Seabridge Gold Inc.'s (SEA:TSX; SA:NYSE.MKT) completed 2022 drill program at its Iskut project "supports resource expansion," reported Cantor Fitzgerald analyst Mike Kozak in a Jan. 9 research note. Iskut is about 30 kilometers from the company's KSM project in northwestern British Columbia.
"We ascribe zero value to the Iskut project and instead continue to view this exploration property as a highly prospective 'free option,'" Kozak wrote.
As is, Cantor's 12-month price target on Seabridge of CA$43.50 implies investors will at least double their money, given the stock's current share price is about CA$18.34. Cantor has a Buy recommendation on the Canadian mining firm.
Findings Upon Drilling
Seabridge's recent Iskut drill campaign encompassed ten drill holes covering 10,162 meters (10,162m), Kozak relayed. Through this exploration, the Toronto, Ontario-based company identified a large, mineralized quartz-magnetite breccia pipe, potentially the source of the Bronson Slope skarn deposit.
This breccia pipe "will help Seabridge target the source of mineralization at the Iskut project in its entirety, thought to be a large gold-copper porphyry system at depth," Kozak wrote.
The analyst presented some of the noteworthy drill results from Iskut:
- SBS-22-05: 289m of 0.7 grams per ton (0.7 g/t) gold and 0.28% copper
- SBS-22-01: 446m of 0.28 g/t gold and 0.14% copper
- SBS-22-10: 42m of 0.43 g/t gold and 0.21% copper
More Exploration This Year
Seabridge plans to follow up these findings with more drilling at Iskut this year, at the Bronson Slope, Quartz Rise, and North Snip targets, noted Kozak. At Bronson Slope, the objectives are to expand the current Measured & Indicated resource and to pin down the source of the newly discovered breccia pipe.
The source is "currently hypothesized to be a gold-copper porphyry intrusive, similar in age to the company's flagship KSM project," Kozak wrote.
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Disclosures For Cantor Fitzgerald, Seabridge Gold Inc., January 9, 2023
The opinions, estimates and projections contained in this report are those of Cantor Fitzgerald Canada Corporation. (“CFCC”) as of the date hereof and are subject to change without notice. Cantor makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; however, Cantor makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents.
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Potential conflicts of interest: The author of this report is compensated based in part on the overall revenues of Cantor, a portion of which are generated by investment banking activities. Cantor may have had, or seek to have, an investment banking relationship with companies mentioned in this report. Cantor and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent.
Although Cantor makes every effort possible to avoid conflicts of interest, readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.
Disclosures as of January 9, 2023: Cantor has provided investment banking services or received investment banking related compensation from Seabridge Gold Inc. within the past 12 months. The analysts responsible for this research report do not have, either directly or indirectly, a long or short position in the shares or options of Seabridge Gold Inc. The analyst responsible for this report has visited the material operations of Seabridge Gold Inc. (KSM and Iskut). No payment or reimbursement was received for the related travel costs.
Analyst certification: The research analyst whose name appears on this report hereby certifies that the opinions and recommendations expressed herein accurately reflect his personal views about the securities, issuers or industries discussed herein.