Seabridge begins work in NWT

Vancouver — Junior Seabridge Gold (SEA-V) has launched a $1.6-million program of exploration on its wholly owned Courageous Lake project in the Northwest Territories.

Initially, the company will select drill-core samples for metallurgical tests, results from which will be used in a scoping study. Then, mapping, sampling and geophysics will attempt to identify new targets. The area already hosts several known gold occurrences, and Seabridge has staked an additional 25,000 acres of ground, bringing its total land position on the Courageous Lake-Matthews Lake greenstone belt to 62,000 acres.

The final phase of this year’s program includes geophysical surveys over the selected targets, leading to drilling in 2004.

At a 1-gram-gold cut off, the deposit hosts 7.5 million oz. gold in 1.8 million measured tonnes grading 3.11 grams gold, 46 million indicated tonnes of 2.02 grams and 65 million inferred tonnes of 2.07 grams.

Seabridge acquired the project in 2002 from Newmont Mining (NEM-N) and Total Resources. Upon closing the deal, Seabridge paid US$2.5 million; an additional US$1.5-million is payable when the spot price of gold closes at or above US$360 per oz. for 10 consecutive days. A final, US$1.5 million payment is due when the spot price of gold closes at or above US$400 per oz. or when a production decision is made. Newmont and Total retain a 2% net smelter return royalty.

In order to fund the program, Seabridge has arranged a $2.3-million financing consisting of 1 million units priced at $2.25 each. A unit consists of one share and half a warrant. A full warrant allows the holder to buy another share at $2.50 for one year and at $3 in the second year.