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Gold Producer Plans to Complete PFS for BC KSM Asset in Q2
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  • ROTH Capital Partners reiterated its "Buy" rating and US$27 price target for Seabridge Gold.
  • On February 1, 2022, the company released assay results for nine new drill holes from its 2021 drill program at its B.C. KSM property.
  • Hole SF-21-09 intercepted 150.5 m of 1.81 g/t Au.
  • Seabridge is expected to release an updated PFS during Q2/22.
  • ROTH Capital believes the PFS will show a significant improvement in project economics over the previous PFS which could potentially provide a significant catalyst for the company.

ROTH Capital Partners Corp. Senior Research Analyst Joe Reagor stated in a February 2 research report that Toronto-based mineral exploration company Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) just released assay results from nine more drill holes at its Kerr-Sulphurets-Mitchell (KSM) project in British Columbia.

The analyst advised the objective of this latest round of drilling was to update and solidify KSM's resource model in advance of a new Prefeasibility study (PFS) planned for Q2/22. The analyst said that Seabridge Gold released the assay results from nine additional drill holes from its 2021 drill campaign at KSM on February 1, 2022,

The report from ROTH Capital Partners stated that it sees the drill results as positive as they confirm high-grade gold at East Mitchell.

According to the report from ROTH Capital, the drill results highlighted the high-grade gold component of the East Mitchell deposit (formerly Snowfield). In particular, ROTH mentioned that hole SF-21-09 intercepted 150.5 m of 1.81 g/t Au.

ROTH stated it believes that the recent drill results together the results announced last November 2021 will allow the firm to move the KSM mine plan forward to optimize cash flow.

ROTH Capital anticipate that when Seabridge releases the updated PFS in Q2/22 it will provide the basis for a potential significant catalyst for the company.

The analyst noted that ROTH's valuation of Seabridge Gold was based upon a combination of discounted cash flow and sum of the parts valuation methods. ROTH's calculations resulted in total valuation for Seabridge Gold of US$2.7 billion (CA$3.4 billion), or US$27.43 per future fully diluted share based on an estimated 97 million shares outstanding.

Seabridge Gold Inc.'s shares trade in the U.S. on the NYSE under the symbol "SA" and last closed for trading at US$16.00 on Tuesday, February 8, 2022. The company's shares also trade under the ticker "SEA" on the Toronto Stock Exchange.


1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Seabridge Gold. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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Disclosures for ROTH, Seabridge Gold Inc., Feb. 2, 2022

ROTH makes a market in shares of Seabridge Gold, Inc. and as such, buys and sells from customers on a principal basis.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from
sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. 

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