Silver Grail Resources

stewart region news

April 2008

World-Class Gold-Copper-Silver Mine to be Developed at Seabridge Gold's KSM Property

Seabridge Gold (“SEA” – TSX Venture Exchange; “SA” – Amex) recently announced plans to develop a world-class gold-copper-silver mine at its 100% owned KSM Property, located about 60 km north of Stewart , BC and immediately adjacent to Teuton Resources Corp.'s Treaty Creek Property. The KSM mining project is in an early planning stage, with the project currently under review by the BC Government. The company has also recently started consultations with local First Nations. Seabridge Gold anticipates construction of the mine to begin in 2011 with production starting in 2015.

The project plan envisages a bulk tonnage operation at the KSM Property, with 80,000 to 120,000 metric tonnes per day of ore extracted from three open pits. Ore would be transported by conveyor belt that would travel through a tunnel under Teuton's Treaty Creek Property to a processing plant immediately east of Teuton's Treaty Creek Property. There, ore would be processed into a combined gold/copper/silver concentrate and then be trucked to the deep sea port of Stewart where it would be loaded onto ships and sent overseas for smelting. A tailings impoundment with two tailings dams would store mine waste just east of the processing plant. A 12-km access road to the processing plant would be constructed along the low-lying ground next to Teigen Creek linking in with Highway 37. Another access road would be constructed to link the KSM Property and the open pit mines with Highway 37. This road would follow Sulphurets Creek and the Unuk River to the currently producing Eskay Creek Mine, where an existing access road connects with Highway 37. These plans are shown in the map below.

Capital costs for the project are expected to be between $2.5 to $3.5 billion. Once project planning is finalized and approved by regulatory agencies, Seabridge intends to sell the project or partner with another company for financing. The mine is expected to be operational for 30 years and to employ 500 people on a year-round basis.

The planning of a major mining project at Seabridge's KSM Property is extremely exciting news for Teuton Resources Corp. As shown in the map, Teuton's Treaty Creek property will be in the centre of the mining activity at KSM. The haulage tunnel will be constructed under Treaty Creek with access roads, a processing plant, and tailings impoundment all on Treaty Creek's doorstep. Mineralization in the area trends northeast and later in 2008 Seabridge Gold intends to test for continuity of mineralization between the Mitchell Deposit and the Iron Cap Zone, which is northeast of the Mitchell Deposit and very close to the boundary between the Treaty Creek and KSM properties.

Drilling by American Creek (“AMK”) in 2007 established that gold-copper mineralization very similar to the KSM deposits exists at Treaty Creek. American Creek holds the property under option from Teuton, in a deal whereby it can earn a 51% interest by expending $5million over 3 years. American Creek plans a minimum 10,000 metre program at Treaty Creek in 2008, to complement the 15,000 metres that Seabridge has announced for the same period.

The KSM Project is one of the world's largest gold/copper projects, with over 34 million ounces of gold (including indicated and inferred resources) and over 8.1 billion pounds of copper (including indicated and inferred resources).

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