Tudor Gold (TSXV: TUD) this morning revealed the reasoning behind it’s recent legal action against Seabridge Gold (TSX: SEA) alongside a potential resolution. Tudor has gone public with a plea to move the proposed tunnels associated with Seabridge’s KSM project in an effort to save the value of its own project.
As it currently stands, Seabridge Gold has proposed 22 kilometres of tunneling in association with its massive KSM project. The tunnels would connect the proposed processing plant, to the northeast of Tudor’s Treaty Creek claims, to five separate deposits that comprise of the KSM project, which are found to the southwest of Tudor’s claims.
The problem with the currently proposed path of the tunnels however, is that they directly intersect Tudor Gold’s Goldstorm deposit, as well as the Perfectstorm zone, which is a recent grassroots discovery that has been made on the property. Specifically, an estimated 12 kilometres of the tunnels, out of the total 22 kilometre length, directly collides with Goldstorm, which is a major problem for Tudor. The tunnels also include a buffer zone, further locking up mineralization that is available to be mined or explored.
Goldstorm has seen 190,000 metres of drilling conducted since 2016, resulting in a current resource of 21.66 million ounces of gold at 0.92 g/t, 128.73 million ounces of silver at 5.48 g/t, and 2.87 million pounds of copper on an indicated basis. Additional inferred resources of 4.88 million ounces of gold at 1.01 g/t, 28.97 million ounces of silver at 6.02 g/t, and 503.2 million pounds of copper at 0.15% also exist.
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Perfectstorm meanwhile is said to have the potential to exceed Goldstorm in both tonnage and grade.
Tudor as a result has proposed a resolution to the ongoing dispute between itself and Seabridge, by suggesting that the tunnels get relocated by approximately one kilometre to the north. The move would add an estimated 2.1 kilometres to the total length of the tunnels, which Tudor says results in only a 3.1% increase in total tunnel length, once ancillary, ore handling, and other excavations related to the tunnels are factored in. Tudor also suggests that the proposed route would encounter better or similar ground as compared to the current path.
The company evidently proposed the changes to Seabridge back in May 2025, but based on recent legal action – Tudor has brought three separate proceedings to the BC courts in recent weeks in relation to the tunnels – it seems Seabridge has not budged on their current position, leading to Tudor taking the suggestion public.
For obvious reasons, Tudor has indicated it prefers to work with both the Province of British Columbia and Seabridge Gold to modify the planned route of the tunnels, with the changes to enable the economic benefits from both the projects to be realized, “versus only one, or none.”
“We are counting on the BC government to support the potential of Treaty Creek and not sacrifice it for the sake of KSM,” commented Joe Ovsenek, CEO of Tudor.
Separately, Tudor this morning also indicated they intend to update the current resource estimate for Treaty Creek, with an estimated 15,000 metres of drilling having occurred since the last update. The company has also applied for a permit to develop an underground ramp to access the SC-1 zone and others. If granted, Tudor intends to collar the portal and commence the excavation of the ramp with a target completion by Q3 2026.
Tudor Gold last traded at $0.96 on the TSX Venture.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
