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Seabridge adds 3 Aces to exploration hand

Canadian explorer Seabridge Gold says its team of geologists is keen to start review work on 3 Aces in the southeast Yukon after it reached agreement with Golden Predator Mining to acquire the asset.
Seabridge adds 3 Aces to exploration hand Seabridge adds 3 Aces to exploration hand Seabridge adds 3 Aces to exploration hand Seabridge adds 3 Aces to exploration hand Seabridge adds 3 Aces to exploration hand

Seabridge Gold has picked up Golden Predator's 3 Aces project in Canada's Yukon

Seabridge is adding the gold property to its portfolio for 300,000 Seabridge shares and an immediate cash payment of C$263,000 as reimbursement for sunk costs. Golden Predator, which is focusing on its Brewery Creek project near Dawson City, will receive further payments of C$1 million on confirmation of a 2.5 million ounce gold resource, and $1.25 million more if the resource reaches 5Moz.

It will retain a 0.5% net smelter return royalty on the project.

3 Aces does not have an established resource, but 300 holes have been drilled and Seabridge says about 37% of the holes hit plus-5g/t gold intersections, and 27% returned plus-8g/t.

It believes further drilling in the Central Core area will add to potential for an initial resource with "exceptional" grade.

"We think 3 Aces is a worthy addition to the three outstanding exploration opportunities we already own in British Columbia, Nevada and the Northwest Territories," said Seabridge Gold CEO Rudi Fronk. "Golden Predator has done an excellent job of demonstrating the exploration potential at 3 Aces, confirming the project's positive metallurgy and establishing excellent relationships with local First Nations and communities."

The transaction is subject to final due diligence by Seabridge and approval by regulators.

The 357sq.km property is on the eastern margin of the Selwyn Basin, a thick package of sedimentary rocks extending across the Yukon that hosts several large base metal deposits.

At 3 Aces, discrete quartz veins containing arsenopyrite-pyrrhotite-pyrite and free gold are found within a broad zone of gold-bearing iron carbonate-clay alteration envelopes, which Seabridge will target in its exploration work.

Seabridge shares (SEA:TSX) gained 4% or C54c on Monday to close at $14.21, capitalising it at $907 million (US$640 million), while Golden Predator shares (GPY:TSXV) dipped 9% or 2c to 20c, capitalising it at $31.4 million (US$22.2 million).

 

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