Seabridge gains with Fat

Seabridge Gold (SEA-V) has improved the gold resource at its Fat deposit, on the Courageous Lake property, 240 km northeast of Yellowknife, N.W.T.

About 3,000 metres of core in eight holes have been drilled, and more drilling is under way. One hole, drilled to upgrade inferred resources at the centre of the deposit, intersected 78.3 metres grading 2.98 grams gold per tonne. This intercept is better (by more than 20%) than the predicted results using the most recent resource model.

Three holes were drilled 300 metres south of the Fat deposit. Highlighting this drilling into the south extension were two intercepts in hole 006: one 34.5-metre interval of 3.91 grams gold and a separate one of 16.3 metres averaging 3.28 grams gold. The two other holes may have been drilled too far west to intersect the Main zone; however, hole 005 cut several intervals of significant gold (up to 3.94 grams gold over a 6-metre-width) and hole 004 returned 22.5 metres of 1.32 grams gold. Drilling at 50-metre spacings is planned.

Four holes were drilled into new targets. One hole, at the Walsh Lake target, 7 km south of Fat, intersected 3.8 metres grading 2.53 grams gold, as well as a separate interval of 1.7 metres grading 6.28 grams gold. The hole was following up on a 10-metre channel sample that averaged 2 grams gold per tonne.

Three holes tested the Olsen target 3.5 km south of Fat. The highlights were a 15-metre intercept grading 2.01 grams gold in one hole and 4.5 metres grading 1.96 grams gold in another. One hole failed to intersect significant gold.

The property covers 53 km of the Matthews Lake greenstone belt. The Fat deposit has a measured and indicated resource of 48 million tonnes grading 2.06 grams gold (or 3.2 million oz. gold). In the inferred category are 65 million tonnes grading 2.07 grams gold. The resource model, reviewed in 2003, used data from 420 holes (107,416 metres) drilled, in part, by Noranda (nrd-t) and Placer Dome (PDG-T).

Accessibility to the property is enhanced by an airstrip 6 km to the south at the past-producing Salmita mine. The Lupin winter road also passes nearby.

Seabridge owns the 270-sq.-km Courageous Lake property through its wholly owned subsidiary, 5073 N.W.T. A 2% net smelter return royalty is payable to the former owners.