Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced positive initial drill results from its Snip North target at the Iskut project in British Columbia's Golden Triangle, noted Red Cloud analysts Taylor Combaluzier and David Talbot in a December 15 research note.

Highlights included 0.80 grams per tonne (g/t) gold and 0.07% copper over 277 meters and 0.61 g/t gold and 0.07% copper over 252 meters.

The Red Cloud analysts view these results as confirming the potential for a significant underlying porphyry system.

While grades remain modest currently, they believe the core higher-grade porphyry source sits below these drilling depths. Follow-up drilling planned for 2024 aims to vector toward this target.

Valuation and Upside

The analysts maintain a Buy rating and CA$45.25 price target on Seabridge Gold.

With shares at CA$16.28 currently, this target implies 178% upside potential.

The firm's thesis focuses on the company's flagship KSM project, where Red Cloud expects Seabridge to apply soon for its "substantially started" designation. This would help de-risk KSM and support the company's pursuit of a joint venture partner.

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Disclosures for Red Cloud Securities, Seabridge Gold Inc., December 15, 2023

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