Seabridge Gold has received a renewed license from the government of British Columbia, Canada, for the tunnels it intends to build to transport ore from the pits of its KSM project to the plant.

The License of Occupation for the Mitchell Treaty Tunnels is valid through September 2044, while the original license was due to expire this month.

The license will allow the company to build two 23km long parallel tunnels to connect the east and west sides of the KSM project mine site. About 12.5km of the tunnel route passes through 11 mineral claims owned by a joint venture consisting of Tudor Gold, Teuton Resources and American Creek Resources, of which Tudor is the operator.

Seabridge said the new license makes it clearer that KSM's use of the area for the tunnel takes priority over any use Tudor proposes to make of that area and removed language that made the KSM's rights "subject to the prior rights" of the holder of the Treaty project's 11 claims.

The Treaty project rights may not "obstruct, endanger or interfere with, or allow any other person to obstruct, endanger or interfere with, the construction, operation or maintenance of" the tunnel.

KSM has no legal right or interest in the minerals within the area subject to the tunnel license.

"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 [tunnels]," said Seabridge Gold chair and chief executive Rudi Fronk.

In July, Seabridge received a "substantially started" designated from the BC Government in July that affirms the validity of the BC Environmental Assessment Certificate for the life of KSM.

The company has spent about C$500 million since 2021 on early-site construction to show government officials that the project development is substantially started, including roads, advancing the development of a switching station for connection to grid power, a bridge, the Glacier Creek Fish offset project, and other projects.

Seabridge also holds Mines Act permit M-245, which authorises KSM to build the tunnel portals, the tailing management facility and the Treaty Saddle area. Seabridge also holds the right to occupy the Treaty Saddle area to construct and operate the portals and the first 100m of the tunnels, as well as surface infrastructure, on the Treaty Claim holders' claims.

KSM is a massive low-grade porphyry that hosts reserves of 47.3Moz of gold, 7.3Blb of copper and 160Moz of silver, giving it an initial 33-year mine life.

The June 2022 prefeasibility study detailed a 195,000tpd operation to produce more than 1Mozpa of gold, 178Mlb of copper, 3Moz of silver and 4.2Mlb of molybdenum following a $6.4 billion initial capital investment.