The government of British Columbia renewed Seabridge Gold’s (TSX: SEA) (NYSE: SA) license of operation (LoO) for an extra two decades for its Kerr-Sulphurets-Mitchell (KSM) project’s Mitchen Treaty Tunnels (MTT).
Announced on Thursday, the license allows Seabridge’s subsidiary, KSM Mining ULC, to remain in the area necessary to build and operate the MTT.
The MTT are two 23 km long parallel tunnels that will connect the east and west sides of the KSM Project Mine Site. The joint venture of Tudor Gold Corp, Teuton Resources Corp, and American Creek Resources Ltd. owns 11 mineral claims along approximately 12.5 km of the MTT route.
The license renewal has removed prior conditions that could have obstructed the project, particularly clarifying that KSMCo’s rights for the MTT take precedence over competing claims by Tudor Gold on the overlapping mineral claims. Furthermore, this adjustment in the license terms ensures that Seabridge can proceed with the project without facing legal interruptions from mineral rights disputes.
“We are pleased the renewed LoO provides greater clarity on the priority rights of KSMCo’s MTT across the Treaty Creek Project,” said Rudi Fronk, Seabridge’s chairman.
Seabridge Gold is actively advancing the KSM project, which holds significant reserves of gold, copper, silver, and molybdenum. Additionally, the project’s importance lies not only in its scale but also in its potential to create jobs and stimulate the regional economy.
The company’s environmental team has earned industry awards for their work on the KSM project, highlighting the project’s commitment to environmental and sustainable development. This subsequently aligns with the broader industry trend toward more sustainable mining practices.
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The subsidiary can construct temporary and long-term infrastructure
The license extension secures Seabridge’s operational plans and strengthens British Columbia’s reputation as a mining-friendly jurisdiction, provided projects meet strict environmental and community engagement standards.
KSMCo also holds two additional permits related to the MTT, including Mines Act permit M-245, which authorizes various activities. These include constructing MTT portals at the mine site, the tailing management facility, and the Treaty Saddle area.
The permit also allows KSMCo to build the MTT up to the first tunnel crosscut, about 100 meters from each portal. KSMCo is permitted to construct both temporary and long-term surface infrastructure at the Treaty Saddle area, located within the Treaty Creek Project mineral claims.
Although the Treaty Saddle area lies within the Treaty Claim Holders’ claims, the LoO grants KSMCo the right to occupy the area for constructing and operating the portals, the first 100 meters of the MTT, and the surface infrastructure.
In April 2024, KSMCo initiated the permit amendment process with the British Columbia Ministry of Energy, Mines, and Low Carbon Innovation (EMLI) to obtain approval for constructing the full length of the MTT.
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