A POSITIVE IMPACT FOR THE SULPHURETS HYDROTHERMAL SYSTEM On Friday December 4th, Seabridge Gold (SEA) announced its intentions to purchase the Snowfield deposit from Pretium Resources (PVG), details here. As a result, we experienced a high volume of emails and calls as to how this may affect Treaty Creek. In our opinion, we think it’s a positive move for all three projects located in the Sulphurets Hydrothermal System. Our analysis of the transaction and the associated benefits is as follows: Below is an image created by Seabridge showing the KSM and Snowfield deposits and the relative gold grades/value of those deposits. Technically, the Snowfield is the top part of the Mitchell deposit, which it sits beside. ![]() ![]() We think this a great deal for Treaty Creek (TC) shareholders (TUD, AMK, TUO) because anything that improves Seabridge’s chances of going into production is potentially beneficial to us: The only route for the KSM to go into production is through the use of the MTT which closely follows both the Kyba Line and the Sulphurets Thrust Fault through most of TC (this is the most heavily mineralized trend though TC including the Perfect Storm (PSZ), the Goldstorm (GS), and orpiment (GS2) zones as seen on the image above. If SEA is able to find a route through TC without disturbing potential deposits then it will build important infrastructure (bridge, roads, power, etc.) right onto TC. If SEA isn’t able to find a route through TC without disturbing potential deposits then SEA potentially will form an agreement with TC owners (benefiting TC shareholders) followed by building important infrastructure right onto TC. A second mine, especially one of this magnitude, going into production within the Sulphurets Hydrothermal System will undoubtedly capture the attention of investors and mining companies and shine a spotlight on the third project advancing in the same system; Treaty Creek. The $3 USD per ounce paid for the Snowfield was a good deal for both companies and has no real bearing on potential insitu gold deposits and associated valuations at TC. It’s all a question of grade, logistics, and potential buyers. The Snowfield has low grade, horrible logistics (to be developed on its own) and potential for only one buyer (SEA). TC sits “on the right side of the mountain” only 20km away down a valley from the highway and the cheapest power in the world. The Goldstorm zone also has its highest gold grades right at surface (300 zone) over a very extended area opposed to dipping steeply into the ground. The logistics, and therefor potential Cap-X and Op-X, are completely different at TC vs both the Snowfield and the KSM. In conclusion, we believe that the Snowfield purchase by Seabridge will positively impact every company located within the Sulphurets Hydrothermal System. We view this as another very positive development in the rapid progression of Treaty Creek’s development. -Kelvin Burton |