TORONTO - Seabridge Gold Inc. (TSX:SEA) (NYSE:SA) has announced significant drilling results from its Iskut project in British Columbia's Golden Triangle. The company reported on Wednesday that the first phase of the 2024 exploration drilling at the Snip North target has intersected substantial widths of gold and copper mineralization.
The drilling outcomes revealed broad intervals with notable gold and copper grades within a large potassic alteration system. The findings suggest the presence of a porphyry intrusive source, which could potentially contain mineable quantities of these metals. The mineralized package, hosted in the Triassic Stuhini Formation, is several hundred meters thick with dimensions of approximately 1.5 km by 500 meters.
Key intercepts from the drilling program include 303 meters of 0.75 grams per tonne (gpt) gold and 0.10% copper in hole SN-24-17, 478 meters of 0.49 gpt gold and 0.13% copper in hole SN-24-18, and 532 meters of 0.48 gpt gold and 0.10% copper in hole SN-24-20. The true thickness of these intervals is not yet determined, requiring further drilling to understand their true width.
Rudi Fronk, Chairman and CEO of Seabridge, expressed optimism about the drilling results, indicating that the company is in the process of uncovering the porphyry potential at Iskut, which was a key factor in the project's acquisition.
The exploration program aims to find intrusive rock with the veining and alteration characteristic of a porphyry Cu-Au mineral deposit. The extensive potassic alteration and the role of chemically reactive tuffaceous rocks bolster the likelihood of a robust source for the mineralization.
Seabridge Gold, which holds a 100% interest in several North American gold projects, has its principal assets in Canada's "Golden Triangle" and other locations. The company's mineral reserves and resources are detailed on its website.
The data released has been approved by William Threlkeld, a qualified person under NI43-101. Assay precision is maintained by systematic insertion of standards and duplicates, with samples analyzed at ALS Laboratories in Langley, BC.
This announcement is based on a press release statement, and further exploration will be required to validate the drilling results and to ascertain the full potential of the Iskut project.
InvestingPro Insights
As Seabridge Gold Inc. (NYSE:SA) reports promising drilling results from its Iskut project, investors might be interested in additional financial insights. According to InvestingPro data, Seabridge Gold has a market capitalization of $1.5 billion, reflecting significant investor interest in the company's potential.
InvestingPro Tips highlight that Seabridge Gold has shown a strong return over the last three months, which aligns with the positive drilling results announced. The stock has seen a 20.16% price total return over the past three months, indicating growing market confidence in the company's exploration activities.
Another relevant InvestingPro Tip notes that Seabridge's liquid assets exceed short-term obligations, suggesting a solid financial position to continue its exploration efforts. This financial stability is crucial for mining companies engaged in extensive drilling programs like the one at Iskut.
It's worth noting that InvestingPro offers 8 additional tips for Seabridge Gold, providing a more comprehensive analysis for investors interested in the company's prospects.
While the drilling results are promising, investors should be aware that Seabridge Gold is currently trading at a high P/E ratio of 203.66, indicating high growth expectations. The company's EBITDA for the last twelve months as of Q2 2024 stands at -$13.62 million, with an EBITDA growth of 18.78% over the same period.
These financial metrics, combined with the recent exploration success, paint a complex picture of Seabridge Gold's current position and future potential in the mining sector.
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