British Columbia renews Seabridge’s KSM licence of occupation for 20 years
The government of British Columbia has renewed the licence of occupation for Seabridge Gold’s Kerr-Sulphurets Mitchell (KSM) copper-gold project for a further 20 years, granting the company clarity on the land where it plans to build the Mitchell Treaty tunnels (MTT).
With proven and probable reserves containing 47.3 million oz. gold, 7.3 billion lb. copper and 160 million oz. silver, KSM is one of the largest deposits of its kind and is ranked as the largest gold project in the world.
The licence gives Seabridge subsidiary KSM Mining ULC the right to occupy the area in which it intends to construction the MTT, consisting of two, 23-km-long parallel tunnels planned to connect the east and west sides of the KSM mine site.
The MTT route passes through 11 mineral claims owned by a joint venture of Tudor Gold (TSXV: TUD), Teuton Resources (TSXV: TUO) and American Creek Resources (TSXV: AMK). The new licence replaces the one granted in 2014, which included the words “subject to the prior rights” of the holder of the 11 mineral claims owned by the joint venture.
The licence removes that phrase as it served no purpose, and further obstructs the three partners from obstructing, endangering or interfering with KSM Mining’s activities regarding the MTT project. The new licence grants no interest in the minerals within the licence to Seabridge or its subsidiary.
“We are pleased the renewed LOO provides greater clarity on the priority rights of KSMCo’s MTT across the Treaty Creek project Seabridge chair And CEO Rudi Front commented. “Furthermore, the renewal is for a 20-year term whereas the previous LOO was for 10 years.
“Seabridge continues to invite Tudor to enter into discussions with us on how we may be able to accommodate the progression of the Treaty Creek project while constructing and operating our MTT,” he noted.
In addition to the licence, KSM Mining holds two additional permits associated with the MTT. The Mines Act permit M-245 currently authorizes the company to conduct various activities, including both temporary and long-term surface infrastructure, construction of all portals, and a tailings management facility.
Tudor’s response
However, Tudor Gold, as operator of the JV whose mineral rights cross the MTT, said in a follow-up release that section 50(1)(a)(ii) of the Land Act restricts any disposition of Crown lands, including this licence of occupation, from interfering with mineral tenure rights, citing government documents.
It also took the position that the Mineral Tenure Act cannot grant mineral title rights to any party and cannot interfere in any way with pre-existing rights. This applies to both conditional mineral reserve grants and non-staking mineral reserve grants.
The “prior rights” of the Treaty project claim holders are subject to a conditional mineral reserve established in 2012. Seabridge’s licence was previously granted in 2014 and is up for renewal this month.