recent drilling in the Bronson Slope target at its Iskut project in British Columbia's Golden Triangle expanded the existing copper-gold deposit and showed a large alteration system is present, reported Red Cloud Securities analyst Taylor Combaluzier in a December 21 research note.
"We view these initial results from Bronson Slope positively given the strong indications of a deeper, porphyry source to the breccia and intermediate sulfidation mineralization," Combaluzier wrote. "Coupled with the results at Snip North, we believe that Iskut may be underlain by a large porphyry system." Snip North is another of Seabridge's targets at Iskut, near Bronson Slope.
173% Gain Possible
Given this news, Red Cloud reiterated its CA$45.25 per share target price on the Canadian mining developer, currently trading at about CA$16.38 per share, the analyst noted.
The difference between these prices implies a significant potential return of 176%.
Seabridge remains a Buy.
Signs of Deeper Porphyry System
The newly released drill results are from 16 diamond holes placed in the Bronson Slope, reported Combaluzier. The objectives of drilling were to expand the resource there and test for the source of mineralization at depth.
The results highlighted a large alteration system, and this comes from a deeper porphyry mineralized system, highlighted Combaluzier. The latter is also the source of the "large, explosive breccia pipe" discovered in 2022 and an intermediate epithermal occurrence, the analyst wrote.
Combaluzier provided some of the standout intercepts of this batch of results.
Hole SBS-23-19 returned 0.87 grams per ton (0.87 g/t) gold, 0.02% copper and 29.2 g/t silver over 252 meters (252m). Hole SBS-23-18 showed 0.36 g/t gold, 0.02% copper and 2.6 g/t silver over 551.8m.
What To Watch For
At the Bronson Slope target, Seabridge plans follow-up drilling in 2024, seeking to identify the location of the porphyry, Combaluzier noted.
As for its flagship KSM asset, 19 miles east of Iskut, the company likely will apply in January 2024 for it to be granted the substantially started designation. This status would make the project's permits valid throughout KSM's life. Since 2021, Seabridge has spent CA$450 million on advancing K.S.M., before the July 2026 application deadline so it would meet the requirements.
|Want to be the first to know about interesting Gold, Base Metals and Silver investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.
- [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.
- [Doresa Banning] wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
For additional disclosures, please click here.
Disclosures for Red Cloud Securities, Seabridge Gold Inc., December 21, 2023
Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Investment Industry Organization of Canada (IIROC). Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.
Red Cloud Securities Inc. has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document. Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report.
Company Specific Disclosure Details
1. The analyst has visited the head/principal office of the issuer or has viewed its material operations.
2. The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit.
Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.
Dissemination Red Cloud Securities Inc. distributes its research products simultaneously, via email, to its authorized client base. All research is then available on www.redcloudsecurities.com via login and password.
Analyst Certification Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.