November 2, 2021
Seabridge Gold Corp. (TSX:SEA, BUY, C$42.00 target, David A. Talbot) provided an update regarding the ongoing PFS work underway for its flagship KSM Au-Cu-Ag-Mo project in BC’s Golden Triangle. The updated PFS is anticipated in Q2/22 and is expected to incorporate the Snowfield acquisition into the greater KSM project. As we previously discussed (read more), Snowfield is expected to improve overall project economics, as the deposit could allow for an extended period of lower-cost open pit mining, thereby deferring higher-cost block caving later into the mine life. Importantly, early results from this years’ drilling program confirm the Snowfield geological model and block grades. Assays from the initial six holes drilled by the company at Snowfield closely match the grades in the resource model that was inherited by the previous owner. We also note that there is plenty of potential to enhance the project through an increase in reserves and production, which could potentially reduce payback and further defer capital expenditures associated with block caving should the open-pittable Snowfield and Mitchell deposits materially grow. Read more
