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Gold Explorer Prepares for 2024 Field Season

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This Canadian company has a robust plan for its project in the Yukon as it looks toward a mineral resource estimate. Read on to learn why experts like this owner of multiple assets.

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced the upcoming work plan at its 3 Aces project in Canada's Yukon will include drilling, geophysical surveys, surface mapping, and reclamation efforts. Preparations to start are underway.

"Findings from last season's program give us confidence in our ability to expand mineralized zones," Chairman and Chief Executive Officer (CEO) Rudi Fronk said in a release. "We view this year's work as pivotal for moving the project towards resource delineation."

The 31,400-hectare 3 Aces property features orogenic zones of gold, some boasting grades exceeding 5 grams per tonne (g/t), and Seabridge's opportunity there, management said, is "to find a large surface deposit of unusually attractive grade in a receptive, secure jurisdiction."

With an CA$8 million budget, the Canadian explorer-developer intends to drill about 8,000 meters in the project's Central Core and outlying areas. Other objectives include evaluating the size and potential of existing zones and assessing the exploration model at regional targets.

"With copper and gold prices showing strength in spite of high interest rates and a relatively strong dollar, we believe Seabridge is well-positioned to benefit from the heated commodity sector," — Red Cloud Securities Analyst Taylor Combaluzier

In carrying out these activities, the company said it will employ its comprehensive and confirmed 3 Aces exploration model, which encompasses several key parameters indicating the presence of gold concentrations in the Central Core Area and predicting continuity of mineralization. Were Seabridge able to determine these same controls apply to gold mineralization outside the Central Core Area, it would confirm 3 Aces is a project of district scale, the release indicated.

Also this season, Seabridge plans to evaluate the extent of various targets in the Central Core Area to determine the size of the known high-grade mineralized zones in it. These data will help refine the controls for gold in the model, too. Further, the company will conduct surface mapping and geophysical surveys to identify and define new targets at the site.

To support its ongoing exploration work at 3 Aces, Seabridge also intends to do reclamation work on the exploration roads and continue monitoring wildlife, water, and baseline environmental conditions.

Providing Leverage to Gold Price

Based in Toronto, Ontario, Seabridge Gold Inc. has four other mining projects in addition to 3 Aces.

The company "offers among the highest torque to underlying gold prices," wrote Mike Kozak, Cantor Fitzgerald analyst, in an April 29 industry report.

The explorer-developer's flagship asset, KSM, or Kerr-Sulphurets-Mitchell, in British Columbia, is "one of the largest, undeveloped gold-copper projects in the world," Red Cloud Securities Analyst Taylor Combaluzier described in an April 12 research note.

Editor/Publisher Chris Temple highlighted in the The National Investor on April 1 that KSM has been made even more attractive because Seabridge delineated a major copper resource there of 7.3 million pounds in the Proven and Probable (2P) category, in addition to the 2P 47-million-ounce gold resource. As such, KSM is "in play now for all the global majors, whether they want gold or copper as the primary product for decades to come," Temple said.

Another positive for Seabridge and KSM is that any copper deposit proven out in Canada "is quite unique and will be sought after," according to Ron Struthers, publisher of Struthers Resource Stock Report. This, he wrote on April 18, is because copper mining is "very rare" in Canada, providing about 1% of the world supply.

Seabridge has worked diligently toward fulfilling the requirements needed to earn the substantially started designation for KSM, with which its Environmental Assessment Certificate would remain valid for its life.

"This makes Seabridge very attractive to potential large-cap suitors and/or joint venture (JV) partners," wrote Kozak.

Another of Seabridge's core projects is Iskut, in British Columbia's Golden Triangle. There, the company has a 15,000-meter drill program slated for this year, it announced recently.

Its other core projects are Snowstorm, in Nevada, and Courageous Lake, in Canada's Northwest Territories.

Last month, Seabridge announced 15 corporate goals for this year, which, Combaluzier wrote, "outline a clear path forward and priorities for the company." Along with the resource expansion drilling at 3 Aces and Iskut, they include garnering a JV agreement on KSM, securing about CA$50M in funding to advance construction at KSM, and obtaining substantially started status for KSM.

"Linking management's compensation with the progress achieved on these objectives aligns its interest with that of shareholders," Combaluzier added.

As for finances, Seabridge is "very well-funded" with CA$80M in cash, noted Kozak.

Commodity Sector 'Heated'

The outlooks for gold and for copper are positive, according to experts, and this bodes well for Seabridge.

"With copper and gold prices showing strength in spite of high interest rates and a relatively strong dollar, we believe Seabridge is well-positioned to benefit from the heated commodity sector," Combaluzier wrote.

As for the yellow metal, Farad Razazzada, technical analyst at Trading Candles, wrote on April 26, that despite recent pullbacks in the price, "not much has changed as far as gold's long-term bullish outlook."

Brien Lundin, publisher of Gold Newsletter, asserted on May 1 that gold remains a solid investment for the long term and recommended investors buy it.

"I can express high confidence that we're going to want to own gold going into what lies ahead," he wrote. He purported the Federal Reserve is going to have to lower real interest rates and do so soon. "As it stands, the dream scenario for gold bulls is taking shape: the Fed pivoting without having whipped inflation."

"I can express high confidence that we're going to want to own gold going into what lies ahead. ... As it stands, the dream scenario for gold bulls is taking shape: the Fed pivoting without having whipped inflation." — Brien Lundin, publisher of Gold Newsletter

Barry Dawes with MP Securities purported on April 29 the gold price seemed ready to move up again, heading for US$2,800 per ounce, then US$3,200. The price was at about US$2,312 on Thursday.

Regarding the red metal, it is "in a steep rising projection and will soon reach all time new highs around US$5," wrote Struthers in his April 18 Struthers Resource Stock Report. "And copper is going to double digits. It is not a matter of if, but when."

He continued, noting "this copper market is a once in a lifetime opportunity. Never before has there been such a strong rising demand and price for copper and mining companies at such low valuations. There [are] going to be tenfold increases and more with junior copper explorers."

Newsletter Publisher Richard Mills explained in his April 25 Ahead of the Herd issue that the key factors driving up the copper price are tightening supply caused by mining disruptions and steadily increasing demand due to the green energy transition.

The Catalyst: Exploration Results

With Seabridge's 2024 work campaigns at 3 Aces and Iskut about to kick off, investors can look forward to a flow of results of the various efforts, any of which could move up the company's share price.

Also anticipated on the horizon are additional developments at KSM related to the company's 2024 objectives for the asset.

Analysts are bullish on Seabridge. For example, it is a preferred name among Cantor Fitzgerald's coverage universe. The financial services firm has a Buy rating and a target price indicating 62% upside on the mining company.

Likewise, Red Cloud Securities rates it Buy, too, with a target price implying a 125% return for investors.

streetwise book logoStreetwise Ownership Overview*

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT)

*Share Structure as of 2/5/2024

Ownership and Share Structure

As far as ownership, according to Reuters, 20 strategic entities own 2.87%, or 2.48 million (2.48M) shares, of Seabridge Gold. The three investors with the largest interest, all insiders, are Chairman and CEO Rudi Fronk with 1.43% or 1.23M shares, Senior Vice President of Exploration William Threlkeld with 0.49% or 0.42M shares and Vice President of Finance and Chief Financial Officer Christopher Reynolds with 0.19% 0.17M shares.

Institutions collectively have the greatest stake in Seabridge, 55.74% or 48.06M shares. Of these 210 investors, the Top 3 are Friedberg Mercantile Group Ltd. with 13.56% or 11.7M shares, National Bank of Canada with 5.24% or 4.52M shares and Van Eck Associates Corp. with 4.06% or 3.5M shares.

Retail investors own the remaining 41.39% of Seabridge.

Regarding share structure, also as reported by Reuters, the explorer-developer has 86.22M outstanding shares and 83.74M free float traded shares.

Its market cap is CA$1.3 billion. Seabridge has traded between CA$12.62 and CA$23 per share over the past 52 weeks.

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Important Disclosures:

  1. 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.
  2. Doresa Banning and Steve Sobek wrote this article for Streetwise Reports LLC. Banning provides services to Streetwise Reports as an independent contractor and Sobek provides services to Streetwise Reports as an employee.
  3.  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 and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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