Seabridge Gold’s recent announcement of an increased resource estimate at its KSM project caught the attention of one analyst, and follows another announcement that the company intends to purchase a project that potentially intersects three of Nevada’s well-known gold trends.
In a Feb. 16 announcement, Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) reported “an updated independent mineral resource estimate for the Deep Kerr Deposit at its 100%-owned KSM Project in northwestern British Columbia, Canada. The new inferred resource now totals 1.92 billion tonnes grading 0.41% copper and 0.31 g/T gold (containing 19.0 million ounces of gold and 17.3 billion pounds of copper) constrained by conceptual block cave shapes.”
Seabridge noted that the “updated resource estimate represents an increase of 3.0 million ounces of gold and 2.1 billion pounds of copper over last year’s inferred resource estimate.”
In a Feb. 16 research report, National Bank Financial Analyst Raj Ray wrote: “The resource additions announced today fall within the conceptual mine plan outlined in the 2016 PEA that envisages a combination of underground (~78%) and open-pit (~22%) mining with three underground block caves—Kerr, Mitchell Underground and Iron Cap, and two open-pits—Mitchell and Sulphurets. The growth of the inferred resource at Deep Kerr bodes well for future mine plan optimization including increased production rates and potentially higher cut-off grades.”
In addition, Ray noted that Seabridge’s “KSM project provides attractive optionality and is one of the few fully permitted large-scale projects in a stable jurisdiction.”
On Feb. 14, Seabridge announced it had entered into a letter of intent to acquire the Snowstorm Project in Nevada from a private company, Paulson Gold Holdings LP.
“The Snowstorm Project consists of 31 square miles of land holdings strategically located at the projected intersection of three of the most important gold trends in Northern Nevada: the Carlin Trend, the …read more