Seabridge Gold Inc. announced that the Ministry of Mining and Critical Minerals of British Columbia has postponed its decision to issue permit amendments for the construction and operation of the Mitchell Treaty Tunnels (MTT) that connect the KSM Project’s mining and processing sites. The delay follows a legal challenge from Tudor Gold Corp. that questions whether Seabridge’s conditional mineral reserve applies to Tudor’s mineral claims intersecting the tunnel route.
The MTT will extend approximately 12.5 kilometres through Tudor Gold’s mineral claims. Seabridge holds a Licence of Occupation for the full tunnel route and authorisations for the tunnel portals and about 100 metres of tunnel length at each portal. Tudor’s challenge focuses on the application of Seabridge’s conditional mineral reserve to its pre‑existing claims, a dispute that the Ministry has decided to defer until the legal matter is resolved.
Seabridge Chair and CEO Rudi Fronk said, "We are confident that the CMR is a means by which the BC government can legally reserve land for construction of infrastructure like the MTT over government owned lands, including lands subject to third‑party mineral claims such as Tudor's. KSM has been determined to be in the best interests of the Province of BC on numerous occasions." He added, "We applaud Tudor's decision to abandon its appeal, which lacked any merit from the outset. This action reinforces our position that the authorisations issued in favour of the MTT do not give Seabridge any interest in Tudor's mineral rights." Fronk also noted the company would negotiate an "amicable solution" if Tudor receives approval for its Goldstorm Project mine plan, but said moving the tunnel route before Tudor defines its project "makes no sense."
The delay is expected to push back the KSM project’s development schedule, as Seabridge does not plan to commence tunnel construction until a Final Feasibility Study is completed. The postponement could extend the timeline for securing a major mining partner and may affect the projected start of production, adding uncertainty to the project’s long‑term economics.
The announcement was met with a muted market reaction, reflecting uncertainty over the project’s timeline and the potential impact of the legal dispute on Seabridge’s development milestones.
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