Vancouver — Continuing with a corporate philosophy of acquiring advanced gold projects, Seabridge Resources (SEA-V) has inked a deal with North American Metals (NAM-V) to pick up the Red Mountain project in northwestern British Columbia.
Located 19 km east of Stewart, Red Mountain hosts a measured resource of 1.26 million tonnes grading 8 grams gold per tonne and 340,000 tonnes averaging 7 grams gold in the inferred category. The overall resource is pegged at 12 million tonnes grading 2.54 grams gold. The estimate is based on 127,000 metres of drilling and 2,000 metres of underground workings, including a 1-km-long decline completed by now defunct Royal Oak Mines and previous operators Lac Minerals and Barrick Gold (ABX-T). The project also has on site an estimated $500,000 worth of mining equipment and a $1.5 million cash reclamation deposit lodged with the British Colombia Mines Ministry
“Consistent with our strategy, this acquisition adds a quality gold resource with low holding costs,” says Seabridge president, Rudi Fronk. “We also believe that we can realize additional value from the reclamation bond and subsequent sale of the mining equipment.”
The deposit is characterized by northwesterly plunging mineralization in three southwesterly dipping elliptical zones formed in stratified sediments and an intrusion. Northwesterly plunging folds and brittle faults cut the host rocks and mineralization.
North American Metals, 89%-owned by Wheaton River Minerals (WRM-T) acquired the property in 1999 from Royal Oak for $413,360. The price tag for Seabridge to pick up 100% of the property is 800,000 shares. The property remains subject to a series of net smelter royalty agreements ranging from 2-to-6.5%.
Be the first to comment on "Seabridge nabs Red Mountain"