KSM Project Update Brent Murphy Vice President, Environmental - - PowerPoint PPT Presentation

KSM Project Update

Brent Murphy Vice President, Environmental Affairs

November 6, 2014

SEABRIDGE GOLD

• Acquired by Seabridge in 2001
• Proposed gold and copper mine
• Located 65 km northwest of

Stewart, BC

• Business strategy: to partner

with a major mining company to develop the project

• Environmental Assessment

process initiated in March 2008, almost complete

2

About the KSM Project

SEABRIDGE GOLD

3

KSM is World Class

Source: Company data

• 2

4 6 8 10 12

• 10

20 30 40 KSM Donlin Pueblo Viejo Cerro Casale Boddington Caspiche Pascua-Lama Penasquito Conga Telfer El Morro Agua Rica Galore Creek Cu Reserves (B lbs) Au Reserves (M oz) Au Reserves Cu Reserves rves

KSM is a world class gold-copper project

SEABRIDGE GOLD

4

KSM Preliminary Feasibility Study

Unit Years 1-7 LOM 55-Year Plan Average Grades: Gold gpt 0.79 0.55 Copper % 0.23 0.21 Silver gpt 2.39 2.74 Molybdenum ppm 46.2 44.8 Average Annual Production: Gold

• z

851,000 508,000 Copper M lbs 195 147 Silver M oz 2.1 2.2 Molybdenum M lbs 1.3 1.1

PFS (2012) projects a long-life mine

SEABRIDGE GOLD

5

KSM Location

SEABRIDGE GOLD

6

SEABRIDGE GOLD

7

KSM Mitchell Zone

SEABRIDGE GOLD

8

KSM Kerr Deposit

SEABRIDGE GOLD

9

KSM Sulphurets Deposit

SEABRIDGE GOLD

10

KSM Iron Cap Deposit

SEABRIDGE GOLD

11

KSM Components

• KSM is similar when compared to other porphyry

mining projects in North America and the world

• Tunnels are similar in design to Granduc tunnel near

Smithers, BC

• Project location, including division of main work site by

several kilometers and connected by tunnels, similar to Los Pelambres in Chile

• Mitchel Pit is an average sized open pit, extending 400

metres beneath existing surface

SEABRIDGE GOLD

Production Rate

• KSM Project (proposed):

130,000 tpd

• Batu Hijau, Indonesia:

100,000 tpd

• Antamina, Peru:

130,000 tpd

• Escondida, Chile:

130,000 tpd

• Highland Valley Copper, Canada:

133,000 tpd

• Bingham Canyon Mine, Utah

150,000 tpd

• Los Pelambres, Chile:

170,000 tpd

• Chuquicamata, Chile:

182,000 tpd

• Grasberg, Indonesia:

240,000 tpd

12

SEABRIDGE GOLD

13

KSM Dams

• The KSM tailing dams have been designed by an internationally recognized engineering firm, checked

by an independent third party, and further examined by the BC Government regulatory bodies.

• The dams are specially designed to withstand floods and earthquakes. A dam of this type recently

withstood an 8.8 magnitude earthquake in Chile.

• After Mount Polley, and without prompting from government, KSM initiated a review by a panel of

independent engineers to further establish the safety of the tailing dam design.

• The water storage dam on upper Mitchell Creek is designed to hold mine contact water prior to

treatment and discharge and is not a tailings dam.

SEABRIDGE GOLD

14

KSM Environmental Assessment

SEABRIDGE GOLD

15

• March 2008: Entered BC Environmental Assessment;

process/working group meetings begin

• July 2009: Entered Federal Comprehensive Study process
• February 7, 2013: Submitted EA/EIS Application to BC EAO

and CEAA

• August 12, 2013: EA/EIS Application accepted into the official

review period

• July 21, 2014: Comprehensive Study Report is published and

30 day public comment period begins

• July 30, 2014: Received approval

from Province of BC

• August 20, 2014: Comment period

closes and CSR is referred to Federal Minister

Environmental Assessment: Key Dates

SEABRIDGE GOLD

16

Environmental Assessment: CAN/US

SEABRIDGE GOLD

1.

Water

2.

Fish and aquatic habitat

3.

Wetlands

4.

Wildlife

5.

Human health

6.

Heritage

7.

Social

8.

Terrain and soils

9.

Vegetation

• 10. Air quality and climate

change

• 11. Visual and aesthetic

resources

• 12. Noise
• 13. Land use

17

60 valued components under 13 headings

What did we study?

SEABRIDGE GOLD

18

Protecting Fish and Aquatic Life

• Guiding Design Principle: protection
• f the environment including

downstream waters and fish-bearing habitats

• Extensive environmental and technical

evaluations by independent experts

• ver seven years

SEABRIDGE GOLD

19

Protecting the Water

• Water quality is naturally poor due to acid rock drainage and glacier

melt

• Potentially acid generating tailings material will be stored in a lined

facility and isolated

• Water quality predictions indicate improved water quality in the Unuk

River for many total metals

• Selenium concentrations will not exceed baseline concentrations and

will continue to meet BC Water Quality Guidelines at the BC-Alaska border

SEABRIDGE GOLD

20

Water Quality Guidelines: BC and Alaska

Substance Drinking Water Aquatic Life for Fresh Water Chronic Aquatic Life for Marine Water Chronic

Alaska BC Alaska BC Alaska BC Arsenic 10µg/l 25µg/l 150µg/l 5µg/l 36µg/l 12.5µg/l Copper

• 500µg/l

Depends on hardness of water 4.8µg/l 2µg/l Cyanide 200µg/l free CN 200µg/l (SAD CN plus thiocyanate) 5.2µg/l (free CN) 5µg/l (WAD CN) 1µg/l (free CN) 1µg/l (WAD CN) Mercury 2µg/l 1µg/l 0.77µg/l 0.20µg/l dependent on concentration of MeHg 0.94µg/l 0.02µg/l dependent on concentration of MeHg Selenium 50µg/l 10µg/l 5µg/l 2µg/l 71µg/l 2µg/l

There are differences in the way Alaska/EPA and BC calculate concentrations. Therefore, this table represents a best effort to directly compare the standards of the two distinct jurisdictions.

SEABRIDGE GOLD

21

SEABRIDGE GOLD

22

Mitchell Creek McTagg Creek

SEABRIDGE GOLD

23

Sulphurets Creek Gingras Creek Mitchell Creek

SEABRIDGE GOLD

24

Sulphurets Creek Unuk River

SEABRIDGE GOLD

What is Social License?

• “Social license” generally refers to a local community’s

acceptance or approval of a company’s project or ongoing presence in an area.

• The development of social license occurs outside of formal

permitting or regulatory processes, and requires sustained investment by proponents to acquire and maintain social capital within the context of trust-based relationships.

• Social license can be realized through a robust suite of

actions centered on timely and effective communication, meaningful dialogue, and ethical and responsible behavior.

~Brian F. Yates and Celesa L. Horvath, Social License to Operate: How to Get It, and How to Keep It. 2013 Summit Working Papers.

25

SEABRIDGE GOLD

Regulatory Approval

CEAA Comprehensive Study Report:

“The Agency concludes that the project is not likely to cause significant adverse environmental effects, taking into account the implementation of mitigation measures described in this comprehensive study report.” “The agency is satisfied that identified mitigation measures for the project would address potential impacts in Alaska on fish; recreational and commercial fisheries and human health from changes to water quality and quantity in the Unuk River.”

BC Government Press Release:

“The ministers have issued the certificate with legally-enforceable conditions that have given them the confidence to conclude that the project will be constructed, operated and decommissioned in a way that ensures that no significant adverse effects are likely to occur.”

Representative from Alaska Department of Natural Resources:

“Four of the same resource managers and specialists who review Alaskan mines have examined KSM’s plan. They found no significant issues with the applications.” – Juneau Empire, April 11th, 2014

26

SEABRIDGE GOLD

Social License: Treaty and First Nations

• Entered into a Benefits Agreement with the Nisga’a Nation

including their support of the Project – June 2014

• Signed agreement with Gitanyow Nation – June 2014
• Gitxsan First Nation sent letter of support (July 2013):

“…we have found them to be open, honest and transparent. It is clear to us Seabridge is committed to the community, to First Nations and to Gitxsan people.”

• Discussions with remaining Nations

have been initiated

• Funded the participation of Treaty and
• First Nations within the environmental

assessment review process

27

SEABRIDGE GOLD

Social License: Communities

• Received support letters from the City of Smithers

(September 2013) and the City of Terrace (October 2013)

• Seabridge invests in skills development. $100,000 each to:
• AMTA to fund delivery of an

essential skills upgrading program in three northwest Aboriginal communities (January 2012)

• Northwest Community College for

a mobile trades training unit (January 2013)

• Northwest Community College

for their Intro to Trades 10 program (January 2014)

28

SEABRIDGE GOLD

Engagement in Alaska

29

Note: Seabridge has funded the State of Alaska’s involvement in the KSM environmental assessment review process

SEABRIDGE GOLD

Engagement in Alaska

30

SEABRIDGE GOLD

KSM Project Recent News and Next Steps

31

Recent News

• Received provincial environmental assessment (EA) approval

(July 2014)

• Received four early-stage construction permits (October 2014):

1.

Construct and use roads along Coulter Creek and Treaty Creek

2.

Build construction camps

3.

Begin early stage construction activities

4.

Right-of-away for the proposed tunnel

Next Milestones

• Federal EA approval (anticipated by the end of November 2014)
• Key financing and partnerships
• More than 100 permits necessary for operation

SEABRIDGE GOLD

Remaining a Good Neighbour

32

1.

KSM design was developed with the guiding principle of protecting the environment including downstream water quality and aquatic life

2.

Safe and responsible operation

• Will remain compliant with applicable regulatory

standards

• Will not impact US waters

3.

Continue to be open and honest with Alaskans (and all stakeholders)

SEABRIDGE GOLD

33

Thank You

Brent Murphy, VP Environmental Affairs 867.445.5553 brent@seabridgegold.net

KSM Project