Seabridge Gold Obtains ‘Substantially Started’ Designation For KSM
Seabridge Gold (TSX: SEA) has achieved a major milestone at its flagship KSM project, with the BC Government officially designating the project as having “substantially started.”
The ruling is significant for the KSM project, as the designation removes the ability for the Environmental Assessment Certificate for the project to expire. Without this designation, that certificate was slated to expire July 29, 2026. The designation also removes uncertainty for the project, making it easier for Seabridge to obtain project funding.
The Environmental Assessment Certificate was initially granted in July 2014.
“This is a significant regulatory milestone for the KSM Project, positioning it to become a multigenerational economic anchor for northwestern BC. [..] KSM’s large copper reserve can contribute to meeting North America’s technology, defense, and security objectives while the project can also promote the economic wellbeing of our Indigenous partners,” commented Rudi Fronk, CEO and Chairman of Seabridge.
The KSM project is said to be the largest undeveloped gold project, with the project boasting proven and probable reserves of 47.3 million gold ounces and 7.3 billion pounds of copper, in addition to measured and indicated resources of 36.2 million gold ounces and 5.4 billion pounds of copper. A 2022 prefeasibility study outlines an after-tax net present value (5% discount) of US$7.9 billion based on $1,742 gold and $3.53 copper, which is based on a mine life of 33 years.
Seabridge to date has spent over $1.0 billion developing the project since it was acquired in 2001, of which $444 million was spent on project construction. Total CapEx required to get the project to construction is estimated at US$6.4 billion.
Seabridge Gold last traded at $21.23 on the TSX.
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