|The KSM Project is one of the largest undeveloped gold projects in the world. An updated Preliminary Feasibility Study (PFS) estimates proven and probable reserves total 38.8 million ounces of gold and 10.2 billion pounds of copper, plus silver, some in separate zones. The KSM Project has completed a joint harmonized environmental assessment review as outlined by the British Columbia Environmental Assessment Act and the Canadian Environmental Assessment Act. In July, 2014 the project received its Environmental Assessment Certificate from the provincial authorities. Final federal approval was received in December, 2014. |
Exploration continues at KSM. Over the past three years, Seabridge has successfully targeted higher grade zones beneath the near surface porphyry deposits, resulting in the discovery of Deep Kerr (2013) and the Iron Cap Lower Zone (2014). These discoveries have led to sizable resource expansions of higher grade material configured for low cost block cave underground mining. This mining technique substantially reduces the project footprint and waste generation.
During its first seven years of operation, the mine is expected to have an annual gold output of 1 million ounces and life of mine annual production is estimated at 592,000 ounces of gold, 286,000 pounds of copper and 2.8 million ounces of silver. The projected mine life is approximately 52 years.
Construction costs, however, have soared lately, with the most recent preliminary study showing that building the mine would cost $5 billion, or over 20% of the total market capitalization of Barrick Gold, the No.1 producer by output in the world.