The Nisga‘a and Tahltan First Nations announced the formation of the Treaty Creek Limited Partnership today, which will maximize the economic benefits and participation of the First Nations in the KSM mining project.
Seabridge Gold (TSX: SEA) owns and operates the KSM mining site which is situated in British Columbia’s resource-rich Golden Triangle. This mining operation will extract gold, copper, silver and molybdenum.
“Today we are bringing life to our long-standing relationship and historical memorandum of understanding by implementing those very provisions of the memorandum of understanding that are intended to improve the quality of life of our Nisg̱a’a and Tahltan people,” said Nisg̱a’a Nation President Eva Clayton.
Seabridge awarded over 30 major contracts worth $170 million, with $125 million committed for Indigenous affiliated businesses during 2022. Additionally, the KSM project created over 350 onsite jobs during that period.
The company has been involved in the project since 2001 and possesses a 100 per cent stake. To date, it has spent over $650 million on engineering, development and environmental work. Seabridge has proposed a $225 million budget for 2023 and is on track to start by July 28, 2026.
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New mine introduces over 1,550 jobs per year
Seabridge recently produced a feasibility study and preliminary economic assessment for the gold, copper, silver and molybdenum deposit. The company anticipates a 33-year open pit operation with an additional 39 years of underground mining. As such, the company intends on spending $225 million this year on construction.
British Columbia’s golden triangle is located in the northwest corner of the province, between the towns of Stewart and Dease Lake. The golden triangle intersects with the towns of Stewart, Dease Lake, Iskut, and Hyder in British Columbia. It also intersects with the Alaska border.
The Golden Triangle is home to several large-scale gold mining operations, including Seabridge Gold, Newcrest Mining (TSX: NCM) subsidiary Pretium Resources, and Imperial Metals (TSX: III). Other smaller gold mining companies that operate in the Golden Triangle include Skeena Resources (TSX: SKE), and Newmont Corporation(TSX: NGT) (NYSE: NEM) subsidiary, GT Gold.
Seabridge projects job creation of over 1,550 onsite jobs per year for the next five years. Additionally, that number goes up to 1,400 jobs once the mine is in full production. The company is still looking for a major operations partner for the mine.
“Together, we agreed to make our relationship an alliance. That has come to fruition with the creation of the Treaty Creek Limited Partnership, whereby the Nisga’a Nation and Tahltan Nation will combine forces to maximize joint opportunities on the Seabridge KSM Project,” said Chad Norman Day, president of the Tahltan Central Government.
Seabridge shares dipped $0.51 to close at $16.31 on the Toronto Stock Exchange.
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