Source: Streetwise Reports 04/24/2024
Seabridge Gold Inc. announced a 15,000-meter core drilling campaign for this year at its 100%-owned Iskut property in northwest British Columbia’s Golden Triangle. Find out why one newsletter writer says this company should be a core holding in your portfolio.
Seabridge Gold Inc. (NYSE:SA) announced the details of a 15,000-meter core drilling campaign this year at its 100%-owned Iskut property in northwest British Columbia’s Golden Triangle.
The expanding Bronson Slope mineral resource and Seabridge’s discovery in 2023 of similar mineralization at Snip North are interpreted to be “high-level expressions of intrusive-related porphyry mineralization” said the company, which is using three helicopter-portable drill rigs for the new drilling at a budgeted cost of CA$12 million.
“Last year, we discovered extensive gold-dominated epithermal-style mineralization that is consistent with the upper parts of significant porphyry copper-gold mineral systems,” Chairman and Chief Executive Officer Rudi Fronk said. “The expansion of the Bronson Slope mineral resource and the new discoveries at Snip North have given us clear direction on where to focus our efforts.”
Further Expansion in Iskut Property
Fronk said the intrusive targets appear to be embedded in a “district-scale structural trend that is reminiscent of our KSM deposits” referring to the company’s massive KSM project, which is only 30 kilometers by air from Iskut. This proximity highlights the potential for further expansion and synergy between the two properties.
KSM is the world’s largest undeveloped gold project by reserves and resources, according to analyst Lucas N. Pipes of B. Riley Securities, who has rated the stock a Buy with a target price of US$60 per share.
“This year’s work is dedicated to realizing the porphyry potential we had in mind when we acquired the Iskut project,” Fronk said.
Exploring District-Scale Structural Corridor
Regional geophysical surveys and surface geology have confirmed the “district-scale structural corridor that connects the Quartz Rise, Bronson Slope, and Snip North targets” Seabridge noted in a release. This corridor provides a unique opportunity for exploring multiple targets with significant mineralization potential.
Results from Bronson Slope drilling last year have expanded, along strike and down plunge, an intermediate sulfidation epithermal system open in multiple directions, the company said. This mineral zone is adjacent to the quartz-magnetite breccia pipe previously discovered, all of which are indications of an intensive and extensive intrusion-related fluid system at Bronson Slope.
Newsletter writer Chris Temple, author and editor of The National Investor, wrote that it’s only a matter of time before KSM attracts the attention it deserves.
In 2023, drilling at Snip North encountered wide intersections of gold and copper, showcasing the potential for significant mineralization in the area.
Highlights included 0.80 grams per tonne gold (g/t Au), 0.07% copper (Cu), and 1.19 g/t silver (Ag) over 277 meters (including 1.8 meters of 15.3 g/t Au, 1.5% Cu, and 430 g/t Ag); 0.61 g/t Au, 0.07% Cu, and 1.36 g/t Ag over 252 meters; and 0.30 g/t Au, 0.09% Cu, 0.59, and g/t Ag over 421.5 meters.
“We view these initial results from Snip North positively given the strong indications of a likely deeper, higher-grade porphyry source to the intermediate sulfidation mineralization intersected in this drilling,” wrote Red Cloud analysts Taylor Combaluzier and David Talbot at the time. In a later note, the analysts gave the stock a Buy rating with a CA$46.50 per share target price.
Strategic Goals for 2024
Earlier this month, Seabridge announced its top 15 goals for 2024, including filing “a new technical report for Bronson Slope with 2023 drill results and an updated resource estimate and (completing) a drill program of at least 12,500 meters at Iskut.”
At the top of the list of goals was finding a joint venture partner for KSM. The company has noted that RBC Capital Markets is running a formal search process, highlighting the focus on strategic partnerships to further advance their projects.
Pipes said Seabridge has “a clear vision for a potential partnership agreement,” indicating the company’s proactive approach to securing valuable collaborations.
Upcoming catalysts for Seabridge include finding a JV partner, ongoing development updates at KSM, and continued drilling at Iskut and its 3 Aces and Snowstorm projects.
Newsletter writer Chris Temple, author and editor of The National Investor, emphasized the potential of Seabridge’s flagship KSM Project and the company’s overall portfolio, suggesting that it deserves a prominent place in investors’ portfolios.
“When you consider the rest of Seabridge’s world-class portfolio, I think you’ll feel — as I expressed — that Seabridge deserves to be a core holding in your portfolio,” Temple wrote.
Upcoming catalysts for Seabridge include finding a JV partner, ongoing development updates at KSM, and continued drilling at Iskut and its 3 Aces and Snowstorm projects, signaling a dynamic year ahead for the company.
Analyst Insights on Market Trends
Gold prices have dropped heavily this week, but Technical Analyst Clive Maund wrote that the possible correction “did not come as any surprise.” Maund’s analysis highlights the cyclical nature of the market and the opportunities presented by corrections for strategic investment decisions.
“The core drivers of the gold and silver bull market remain firmly in place,” wrote Maund. “This correction in gold and silver should be seen for what it is — the perfect opportunity to build positions further at better prices ahead of the next major upleg.” This perspective underscores the long-term potential of the precious metals market.
Newsletter writer Captain Ewave recently analyzed the precious metal’s movements and recommended being long on gold, echoing the sentiment of continued growth potential in the gold market.
Ownership and Share Structure Overview
Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 3% of the company. CEO and Chairman Rudi P. Fronk holds a significant ownership stake in the company, highlighting alignment between leadership and shareholders.
Institutions own about 55% of the company, with notable holdings from major investment firms and asset managers. This institutional backing reflects confidence in Seabridge’s projects and growth prospects.
According to Reuters, there are 86.22 million shares outstanding with 83.74 million free float traded shares, while the company has a market cap of CA$1.81 billion and trades in a 52-week range of CA$12.62 and CA$23, providing context on the company’s market presence and valuation.
Important Disclosures:
- Seabridge Gold Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice, encouraging readers to consult with their personal financial advisor for investment decisions.
