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New Drill Results in Golden Triangle Compelling

Source: Taylor Combaluzier 12/27/2023

The data suggest a larger porphyry system exists at this British Columbian mining project, noted a Red Cloud Securities report.

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

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  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] wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  3. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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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.

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( Companies Mentioned: SEA:TSX; SA:NYSE.MKT,
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