In a Feb. 16 announcement, Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) reported "an updated independent mineral resource estimate for the Deep Kerr Deposit at its 100%-owned KSM Project in northwestern British Columbia, Canada. The new inferred resource now totals 1.92 billion tonnes grading 0.41% copper and 0.31 g/T gold (containing 19.0 million ounces of gold and 17.3 billion pounds of copper) constrained by conceptual block cave shapes."
Seabridge noted that the "updated resource estimate represents an increase of 3.0 million ounces of gold and 2.1 billion pounds of copper over last year's inferred resource estimate."
In a Feb. 16 research report, National Bank Financial Analyst Raj Ray wrote: "The resource additions announced today fall within the conceptual mine plan outlined in the 2016 PEA that envisages a combination of underground (~78%) and open-pit (~22%) mining with three underground block caves—Kerr, Mitchell Underground and Iron Cap, and two open-pits—Mitchell and Sulphurets. The growth of the inferred resource at Deep Kerr bodes well for future mine plan optimization including increased production rates and potentially higher cut-off grades."
In addition, Ray noted that Seabridge's "KSM project provides attractive optionality and is one of the few fully permitted large-scale projects in a stable jurisdiction."
On Feb. 14, Seabridge announced it had entered into a letter of intent to acquire the Snowstorm Project in Nevada from a private company, Paulson Gold Holdings LP.
"The Snowstorm Project consists of 31 square miles of land holdings strategically located at the projected intersection of three of the most important gold trends in Northern Nevada: the Carlin Trend, the Getchell Trend and the Northern Nevada Rift Zone," the company stated.
Seabridge intends to acquire 100% of the project, which "consists of 700 mining claims and 5,800 acres of fee lands carefully assembled in a private company over a 15 year period and explored over the past 10 years. The Snowstorm acquisition also includes an extensive package of data generated by previous operators," according to the company.
Seabridge plans to acquire the project for "(i) 700,000 Seabridge common shares; (ii) 500,000 common share purchase warrants exercisable for four years at $15.65 per share; (iii) a conditional cash payment of US$2.5 million if exploration activities at Snowstorm result in defining a minimum of five million ounces of gold resources compliant with National Instrument 43-101; and (iv) a further cash payment of US$5.0 million on the delineation of an additional five million ounces of gold resources," according to the company.
With regard to the Snowstorm project, Seabridge Chairman and CEO Rudi Fronk stated, "The Snowstorm Project has all the earmarks of an outstanding exploration play in one of the world's best environments for finding large gold deposits. We appreciate the opportunity to capitalize on its outstanding potential."
Commenting on the Deep Kerr news on Feb. 16, Fronk noted, "The resource additions at Deep Kerr fall within a conceptual mine plan that supports cost-effective block-cave underground mining method . . . This year's resource additions likely mean further enhancements to the project's economics."
Additionally, Seabridge, on Feb. 22, confirmed the close of the sale of its leasehold interest in the Castle-Blackrock claim block in Nevada to Columbus Gold Corp. According to Fronk, "the sale is part of a continuing program of divesting non-core assets in order to focus resources on core holdings, including its KSM and Iskut projects and the Snowstorm project."
In Cantor Fitzgerald's Jan. 23 Precious Metals & Mining Macro Industry Report, Seabridge is listed as one of the firm's five Preferred Gold and Silver Names. According to the report, these companies are "high-quality geopolitically stable gold/silver developers and smaller tier operators capable of demonstrating output growth in the 'sweet spot' of the production curve."
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1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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Disclosures from National Bank Financial, Seabridge Gold Inc., Feb. 16, 2017
Research Analysts – The Research Analyst(s) who prepare these reports certify that their respective report accurately reflects his or her personal opinion and that no part of his/her compensation was, is, or will be directly or indirectly related to the specific recommendations or views as to the securities or companies.
NBF compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of NBF including, Institutional Equity Sales and Trading, Retail Sales, the correspondent clearing business, and Corporate and Investment Banking.
All of the views expressed in this research report accurately reflect the research analysts’ personal views regarding any and all of the subject securities or issuers. No part of the analysts’ compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report. The analyst responsible for the production of this report certifies that the views expressed herein reflect his or her accurate personal and technical judgment at the moment of publication. Because the views of analysts may differ, members of the National Bank Financial Group may have or may in the future issue reports that are inconsistent with this report, or that reach conclusions different from those in this report. To make further inquiry related to this report, United States residents should contact their NBCFI registered representative.
Additional Company related disclosures for Seabridge Gold Inc.
--National Bank Financial Inc. has provided investment banking services for Seabridge Gold Inc. within the past 12 months.
--National Bank Financial Inc. or an affiliate has managed or co-managed a public offering of securities with respect to Seabridge Gold Inc. within the past 12 months
--National Bank Financial Inc. or an affiliate has received compensation for investment banking services from Seabridge Gold Inc. within the past 12 months.
--Seabridge Gold Inc. is a client, or was a client, of National Bank Financial Inc. or an affiliate within the past 12 months.
--As of the end of the month immediately preceding the date of publication of this research report (or the end of the second most recent month if the publication date is less than 10 calendar days after the end of the most recent month), National Bank Financial Inc. or an affiliate beneficially own 1% or more of any class of common equity securities of Seabridge Gold Inc..
--National Bank Financial Inc. has acted as an underwriter with respect to Seabridge Gold Inc. within the past 12 months.
Click on the following link to see National Bank Financial Markets Statement of Policies http://nbfm.ca/en/statement-of-policies/.
Cantor Fitzgerald, Precious Metals & Mining Macro Industry Report, Jan. 23, 2017
The author of this report is compensated based in part on the overall revenues of Cantor, a portion of which are generated by investment banking activities. Cantor may have had, or seek to have, an investment banking relationship with companies mentioned in this report. Cantor and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. Although Cantor makes every effort possible to avoid conflicts of interest, readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.
Disclosures as of January 23, 2017
--Cantor has provided investment banking services or received investment banking related compensation from Seabridge within the past 12 months: No.
--The analysts responsible for this research report do not have, either directly or indirectly, a long or short position in the shares or options of any of the companies under coverage.
--The analyst responsible for this report has visited the material operations of Seabridge. No payment or reimbursement was received for the related travel costs.
The research analyst whose name appears on this report hereby certifies that the opinions and recommendations expressed herein accurately reflect his personal views about the securities, issuers or industries discussed herein.