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![Support of Treaty and First Nations
NISGA'A NATION AND SEABRIDGE GOLD CONFIRM
AGREEMENT IN PRINCIPLE ON KEY ELEMENTS OF KSM
BENEFITS AGREEMENT
August 2013
"Seabridge has demonstrated a real willingness to assist the
Nisga'a Nation in creating genuine economic opportunities for, and
building the capacity of, Nisga'a citizens, [and] we look forward to
continuing our participation in the environmental assessment
process for the KSM Project.“
- Mitchell Stevens, President of the Nisga’a Nation
SEABRIDGE GOLD
19](https://image.slidesharecdn.com/seabridgecorppresfeb2014-140203113458-phpapp01/85/Seabridge-Corporate-Presentation-February-2014-19-320.jpg)
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Seabridge Corporate Presentation - February 2014
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- 2. Forward Looking Statements Allreserve and resource estimates reported by the Company were calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral resources which are not mineral reserves do not have demonstrated economic viability. Statements relating to the estimated or expected future production and operating results and costs and financial condition of Seabridge, planned work at the Company’s projects and the expected results of such work are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: expects, plans, anticipates, believes, intends, estimates, projects, assumes, potential and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur. Information concerning exploration results and mineral reserve and resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable at the time they are made, are inherently subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfill projections/expectations and realize the perceived potential of the Company’s projects; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold reserves and resources; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of environmental issues at the Company’s projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and other government requirements; fluctuations in the price of gold and other risks and uncertainties, including those described in the Company’s Annual Information Form filed with SEDAR in Canada (available at www.sedar.com) for the year ended December 31, 2012 and in the Company’s Annual Report Form 40-F filed with the U.S. Securities and Exchange Commission on EDGAR (available at www.sec.gov/edgar.shtml). Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management or its independent professional consultants on the date the statements are made. SEABRIDGE GOLD 2
- 3. The Case forSeabridge Proven and Probable Reserves • 44.7M oz Au • 10B lbs Cu Low Share Dilution • 47.1M shares outstanding Low Valuation Low Political Risk Exploration Upside SEABRIDGE GOLD • $8 enterprise value per ounce of gold reserves • All reserves are located in Canada • New discoveries could add significant higher grade reserves to improve project economics 3
- 4. Gold Reserves Reservesrank Seabridge among world’s top ten gold companies Gold Reserves (M oz) 150 120 90 45M oz 60 Alamos AuRico Buenaventura Polymetal Osisko Gabriel Allied Nevada Detour New Gold Agnico-Eagle NovaGold Yamana Seabridge Kinross Goldcorp Anglogold Polyus Newcrest Newmont - Barrick 30 Source: Company data. Data as of January 27th, 2014. Note: Companies shown include North America’s largest gold companies and selected gold project development companies. SEABRIDGE GOLD 4
- 5. Low Share Dilution 1.20 0.95oz/share 1.00 0.80 0.60 0.40 New Gold Alamos Osisko Polymetal Gabriel Polyus AuRico Yamana Buenaventura Kinross NovaGold Goldcorp Agnico-Eagle Detour Newcrest Allied Nevada Barrick Anglogold - Newmont 0.20 Seabridge Gold Reserves per Common Share Seabridge ranks 1st in reserves/share among leading gold companies Source: Company data. Data as of January 27th, 2014. Note: Companies shown include North America’s largest gold companies and selected gold project development companies. SEABRIDGE GOLD 5
- 6. Low Share Dilution(cont.) Resources have grown more than 10x faster than shares outstanding 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 Ounces of Gold (Millions) 90 10 - 2003 2004 Proven & Probable Gold Reserves 2005 2006 2007 2008 Measured & Indicated Gold Resources 2009 2010 2011 Inferred Gold Resources 2012 Shares Outstanding (Millions) 90 - Common Shares Outstanding Source: Company data. Data as of January 27th, 2014. Note: For a breakdown of Seabridge’s mineral reserves and resources by project, tonnes and grade, please visit http://seabridgegold.net/resources.php SEABRIDGE GOLD 6
- 7. Attractive Valuation $500 $400 $300 $200 Allied Nevada Gabriel NovaGold Detour Kinross Polyus Anglogold Newcrest AuRico Newmont NewGold Barrick Osisko Alamos Goldcorp Yamana Agnico-Eagle Buenaventura - Seabridge $8/oz $100 Polymetal Enterprise Value per Reserve oz Seabridge has a very low enterprise value per ounce of gold reserves Source: Company data. Data as of January 27th, 2014. (1) Enterprise Value calculated as market capitalization (basic) plus net debt and minority interest Note: Companies shown include North America’s largest gold companies and selected gold project development companies SEABRIDGE GOLD 7
- 8. Low Political Risk Where would you rather be? Peru Argentina Ecuador Indonesia Chile Canada SEABRIDGE GOLD • Illegal strikes and local opposition delay approved projects (Conga, Santa Anna, Tintaya) • Open pit mining and use of cyanide banned in certain areas • 100% tax on export earnings for some resource projects (Famatina, San Jose) • Increased taxes and royalties (Fruta del Norte) • Creeping expropriation through imposed local and government ownership (Batu Hiju, Grassberg, Tujuh Bukit) • Increased royalty structure and challenging power supply issues (all projects) • Local opposition delays approved projects (El Morro, Pascua-Lama) • Stable regulatory and tax regime 8
- 9. Kerr, Sulphurets andMitchell • Kerr, Sulphurets and Mitchell • • • • • • (“KSM”), is the world’s largest undeveloped gold/copper project (by reserves) Located in “mining friendly” British Columbia near past producers Highly favorable logistics Estimated cash costs and total costs well below current industry averages Base Case exhibits outstanding capital efficiency Environmental Assessment approval expected mid 2014 Nearing completion of Impact Benefit Agreement with key Treaty Nation SEABRIDGE GOLD 9
- 10. 0 40 40 40 40 20 20 20 10 - --- Source: Company data. SEABRIDGE GOLD Au Au Reserves Cu Cu Reserves Au Reserves Cu Reserves Reserves Cu Reserves 12 10 30 30 30 8 20 6 4 - 10 10 10 10 10 10 8 88 8 6 66 6 4 44 4 2 Cu Reserves (B lbs) Cu Reserves (B lbs) Cu Reserves (B lbs) Cu Reserves (B lbs) 0 KSM Pueblo Viejo KSM KSM KSM Donlin Cerro Casale Donlin Donlin Donlin Pueblo Viejo Boddington Pueblo Viejo Pueblo Viejo Pueblo Viejo Cerro Casale Caspiche Cerro Casale Cerro Casale Cerro Casale Boddington Pascua-Lama Boddington Boddington Boddington Caspiche Penasquito Caspiche Caspiche Caspiche Pascua-Lama Conga Pascua-Lama Pascua-Lama Pascua-Lama Penasquito Telfer Penasquito Penasquito Penasquito Conga Morro ElConga Conga Conga Telfer Agua Rica Telfer Telfer Telfer El Morro Galore Creek El Morro El Morro El Morro Agua Rica Agua Rica Agua Rica Agua Rica Galore Creek Galore Creek Galore Creek Galore Creek 0 Donlin 30 Au Reserves (M oz) Au Reserves (M oz) Au Reserves (M oz) Au Reserves (M oz) 0 Au Reserves Cu Reserves (B lbs) KSM KSM is World Class! KSM is a World Class Gold-Copper Project 12 12 12 12 10 2 22 2 - -- - 10
- 11. KSM – FavorableLogistics SEABRIDGE GOLD 11
- 12. KSM – MitchellZone SEABRIDGE GOLD 12
- 13. KSM – ProjectLayout SEABRIDGE GOLD 13
- 14. KSM – PreliminaryFeasibility Study The PFS projects a large, long-life mine 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 44.8 851,000 508,000 Average Annual Production: Gold oz Copper M lbs 195 147 Silver M oz 2.1 2.2 Molybdenum M lbs 1.3 1.1 SEABRIDGE GOLD 14
- 15. KSM – PFSPre-Tax Summary 50+ year mine plan Unit Base Case Alternate Initial Capital Cost $M $5,300 $5,300 $5,300 Net Cash Flow $M $20,500 $16,800 $31,200 NPV @ 5% $M $4,500 $3,500 $7,700 Internal Rate of Return % 11.5% 10.4% 14.7% Payback Period years 6.2 6.7 5.2 Operating Costs (LOM) $/oz Au $141 $263 $60 Total Costs (includes all capital) $/oz Au $598 $720 $535 May 2012 Spot Metal Prices: Gold $/oz $1,330 $1,320 $1,650 Copper $/lb $3.45 $3.00 $3.75 Silver $/oz $25.20 $25.60 $32.00 Molybdenum $/lb $15.00 $15.00 $15.00 0.96x 0.96x 1.00x US$/Cdn$ Exchange Rate - Note: For Operating and Total Costs, copper, silver and molybdenum revenues are taken as a by-product credits. SEABRIDGE GOLD 15
- 16. KSM – EAReview Timeline SEABRIDGE GOLD 16
- 17. KSM Working GroupMeetings Since 2008 Seabridge has been engaged with a working group consisting of Treaty and First Nations and Canadian and U.S. Regulators SEABRIDGE GOLD 17
- 18. Earning our SocialLicense Treaty/First Nation Support • Seabridge has reached an agreement in principle on key elements of Benefits Agreement with the Nisga’a Nation Employment Training • Seabridge continues to support the training of the local labour force Local Community Support • Seabridge has received the support of the Mayor and Councils of Smithers and Terrace for the development of the KSM Project SEABRIDGE GOLD 18
- 19. Support of Treatyand First Nations NISGA'A NATION AND SEABRIDGE GOLD CONFIRM AGREEMENT IN PRINCIPLE ON KEY ELEMENTS OF KSM BENEFITS AGREEMENT August 2013 "Seabridge has demonstrated a real willingness to assist the Nisga'a Nation in creating genuine economic opportunities for, and building the capacity of, Nisga'a citizens, [and] we look forward to continuing our participation in the environmental assessment process for the KSM Project.“ - Mitchell Stevens, President of the Nisga’a Nation SEABRIDGE GOLD 19
- 20. Gitxsan Summit Seabridgecontinues to meet with and inform Treaty and First Nations on the local benefits that will be derived from the KSM Project. SEABRIDGE GOLD 20
- 21. Employment Training Seabridgecontinues to support employment training within local communities for job skills that will be required at KSM SEABRIDGE GOLD 21
- 22. Terrace Open House Open and continued dialogue has resulted in the endorsement of Seabridge and KSM by local communities SEABRIDGE GOLD 22
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- 24. N KERR ZONE Plan Viewand Cross Section Index 31 Oct. 2013 A K-13-34 A’ K-13-31 K-13-24 Conceptual Pit Limits (Mar. 2012) Hole trace histograms Hole trace histograms: Red = Au assays Green = Cu assays 400m SEABRIDGE GOLD S 24
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- 30. Courageous Lake • At6.5M oz, Courageous Lake (“CL”) is Canada’s 2nd largest undeveloped gold reserve (KSM is 1st) • Excellent open pit grade of 2.2 gpt Au – More than twice the grade of Osisko and Detour Gold’s new mines • Recently completed Preliminary Feasibility Study shows viable project with exceptional leverage to higher gold prices • Wholly owned 53 km greenstone belt provides excellent exploration potential • Located in Northwest Territories within 100 km of Diavik and Ekati, two large operating open pit diamond mines SEABRIDGE GOLD 30
- 31. Courageous Lake –Project Location • Project located on winter ice road, in close proximity to the Diavik and Ekati mines – Demonstrating that year round open pit bulk tonnage operations are feasible • Nearby mines provide “real-time” estimates for capital and operating costs – Additionally, with mines scheduled to close over the next several years, a local and trained workforce will be readily available SEABRIDGE GOLD 31
- 32. Courageous Lake –2012 PFS (July 2012) Exceptional leverage to gold price Case Unit Base Alternate Gold Price $/oz $1,384 $1,925 Initial Capital Cost $M $1,520 $1,520 Mine Life years 15.0 15.0 Average Annual Gold Production ounces 385,000 385,000 Net Cash Flow $M $1,507 $4,519 NPV @ 5% $M $303 $2,080 Internal Rate of Return % 7.3% 18.7% Payback Period years 11.2 4.0 Operating Costs (years 1-5) $/oz Au $674 $689 Operating Costs (LOM) $/oz Au $780 $796 Total Costs (includes all capital) $/oz Au $1,123 $1,141 US$/Cdn$ Exchange Rate - 0.98x 0.99x SEABRIDGE GOLD 32
- 33. CL – ValueEnhancing Opportunities Improve Capital and Operating Costs • Access to hydro-electric generated power • Examine year round road access opportunities Higher Grades • Exploring for higher grade material that could be exploited in the early years of production • History of high grade production along belt Additional Deposits • Exploring for additional bulk mineable deposits that could extend project life beyond the current 15 year estimate SEABRIDGE GOLD 33
- 34. Courageous Lake –Exploration Potential • Existing 6.5M oz reserve covers only 2 km of an under explored greenstone belt that stretches 53 km – Owned 100% by Seabridge • Two former producing mines on belt (Salmita and Tundra) had average grades of ~1 opt Au (30 gpt) • Seabridge now exploring for additional deposits that could extend the estimated 15 year mine life – With potentially higher grades mined in early years SEABRIDGE GOLD 34
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- 36. Catalysts for Success JointVentures Exploration Success EA/EIS Approval • Advancing through environmental approval and permitting process • Approval expected mid 2014 SEABRIDGE GOLD • Pursuing exploration opportunities that will improve project economics • $16M committed for follow-up drilling at Deep Kerr and to test other potential higher grade core targets • Projects being de-risked to drive joint venture terms • IBA negotiations proceeding with Treaty and First Nations • Transactions dependent on improved market conditions 36
- 37. Corporate Information Listings Share Structure BalanceSheet Management and Board Financial Institutions Strategic Investors SEABRIDGE GOLD • NYSE: SA • TSX: SEA • Included in GDXJ • 47.1M shares outstanding • 49.9 M fully diluted • No debt • More than C$30M in working capital • Interests are aligned with shareholders • Insiders own over 30% of common shares • Own ~35% of common shares • Investors include Friedberg Mercantile, Royce, Van Eck, Weiss • Royal Gold (holds option to acquire NSR at KSM for $160 million in cash) 37
- 38. Experienced Management Rudi Fronk •Over 30 years of experience in the gold business, primarily as a senior officer and director of publicly traded companies including Greenstone Resources, Columbia Resources, Behre Dolbear & Company, Riverside Associates, Phibro-Salomon, Amax, and DRX Jay Layman • Over 30 years of experience in the mining sector and responsible for designing and managing the technical programs required to advance Seabridge's two main assets towards feasibility • Former Vice President of Solutions and Innovation for Newmont Mining Company Co-Founder, Chairman & CEO Director, President & COO Bill Threlkeld Senior VP, Exploration Peter Williams Senior VP, Technical Services Christopher Reynolds VP, CFO Brent Murphy VP, Environmental Affairs Bruce Scott VP, Corporate Affairs SEABRIDGE GOLD • Over 30 years of exploration experience and is responsible for the design and execution of Seabridge’s exploration and resource delineation programs • Previously served as Exploration Manager and Vice President with Placer Dome • Over 30 years of experience in mine engineering, design, strategic analysis and start-up • Formerly a Group Executive, Mine Engineering at Newmont Mining Corporation • Has 20 years of mining industry and public accounting experience and has been a CGA since 1994 • Currently a director of Paramount Gold and Silver • Over 25 years of experience, Mr. Murphy is responsible for developing and managing Seabridge's environmental programs and community engagement strategies • Has practiced law in the areas of corporate finance and securities, corporate and mining since 1993 and has been counsel to Seabridge Gold since 1999 38
- 39. Board of Directors FrederickBanfield • Founder and Chairman of Mintec, Inc. and one of the original developers of MineSight™, recognized as the pre-eminent reserves modeling and mine design software system with more than 300 installations worldwide Scott Barr • Over 45 years of mining related experience, predominately in senior technical project management and operational roles, including Newmont and Freeport Thomas Dawson Chairman of Audit and Nomination Committees • Over 40 years of accounting experience including senior audit partner with Deloitte Touche Louis Fox • Over 25 years experience in precious metals trading, merchanting and merchant banking activities including J. Aron & Co,, Goldman Sachs and Gerald Metals Eliseo Gonzalez-Urien • Over 30 years of experience, Mr. Gonzalez-Urien is one of the most highly regarded exploration geologists in the mining industry. Ran global exploration for Placer Dome from 1989 through 2001 Richard Kraus SEABRIDGE GOLD • Currently serves as the Executive Chairman of The RMH Group, Inc. • Former CEO (and previously COO and CFO) of Echo Bay Mines 39