Seabridge Gold Inc. continues to evaluate other potential traps for gold deposition in the system, according to a Red Cloud Securities research note.
Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) recently announced drilling results from its 2023 RC campaign consisting of approximately 7,800 meters at the wholly-owned 3 Aces gold property in Canada’s Yukon territory, according to Red Cloud analysts Taylot Combaluzier and David Talbot in a February 15 research note.
The company focused on the Central Core Area of the Spades, Hearts, and Club zones.
Seabridge highlighted the 0.81 g/t gold (Au) over 111.2 meters at the Club zone, and from the Hearts W zone, 7.59 g/t Au over 7.2 meters. The report noted that Seabridge had constructed a three-dimensional model portraying potential mineralization within the Central Core Area across the other zones.
The company found the mineralization was concentrated where there is contact between sandstones and phyllites, and noted that it appears to get wider and have high grades where these contacts go through “second-generation folding.”
“The company continues to evaluate other potential traps for gold deposition in the system and plans to follow up on these targets and expand existing gold zones,” the analysts said. “We only value a nominal US$20 million in-situ for 3 Aces (within our total NAV of CA$6.7 billion), and as such, we consider any
exploration upside at the project as a bonus upside to our target price.”
The analysts gave Seabridge Gold a Buy rating and a CA$46.50 target price, which they noted was a 265% lift from the share price at the time.
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