Drill Data Shed Light on Geology at Yukon Gold Project

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Newly released plus historical results indicate mineralization is continuous between isolated deposits, noted a Red Cloud Securities report.

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) released the data generated through drilling last year at its 3 Aces gold project in the Yukon, reported Taylor Combaluzier, Red Cloud Securities vice president/mining analyst, in a February 15 research note.

“We believe these results help Seabridge in understanding the geological parameters controlling gold-rich mineralization, which could lead to further target delineation and eventually a maiden resource estimate at the project,” Combaluzier wrote.

265% Potential Return

Given the news, the analyst noted that Red Cloud reiterated its target price on the Canadian gold company of CA$46.50 per share.

In comparison, Seabridge is trading now at about CA$12.75 per share.

“We only value a nominal US$20 million in situ for 3 Aces (within our total NAV of CA$6.7 billion),” Combaluzier wrote. “As such, we consider any exploration upside at the project as a bonus upside to our target price.”

Given the current target and share price, the possible gain for investors now is 265%.

Seabridge remains a Buy.

Results in Brief

Combaluzier discussed the newly released information and provided some of the notable intercepts. Results are from about 7,800 meters (7,000m) of reverse circulation drilling done in the Central Core Area (CCA) of 3 Aces, around the Spades, Hearts, and Clubs zones.

One highlight result encountered in hole 3A23-381, drilled in the Clubs zone, was 0.81 grams per ton gold (0.81 g/t Au) over 111.2m, including 1.52 g/t Au over 41.2m.

Another standout finding, hit in hole 3A23-377 placed in the Hearts W zone, was 7.59 g/t Au over 7.2m, including 46.4 g/t Au over 1m.

Better Geological Understanding

Seabridge developed a three-dimensional deposition model of 3 Aces, using these new drill results and historical ones, Combaluzier reported. The model suggests mineralization between the deposits in the CCA is continuous.

“Mineralization is concentrated at the stratigraphic contact between sandstones and phyllites and gets wider, continuous, and higher grade where these contacts have gone through second-generation folding,” he described.

What Is Next?

Seabridge intends to investigate other possible areas in which gold may have been deposited in the system, Combaluzier wrote.

It also plans to follow up on any freshly identified targets and expand the mineralization in the known zones.

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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. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  3.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Red Cloud Securities, Seabridge Gold Inc., February 15, 2024

Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Investment Industry Organization of Canada (IIROC). Part of Red Cloud Securities Inc.’s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.

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