Seabridge Gold (TSX: SEA) has been granted a twenty year extension on certain permits at its flagship KSM project by the British Columbian government.
The company has seen its License of Occupation renewed for a twenty year period for the Mitchell Treaty Tunnels, extending the license through to September 27, 2024. The original license, granted in 2014, was set to expire this week.
The license enables the company to occupy the area where these tunnels are to be dug. The tunnels, at a planned length of 23 kilometres each, are to be dug parallel to each other, enabling the east and west sides of the KSM project to be connected.
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Notably, the renewed license removes language that includes “subject to the prior rights,” of 11 mineral claims that the tunnels are to travel through. Those claims are held by a joint venture owned by Tudor Gold, Teuton Resources, and American Creek Resources, and cover 12.5 kilometres of the 23 kilometre-long planned tunnels. While the license grants no interest to KSM in the minerals encountered in that portion of the tunnel, the language has been removed because it is said to serve no purpose, with the use of the area under the license granted to Seabridge to take priority over any mineral uses by the joint venture.
READ: Seabridge Gold Obtains ‘Substantially Started’ Designation For KSM
“We wish to acknowledge the significant support our KSM project has received from the B.C. Government not only for this License of Occupation but also for the Substantially Started designation granted in July. We are pleased the renewed LoO provides greater clarity on the priority rights of KSMCo’s MTT across the Treaty Creek Project. Furthermore, the renewal is for a 20-year term whereas the previous LoO was for 10 years,” commented Seabridge Gold CEO Rudi Fronk.
In addition to the license of occupation, Seabridge also holds permits for the construction of the portals at the east side, where the tailings management facility is to be located, the west side, where the mine is to be located, and the Treaty Saddle area, including the first 100 metres of each end of the tunnels. It also holds licenses for the construction of temporary and long-term surface infrastructure at the Treat Saddle area, which is partially on Treat Creek Project mineral claims.
A permit amendment process is currently underway to permit the construction of the full length of the Mitchell Treaty Tunnels.
Seabridge Gold last traded at $23.60 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
