Mining Giant Announces Maiden 9.2Moz Resource at Snip North in BC

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced its initial mineral resource estimate (MRE) for the Snip North deposit at its wholly-owned Iskut Project, now renamed as the Bronson Corridor Project, in the Golden Triangle Area of northwestern British Columbia, according to an April 15 release.

The company said the first inferred mineral resource for Snip North is substantial, comprising 9.2 million ounces (Moz) of gold, 28.3 Moz of silver, and 923 million pounds of copper, derived from 605.7 million tonnes at grades of 0.47 grams per tonne (g/t) gold, 0.07% copper, and 1.5 g/t silver. The resource is noted to be open in several directions, indicating potential for further expansion.

"We are excited to have accomplished our goal of a robust maiden resource for Snip North," Seabridge Chair and Chief Executive Officer Rudi Fronk said. "This resource estimate reminds us of our first estimate at KSM nearly 20 years ago. Although it is not yet a material part of our total resource holdings, there remains considerable upside for expansion and discovery of the intrusive. Our team will soon be back on the ground to refine and improve our understanding of this mineral resource and use that understanding to continue exploring the project."

Snip North is the second discovery within the newly named Bronson Corridor Project, with Bronson Slope being the other known deposit. The resources for Snip North were primarily defined through exploration diamond drilling conducted by the company from 2023 to 2025.

The company said the geological features of the deposit suggest it is part of a significant magmatic-hydrothermal system associated with a Cu-Au porphyry system, although the source of this intrusion remains undiscovered. Currently, the MRE primarily encompasses altered sedimentary-volcanoclastic wall rock.

Nearly 30,000 Unique Assay Intervals

The MRE is based on 58 verified diamond drill holes drilled between 2006 and 2025, including 47 by Seabridge and 11 by previous operators, the company said. These holes provided 27,935 unique assay intervals that were composited to 5-meter lengths. The estimation process involved evaluating initial composite assays through probability distribution and decile analysis to identify grade outliers, followed by the construction of 10x10x10 meter blocks with restricted outlier estimation.

The block grades were estimated using multi-pass ordinary kriging based on variography analysis. The MRE is currently constrained by an open pit and a long hole open stope underground shape below the pit, although these mining shapes are preliminary and subject to further refinement based on environmental and development considerations. Additional drilling is anticipated, which could potentially shift the center of the deposit and influence future development plans and constraints.

The Snip North deposit is primarily situated within sedimentary and volcanoclastic rocks from the Triassic Stuhini Group, according to the release. The metal grades within this deposit are dispersed across stockwork veins and replacements within calcareous interbeds. A notable feature of these rocks is their extensive and intensive potassic alteration, which is marked by the presence of biotite and K-feldspar.

On the western side of the system, an alteration dominated by muscovite-quartz-pyrite is prevalent and, towards the central area of the zone, it overprints the potassic alteration. The boundaries of the north and south sides of the zone are characterized by fractured and sheared areas, which show minimal offset. Overall, the system exhibits a plunge towards the north-northwest.

The estimation and geostatistical analysis were conducted by Wood Canada Limited, with Moose Mountain Technical Services providing mining constraints for the estimation and Tetra Tech Canada Inc. conducting metallurgical recovery testing and projections. All three entities are independent of Seabridge Gold.

KSM MRE Update

Seabridge updated the Mineral Resource Estimates for its KSM Project in northwestern British Columbia, as per a March 31 announcement. The revisions are based on new assumptions for metal prices and currency exchange rates, specifically setting gold at US$2,000 per ounce, copper at US$4.00 per pound, silver at US$25 per ounce, and molybdenum at US$22 per pound, with a currency exchange rate of US$0.746 per CA$1. This marks a significant shift from the previous decade's estimates, which were calculated using lower metal prices and a different exchange rate.

The revised estimates indicate considerable increases in the project's resources. The Measured and Indicated Mineral Resources have grown by 6.8 million ounces of gold, 1.5 billion pounds of copper, 42.7 million ounces of silver, and 93 million pounds of molybdenum since the last update in January 2024. Additionally, the Inferred Mineral Resources have expanded to include an additional 12.9 million ounces of gold, 4.2 billion pounds of copper, 108.8 million ounces of silver, and 140 million pounds of molybdenum.

Fronk explained at the time that these resource restatements were due to the application of updated metal price parameters and operating costs. He stated, "As we move towards a joint venture on KSM, our resource estimates' price assumptions are now consistent with most Tier 1 mining company disclosures."

It is important to note, as per Seabridge's announcement, that the mineral resource model itself for KSM remains unchanged; the updates are solely attributable to the revised assumptions on metal prices and costs that affect the constraints on mineral resources and the calculation of cut-off grades.

The updated mineral resource tabulation continues to utilize the same grade models from the KSM Preliminary Feasibility Study and Preliminary Economic Assessment, NI 43-101 Technical Report dated August 8, 2022. Seabridge has clarified that the adjustments to the Mineral Resources are not considered material to the KSM Project or to Seabridge, as they do not significantly alter the existing mineral reserves.

Analyst: Stock Heavily Undervalued

In an April 13 research note, Stonegate Capital Partners Analyst Dave Storms noted that the company's valuation seems to significantly understate the worth of KSM and its extensive asset portfolio. This undervaluation persists even though several catalysts are expected to enhance value in the near term.

One such catalyst is the advancement of the joint venture process for KSM, which is anticipated to be a significant re-rating event as the project moves towards partner-funded development, Storms said. Additionally, the planned spin-out of Courageous Lake into Valor Gold, expected in the second quarter of 2026, aims to reveal the standalone value of this asset, which is currently perceived as negligible.

The company has also achieved crucial infrastructure and permitting milestones, securing permits for life and investing over US$500 million to date, Storms noted.

KSM remains the central value driver for Seabridge, fully permitted and located in a Tier 1 jurisdiction, supported by significant infrastructure investments, the analyst said. The 2022 Preliminary Feasibility Study (PFS) projects a 33-year mine life with low costs and substantial copper by-product credits. Discussions are ongoing with a preferred joint venture partner, and an announcement could serve as a key catalyst to attract third-party capital, validate project economics, and enhance the company's stock value.

The Courageous Lake project, another Tier 1 asset, holds 11.0 million ounces of measured and indicated gold resources with strong economics demonstrated in the 2024 PFS, the analyst said. The expected spin-out into Valor Gold in 2026 is designed to unlock value and offer shareholders direct exposure to a standalone development entity.

The Bronson Corridor Project (formerly the Iskut Project) is viewed by company management as a potential "second KSM," offering long-term prospects, Storms wrote.

"Seabridge is entering a period where multiple value realization paths are converging, including JV execution at KSM, the Courageous Lake spin-out, and new resource delineation at Iskut (Bronson)," he continued. "In our view, the current valuation does not fully reflect these catalysts or the scale and quality of the underlying asset base."

According to the analyst, valuation metrics suggest a range of USD$67.09 to USD$75.99 based on EV/NAV and USD$68.43 to USD$89.17 based on EV/In-Situ, with respective midpoints of USD$71.54 and USD$78.80.

A March 31 research note by Cantor Fitzgerald's Mike Kozak maintained the firm's Buy rating with a CA$66 per share target price, an 84% return at the time of writing.

Its updated KSM MRE shows a 12% increase in total contained metal on a gold-equivalent basis compared to the previous MRE from 2024, Kozak said.

The updated MRE was recalculated with higher metal prices, specifically US$2,000 per ounce for gold and US$4 per pound for copper, compared to the previous prices of US$1,300 per ounce for gold and US$3 per pound for copper. These revised price assumptions have resulted in lower cut-off grades and expanded the potential for both open-pit and underground block cave mining operations.

Seabridge has noted that the revised metal price assumptions used in the updated MRE are now consistent with those employed by most Tier 1 mining companies, Kozak said. This alignment is crucial as Seabridge looks to secure a joint venture agreement with a Tier 1 mining company to further develop the KSM project.

According to FactSet, at least two other analysts have issued Buy ratings for Seabridge, including price targets of US$65 from B. Riley Securities Analyst Nick Giles and US$71 per share from RBC Capital Markets Analyst Josh Wolfson.

The Catalyst: Market Transfixed on Peace Talks

Gold prices experienced a slight increase on Thursday, continuing to benefit from the ongoing weakness in the U.S. dollar, as the market's attention remains fixed on the potential for further ceasefire talks between the U.S. and Iran, reported Scott Kanowsky for Investing.com on April 16.

The precious metal maintained its position close to a near one-month high achieved on Wednesday, buoyed by hopes for an extended de-escalation in the conflict with Iran, which has helped to boost risk appetite and alleviate some concerns about inflation. By 09:29 a.m. ET, spot gold had risen by 0.5% to US$4,816.49 an ounce, and gold futures had increased by 0.3% to US$4,837.39 an ounce.

The potential extension of the ceasefire between the U.S. and Iran is particularly significant, with both nations agreeing in principle to hold another round of talks following an initial discussion last weekend in Pakistan that did not immediately lead to a deal. According to the Wall Street Journal, which cited officials familiar with the situation, the specifics such as the time and venue of the next meeting have yet to be determined, and the current ceasefire is set to expire on April 21.

In related developments, U.S. President Donald Trump mentioned that talks between Israel and Lebanon are scheduled for later today, although details were sparse and reports suggested that Lebanon might not have been informed about these discussions. Tensions in the Middle East continue, especially concerning the U.S. naval blockade of Iranian ports, which Iran has warned against continuing. Despite these frictions, oil prices have stabilized below US$100 a barrel but remain significantly higher than pre-war levels.

The surge in oil prices earlier in the year, which reached approximately US$120 a barrel following the outbreak of the war in late February, had heightened global inflation fears and increased speculation that central banks, including the U.S. Federal Reserve, might raise interest rates. This speculation had initially diminished the appeal of non-yielding assets like gold. However, the recent optimism surrounding peace negotiations has tempered these expectations, contributing to a 0.9% increase in spot gold over the past week. Additionally, the softening of the U.S. dollar, previously bolstered by its perceived insulation from disruptions in oil supply through the Strait of Hormuz, has made gold more attractive to international buyers.

The gold market may continue to experience subdued safe-haven demand as recent data from the Philadelphia Federal Reserve indicates robust manufacturing activity in its region, which has helped to alleviate concerns about a potential recession, Neils Christensen wrote for Kitco News on April 16. The regional central bank's April Manufacturing Business Outlook Survey showed a significant increase in its index to 26.7 from March's 18.1, surpassing expectations where economists had anticipated a reading of just 10.3.

According to the report, manufacturing activity in the region has continued to grow, with indicators for general activity, new orders, and shipments all showing increases this month. However, the survey also highlighted some challenges, particularly in the labor market. The employment index declined and entered negative territory, indicating a reduction in employment levels.

Despite a recent rise in gold prices above US$4,800 an ounce, the market has not witnessed significant follow-through buying. Spot gold was last recorded trading at US$4,815.90 an ounce, marking a 0.5% increase for the day. Detailed components of the report revealed that the new orders index surged to 33.0 from a previous 8.6, and the shipments index increased to 34.0 from 22.2 in March. Nonetheless, the labor market's difficulties were underscored by the number of employees index, which dropped to -5.1 from a positive 0.8 in March.

Additionally, the report indicated rising inflation pressures, with the prices index escalating to 59.3 from 44.7, according to Christensen. This uptick suggests that while manufacturing activity is robust, it is also contributing to heightened inflationary concerns.

Ownership and Share Structure¹

Management and insiders hold approximately 3% of the company, while institutions own about 62%. The remainder is held by retail investors.

Friedberg Mercantile Group Ltd. holds 15.49%, Pan Atlantic Bank and Trust owns 10.23%, Van Eck Associates Corp. has 6.86%, and Kopernik Global Investors L.L.C. possesses 6.69%.

There are around 104.35 million shares outstanding, with the company having a market cap of CA$4.46 billion and trading within a 52-week range of CA$15.56 to CA$54.29.