NORTHWEST TERRITORIES - Seabridge Gold of Toronto has released a new preliminary economic assessment for its Courageous Lake project that estimates a pre-tax NPV of US$1.6 billion at a 5% discount rate and an IRR of 18.1% at current gold prices.
The subject of the study is the FAT deposit with 12.0 million tonnes at 2.26 g/t Au in the measured category, 67.3 million tonnes at 2.07 g/t in the indicated category, and 21.8 million tonnes at 1.97 g/t in the inferred portion.
The PEA outlines a 17,500 t/d open pit mine and on site concentrator that will be operational for at least 16 years. Annual output will be 383,00 oz of gold. Preproduction capital costs are expected to be US$1.26 billion, and the total cost per ounce of gold over the life of the project will be US$850.
Seabridge is considering two options to reduce the cost of the project. The PEA was made with provision for diesel and wind powered electrical generation, but there are nearby hydro-electric sources that may be a better option. Consideration is also being given to the feasibility of extending the permanent road access at Tibbit Lake to Lockhart camp.
The executive summary of the Courageous Lake PEA is available at www.SeabridgeGold.net/CL-PEA_ExecSummary2011.pdf.
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