Seabridge Gold's KSM Project Greenlighted By Canada's Federal Government
Seabridge Gold got an early Christmas present last Friday when its British Columbia-based KSM project got the go-ahead from Canada's federal government. According to Chairman and CEO Rudi Fronk, the next step for the company will be to find a partner.
Seabridge Gold (TSX:SEA,NYSE:SA) got an early Christmas present last Friday when its British Columbia-based KSM project got the go-ahead from Canada's federal government. Leona Aglukkaq, minister of the environment, the Canadian Northern Economic Development Agency and the Arctic Council, said in a statement that the project "is not likely to cause significant adverse environmental effects when the mitigation measures described in the Comprehensive Study Report are taken into account." The company has been moving towards this point since 2009, and this past summer took a big step forward when it received an Environmental Assessment Certificate from the BC government. However, it hit a bit of bump following the tailings pond breach at Imperial Metals' (TSX:III) copper-gold Mount Polley mine. "Definitely Mount Polley slowed down the federal approval," said Rudi Fronk, chairman and CEO of Seabridge. "Originally we were expecting to have it sometime in October. However, with the Mount Polley situation, the government decided to extend the public review period." That said, he's not too bothered by the delay. "One of the good things about Mount Polley [is that] it really did give us a chance to get out in front of people and explain our tailings management design. It gave us a chance to actually show how robust our design is." In terms of what's next for Seabridge, Fronk said that while the company already has early stage construction permits from the BC government, construction is not its first priority. "Our next big step will be to find a partner that's going to build this project with us. This is a project that is of such a scale that there are very few companies in the world that have the financial and the technical resources to build a mine this size, and we're definitely not one of them, as we've said all along," he explained.