Tag: Seabridge Gold Inc.

Seabridge Gold reported updated mineral resource estimates for its Michell and East Mitchell (formerly Snowfield) deposits, two of the five deposits at its 100%-owned KSM project in BC. M&I+I resources increased by 16% for Au, 35% for Cu, 26% for Ag and 22% for Mo. We view this update positively as we see this resource update leading to a likely increase in proven and probable reserves, better grades early in the mine life and a deferral of the capital-intensive underground block-cave development at KSM.

Seabridge Gold is planning to go greener during its construction phase, as it has signed an agreement with BC Hyrdro to supply electricity for construction of its 100%-owned KSM project. We view this news very positively as previous studies had incorporated the use of much higher cost, diesel power for construction activities, with grid connection only anticipated later for operations. A move to grid power should not only decrease capex and lower share dilution, but has permitting implications, helping ensure that the Environmental Assessment Certificate (EAC) stays in place for life of the project. With this news and its recent US$225M note, we believe KSM is moving towards the designation of ‘substantially started’ while de-risking it towards a JV arrangement, financing and production decision.