(MENAFN- Investor Ideas) Early drill data show the presence of gold mineralization at this explorer's second asset, noted a Cantor Fitzgerald research report.
Seabridge Gold Inc. (SEA:TSX; SA:NYSE) returned "encouraging results" from maiden drilling in the Snip North target of its Iskut gold-copper project in British Columbia, reported Cantor Fitzgerald analyst Mike Kozak, in a December 14 company update.
Five of the six drilled holes showed "near-surface mineralization over wide intervals, confirming the discovery of a new porphyry target," Kozak wrote.
He presented these highlight intercepts:
422 meters (422m) of 0.3 grams per tonne (0.3 g/t) gold from surface (hole SN-23-02) 252m of 0.61 g/t gold from 207m downhole (hole SN-23-04) 277m of 0.8 g/t gold from 178m downhole (hole SN-23-05)
Target Lower, Return Still High
In other news, Cantor Fitzgerald updated the Canadian metals explorer's outstanding shares, and this lowered the financial services firm's price target to US$32.75 per share from US$33.50, noted Kozak.
The return on investment, however, is still significant, at 177%, given Seabridge's current price of about $11.84 per share.
The company is a Buy.
KSM Still No. 1
Kozak pointed out that despite the early results of Iskut's Snip North, "virtually all of Seabridge's value" remains driven by its flagship asset, the huge, permitted KSM (Kerr-Sulphurets Mitchell) gold-copper-silver-molybdenum project in British Columbia.
There, the Toronto, Ontario-based company continues working toward the "substantially started" designation to ensure the Environmental Assessment Certificate issued for KSM stays valid for the life of the project.
What To Watch For
Seabridge plans to drill again at Iskut next year, Kozak wrote. In this upcoming program, management will target copper and hone in on potentially higher-grade areas, primarily at depth.
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