Seabridge Gold’s Updated PFS for Courageous Lake Confirms Significantly Improved Project

16 January 2024

  • M&I GOLD RESOURCE INCREASES 38% TO 11 MILLION OZ

  • AFTER-TAX NPV (5%) OF US$523 MILLION, 20.6% IRR AND 2.8 YEAR PAYBACK

  • AISC OF US$999/OZ IN LOWEST QUARTILE OF WORLD GOLD COUNCIL COST CURVE

  • 12.6 YEAR MINE LIFE AVERAGING 201,000 OZS OF GOLD PRODUCTION PER YEAR

(January 16, 2024) Toronto, Canada … Seabridge Gold announced today the results of an updated Preliminary Feasibility Study (the “2024 PFS”) for its 100%-owned Courageous Lake project located in Canada’s Northwest Territories. The 2024 PFS all open pit mine plan shows a considerably more sustainable and profitable mining operation than its 2012 predecessor, with reduced initial capital, lower strip ratio, higher grade and smaller mine footprint.

The 2024 PFS led by Ausenco demonstrates the production of 2.5 million ounces of gold over the initial 12.6 year life of mine. A stand-alone analysis of the potential expansion below the 2024 PFS mine plan will be included as a Preliminary Economic Assessment (“2024 PEA”) forming a separate part of Technical Report (the “Report”) prepared in accordance with NI 43-101, and which includes evaluating the potential extension of the mine. The Report will be filed within the next 45 days.

Commenting on the study, Seabridge Chairman and CEO Rudi Fronk said: “We now have a second valuable 10 million plus ounce gold resource project in a safe jurisdiction. The project consists of an entire greenstone belt which has prospective shallow drill results and gold showings along its 54 km length. As we move towards a joint venture on our KSM project, we will be shifting our attention to Courageous Lake’s potential to generate considerable additional shareholder value.”

Mr. Fronk noted that the PEA establishes the potential for a much longer mine life. “The PFS uses less than 30% of the estimated M&I gold resource. The PEA includes inferred resource requiring more drilling as well as additional engineering work to qualify as a PFS. However, we are confident that the PEA reflects the potential for a greatly extended mine life and that the entire estimated M&I resource represents a meaningful call on gold for our shareholders.”

Notable improvements in the 2024 PFS compared to the 2012 PFS include:

  • 73% increase in after-tax NPV5% to US$523 million from US$303 million in 2012
  • 50% reduction in initial capital from US$1,522 million to US$747 million
  • Increased after-tax IRR from 7.3% to 20.6%
  • Reduced capital payback period from 11.2 years to 2.8 years
  • Average gold reserve grade increased 19% from 2.2 g/t to 2.6 g/t
  • Life of mine strip ratio reduced by 39% from 12.5 to 7.58
  • 38% increase in estimated measured and indicated gold resources from 8.0 million to 11.0 million ounces.

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