setting and rocks as the Turquoise Ridge Mine, which is part of a gold mining joint venture owned by Barrick Gold Corp. [ABX-TSX, GOLD-NYSE] and Newmont Corp., [NGT-TSX, NEM-NYSE].
The company said it plans to re-enter existing drill holes and use directional drilling tools to continue the drill hole from known gold-bearing intersections toward prospective higher grade feeder zones.
An initial program of about 2,500 metres of exploration drilling is planned for this program.
Seabridge holds a 100% interest in several North American gold projects. Its key asset is the 100% owed KSM gold project which is located in B.C.’s Golden Triangle region.
Seabridge Gold’s KSM property is one of the world’s largest undeveloped gold projects as measured by reserves. It is estimated to contain 38.8 million ounces of gold and 10.2 billion pounds of copper in proven and probable reserves.
Seabridge and Eskay Mining Corp. [ESK-TSXV, ESKYF-OTCQB, KN7-Frankfurt, AOYDPM] recently agreed to share part of the cost of building a $12 million mine access road in B.C.
The aim is to shorten the time needed to establish early site access to the KSM deposits, enabling more rapid development of the project.
Co-operation between the two companies is expected to facilitate the emergence of B.C.’s Golden Triangle as one of Canada’s most important new mining camps.’’
Seabridge’s portfolio also includes the Courageous Lake project in Canada’s Northwest Territories and the 3 Aces project in Canada’s Yukon Territory.
The Snowstorm Project covers roughly 102.8 square kilometres in the Snowstorm Mountains of Nevada. The project is about 90 kilometres northwest of Winnemucca, six kilometres northeast of the Twin Creek Mine and 15 kilometres northeast of Turquoise Ridge. Both of those operations are operated by Nevada Gold Mines, a Barrick/Newmont joint venture.
“Our multi-year exploration program at Snowstorm has found gold-bearing structures which support the potential for an economic deposit,” said Seabridge Chairman and CEO Rudi Fronk.
“We are now planning to step out from the gold system we have identified to evaluate nearby structures as pathways for gold-bearing fluids.’’
Seabridge shares were lower Thursday, easing 0.44% or 10 cents to $22.52. The shares are currently trading in a 52-week range of $29 and $19.45.