SOMBA K'E/YELLOWKNIFE - Seabridge Gold's spending on its Courageous Lake gold project near Yellowknife accounted for more than 20 per cent of overall exploration spending in the NWT this year.

Buoyed by the high price of gold, Seabridge Gold spent $20 million to develop its Courageous Lake gold project, located 240 km northeast of Yellowknife, this year. - photo courtesy of Seabridge Gold Inc.

"It's by far the biggest gold project in the Northwest Territories, " said Rudi P. Fronk, president and CEO of Seabridge Gold, of the project, located 240 km northeast of Yellowknife.

"This year, we spent approximately $20 million at site. It was a big commitment."

At its peak this summer, the project boasted a total of 60 people on site, with several residents from the Tlicho region as well as members of the Yellowknives Dene First Nation serving as camp labourers, core cutters and driller's helpers.

Training opportunities allowing Northerners to gain technical skills – which will in turn enable them to take on positions of higher responsibility – are a possibility, said Fronk.

"All of our logistical work was being done by Matrix (Aviation Solutions). They've worked with us in the past not only at Courageous Lake but also at (our) KSM (gold project in Vancouver). We're using EBA (Engineering) Consultants on some of the baseline environmental work."

The project's preliminary economic assessment, released in 2008, said Courageous Lake's estimated resource – 4.2 million ounces in measured and indicates gold ounces, with an additional 6 million in inferred ounces – is enough to sustain an 11 and a half year mine life.

"The next updated preliminary assessment should come out (in March) 2011, and then the preliminary feasibility study should some out at the end of (the first quarter) in 2012," said Fronk.

At the same time it updates the preliminary assessment, Seabridge also hopes to file its project description with the Mackenzie Valley Environmental Impact Review Board.

"The permitting process really does begin when you file the project description document, in terms of putting you in the queue," said Fronk.

The company is planning more drilling, engineering work and further baseline environmental data collection for Courageous Lake next year.

"In order and magnitude, we're probably looking at a similar-sized program in 2011," said Fronk.

Unlike another company developing a Yellowknife-area gold project, Tyhee Development Corp., Seabridge is not reporting any difficulty raising cash to finance its programs.

"Not at all," said Fronk. "Earlier this year, we raised $65 million ... We banked enough dollars to get us through the pre-feasibility study."

Seabridge's share price stood at $27.45 as of Monday.

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