Gold Explorer Continues to Grow Golden Triangle Deposit

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Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced results from three more drill holes completed this summer at the Snip North target within the Iskut Project in British Columbia’s Golden Triangle.

These findings confirm the continuity, quality, and scale of the copper-gold porphyry mineralization noted by the company at Snip North in August. So far, 18,000 meters of drilling have been conducted across 18 holes, the company said in a release.

Encouraged by these results, the company plans to extend the drilling program with an additional 3,000 meters. The latest assays have identified steeply north-and-west-plunging copper-gold mineralization, characterized by potassic alteration and porphyry stockwork veining over a strike length of 1,800 meters. Hole 30 has intersected what appears to be a potential porphyry intrusion linked to the mineral system, which was one of the goals for this year's exploration.

"Our concepts for Snip North are developing as expected," Chairman and Chief Executive Officer Rudi Fronk said. "A core zone may be emerging within this mineralized envelope showing strong gold and copper grades that we see continuing for hundreds of meters in our drill logs. We will achieve the density of drilling projected to be necessary for a maiden resource and we are confident of announcing a mineral resource estimate for Snip North early next year based on this drill program."

He continued, "However, it remains unclear if the ultimate limits of mineralization will be established by season's end."

In an updated research note on September 15, RBC Capital Markets Analyst Michael Siperco called the developments "positive."

"Management plans to release an initial resource at Snip North in early 2026, following the completion of the 2025 drill program," the analyst noted. "The broader Iskut property already hosts an inferred resource at the Bronson Slope deposit of 5.4 million ounces (Moz) gold / 1.1 billion pounds copper (Cu), and in our view offers promising longer-term upside in the portfolio aside from flagship project KSM."

Detailed Results

According to Monday's release, Hole SN-25-28, located 348 meters northeast of hole SN-25-26, begins in moderately potassic-altered fine-grained sedimentary sections with abundant stockwork veining, which increases down the hole until encountering fault-controlled intrusive rocks at approximately 400 meters, Seabridge said. Below this depth, alteration diminishes, following lithologies with volcanoclastic rocks showing sericite-pyrite and sedimentary rocks with biotite-chlorite-sericite. The density of chalcopyrite-bearing veins varies in this area but decreases further down the hole.

Seabridge said Hole SN-25-29 is a south-directed drill hole situated 212 meters east of SN-25-26. It starts in medium-grained clastic sedimentary rocks, quickly transitioning into medium and coarse-grained sedimentary rocks interlayered with volcanoclastic units of tuff and breccia. Hydrothermal alteration is primarily characterized by pervasive and vein-margin biotite. Deeper in the hole, sericite accompanies the potassic alteration. Quartz-magnetite and quartz-carbonate-sulfide veins are prevalent in the upper part of the drill hole, becoming less frequent at greater depths. Deeper alteration is marked by sericite in volcanoclastic rocks containing narrow quartz veins with molybdenite.

In an updated research note on September 15, RBC Capital Markets Analyst Michael Siperco called the developments "positive."

Hole SN-25-30 is a southwest-directed hole positioned 174 meters northwest of drill hole SN-25-25, the company said. The initial 130 meters of this hole intersected volcanoclastic host rock, exhibiting low-intensity sericite and potassic alteration with occasional narrow pyrite veins.

From 130 meters to 400 meters, the hole transitioned into fine-grained sandstone host rock, showing moderate potassic alteration and an increase in quartz-sulfide-biotite veining, the company said. Between 400 meters and 907 meters, the sedimentary host rock displayed intense potassic alteration and a very high density of quartz-sulfide-biotite veins, along with an increase in carbonate-quartz-molybdenite veins, suggesting multiple fluid phases.

At 576 meters, a 146-meter-wide replacement interval was encountered, featuring semi-massive pyrite-magnetite-chalcopyrite and quartz-molybdenite veins. Below this replacement unit, volcanoclastic intervals reappeared, characterized by potassic alteration, 1-5% sulfide disseminations, and frequent quartz-sulfide-biotite and carbonate-sulfide-magnetite veins.

At 907 meters, a breccia was discovered containing clasts of porphyritic andesite, possibly indicating an intrusive body. This unit's potassic alteration intensified down the hole, with a high density of mineralized veins, including chalcopyrite and molybdenite. Below the breccia, the sedimentary sequence reemerged, accompanied by a series of narrow mafic dikes, according to Seabridge.

Partner for KSM Still Major Catalyst

Siperco with RBC Capital Markets noted that the key catalyst for the company remains finding a partner for its mass KSM project, also in the Golden Triangle.

"Management is seeking a senior producer that could provide funding through feasibility and a construction decision, with an option to acquire control," the analyst wrote. "A partner with the capability and balance sheet to advance the project to feasibility and a construction decision could, in our view, validate the project, the latest updated studies, and the work done to date at site, while providing a path for Seabridge investors to participate in future potential upside if a positive construction decision is made."

Siperco rated the stock Outperform, Speculative Risk with a US$40 price target, a more than 112% increase from the US$18.83 per share Seabridge was being sold at time of writing.

In an updated research note on September 14, Stonegate Capital Partners Analyst Dave Storms initiated coverage of the company.

"When valuing SA, we apply an EV/NAV range of 0.60x to 0.80x, which results in a valuation of CA$41.85 to CA$57.85 with a midpoint of CA$49.85," the analyst wrote. "When using an EV/Reserves valuation method, we apply a multiple range of 20x to 30x, which results in a valuation range of CA$42.72 to CA$67.17 with a midpoint of CA$54.94."

KSM "remains the world's largest undeveloped gold project and the third largest copper development resource," he said.

"The project received its Substantially Started Designation (SSD) in July 2024, securing its Environmental Assessment Certificate for the life of the project," Storm wrote. "Near-term objectives include completing the KSM Site Investigation Program in 2H25, supporting a future Bankable Feasibility Study (BFS) and advancing the ongoing JV process targeting partner selection by YE25."

The Catalyst: Steady Gold Prices Hover Near Record High

Gold prices remained mostly steady on Monday, hovering near record highs after rising for four consecutive weeks, Peter Nurse wrote for Investing.com on September 15. This stability is supported by increasing expectations that the U.S. Federal Reserve will lower interest rates later this week.

At 08:00 ET (12:00 GMT), spot gold was essentially unchanged at US$3,643.30 per ounce, close to the all-time high of US$3,673.95 reached last week. The metal has surged nearly 40% this year, driven by heightened safe-haven demand due to President Donald Trump’s trade policies and central bank purchases.

The bullion market traded cautiously on Monday, with the Federal Reserve expected to announce an interest rate cut at the end of its two-day policy meeting on Wednesday. Traders now see a more than 96% likelihood of a 25 basis point cut, with some speculating on a larger reduction.

Reporting the same day, Neils Christensen wrote for Kitco News that "even above US$3,600 an ounce, there is still plenty of value in gold, and it can continue to be a valuable diversification tool for investors, according to the world’s largest asset manager.

In his latest commentary, Russ Koesterich, managing director and portfolio manager of BlackRock’s Global Allocation team, reaffirmed his positive outlook on gold, though he has introduced some nuance to his stance.

In a commentary published in late March, Koesterich expressed optimism about gold as a long-term hedge against declining interest rates and currency devaluation, Christensen said. In his most recent note, he now suggests the precious metal as a safeguard against potential market volatility.

After a slow start to the year, the S&P 500 has gained momentum, reaching record highs. While Koesterich remains optimistic about equities, he noted that market risks are increasing as volatility has significantly decreased.

"Since May, investors have done best rotating back into U.S. equities," he stated in a note. "While I still believe stocks will end the year higher, we are entering a time of year when volatility tends to rise. Given this short-term dynamic, I would advocate adding a bit more gold to portfolios."

Ownership and Share Structure

Refinitiv provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 3% of the company. According to Refinitiv, CEO and Chairman Rudi P. Fronk owns 1.22%.

Refinitiv reports that institutions own about 56% of the company. Friedberg Mercantile Group Ltd. owns 16.08%, Van Eck Associates Corp. owns 2.62%, Kopernik Global Investors L.L.C. owns 7.34%, and Paulson & Co. Inc. owns 2.06%.

According to Refinitiv, there are about 100.54 million shares outstanding, while the company has a market cap of CA$2.62 billion and trades in a 52-week range of CA$13.44 and CA$28.39.