Gold Co. Releases MRE for Deposit at Golden Triangle Project

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced its first mineral resource estimate (MRE) for the Bronson Slope deposit at its 100%-owned Iskut project in northwest British Columbia's Golden Triangle.

The MRE found an Inferred Resource of 517.3 million tonnes (Mt) at 0.33 grams per tonne gold (g/t Au) for 5.4 million ounces (Moz), 0.09% copper (Cu) for 1.06 billion pounds, and 2.7 g/t silver (Ag) for 45 Moz.

"We are pleased to confirm and expand the Bronson Slope resource," said Seabridge Chairman and Chief Executive Officer Rudi Fronk. "Although it is not a material part of our total resources holdings and is not our primary objective, the Bronson Slope resource could play a valuable role in finding and developing the source porphyry Cu-Au system that we are targeting. Our team is back on the ground pursuing the understanding provided from building this mineral resource."

Three helicopter-portable drills are deployed at Iskut this summer to test for source copper-gold porphyries for the intermediate sulfidation epithermal mineral systems recognized by the company in 2023.

"These intrusive targets appear to be embedded in a district-scale structural trend that is similar in strike and width to our nearby KSM deposits," Fronk said in May. "This year's work is dedicated to realizing the porphyry potential we had in mind when we acquired the Iskut project."

Seabridge's massive KSM project is only 30 kilometers by air from Iskut. According to analyst Lucas N. Pipes of B. Riley Securities, who has rated the stock a Buy with a target price of US$60 per share, KSM is the world's largest undeveloped gold project by reserves and resources.

In an updated research note on Thursday, RBC Capital Markets analyst Michael Siperco said the key catalyst for Seabridge remains finding partner for KSM.

"The ongoing exploration at Iskut indicates potential for a larger gold/copper deposit (similar to the KSM deposits)," wrote Siperco, who rated the stock Outperform/Speculative Risk with a US$30 per share target price. "Longer term, the property could become more of a focus for Seabridge post-KSM partnership."

The Catalyst: An Intensive, Extensive System

Results from Bronson Slope drilling last year expanded, along strike and down plunge, an intermediate sulfidation epithermal system open in multiple directions, the company has said. This mineral zone is adjacent to the quartz-magnetite breccia pipe previously discovered, all of which are indications of an intensive and extensive intrusion-related fluid system at Bronson Slope.

Seabridge noted that the pattern and sulfide mineralization of the deposit is "related to processes generated by an intrusion, and we believe an intrusion in this environment will be a copper and gold-bearing porphyry system."

"The mineralization in the Bronson Slope resource sits in and around a multiphase quartz-magnetite breccia pipe," the company said in Thursday's release. "Within the breccia pipe, directly over and on the margins, medium to fine-grained pyrite and chalcopyrite are found in veins and fractures with quartz and magnetite. Further outboard and in the hanging wall, sedimentary rocks to the breccia pipe are intensely altered to quartz-sericite with abundant pyrite and subordinate chalcopyrite and localized sphalerite-galena concentrations."

For the MRE, Wood Canada Ltd. led the estimation and technical analysis, supported by Moose Mountain Technical Services and Tetra Tech Canada Inc.

Other upcoming catalysts for Seabridge include finding a joint venture (JV) partner for KSM, obtaining Substantially Started designation at KSM, and continued drilling at its 3 Aces Project located in Southeastern Yukon, Canada.

'Opportunities to Build Gold Positions'

Gold hit an all-time high of US$2,449.89 per ounce on May 20. On Thursday morning, it was US$2,319 per ounce, up 0.88% from Wednesday but down 0.43% compared to last week and 0.55% from a month ago, according to Forbes.

In addition to its traditional role as a safe asset, gold is also increasingly being bought by central banks, according to a report by Stockhead on June 18. The World Gold Council released its 2024 Central Banks Gold Reserves Survey, showing four in five respondents expected reserve managers to increase their gold holdings in the next year, the website reported.

Seventy central banks were polled by the Council. Nearly 30% said they are planning to add to their own gold reserves this year and 57% said gold will account for a higher proportion of global reserves within five years.

"Extraordinary market pressure, unprecedented economic uncertainty, and political upheavals around the world have kept gold front of mind for central banks," the Council's global head of central banks and head of Asia-Pacific Shaokai Fan said, according to Stockhead. "Many of these institutions have become more aware of the asset's value as a way to manage risks and diversify their portfolios."

Analysts at investment bank UBS said they believe the market is entering a "seasonally quieter period," according to Investing.com, but noted it as an opportunity for gold investors.

"We think any setbacks during this period should offer opportunities to build gold positions," the strategists said. 

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 3% of the company. According to Reuters, CEO and Chairman Rudi P. Fronk owns 1.41%.

Reuters reports that institutions own about 55% of the company. According to Reuters, Friedberg Mercantile Group Ltd. owns 13.34%, National Bank of Canada owns 5.15%, Van Eck Associates Corp. owns 4.2%, Kopernik Global Investors, L.L.C. owns 3.71%, Paulson & Co. Inc. owns 2.36%, and Sprott Asset Management L.P. owns 2.24%.

According to Reuters, there are 87.69 million shares outstanding, while the company has a market cap of CA$1.67 billion and trades in a 52-week range of CA$12.62 and CA$23.

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. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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