Seabridge's Iskut project has the potential to be
another success story like its flagship, 100%-owned KSM project.
When Seabridge
Gold Inc. (SEA:TSX; SA:NYSE.MKT) closed the sale of its Castle-Blackrock claim block
interest in Nevada to Columbus Gold in February, Seabridge Chairman and CEO
Rudi Fronk noted that "the sale is part of a continuing program of
divesting non-core assets in order to focus resources on core holdings,
including the KSM and Iskut projects and the Snowstorm project."
Iskut was acquired when Seabridge purchased SnipGold Corp. in June, 2016.
According to Seabridge, the "2016 multi-pronged exploration program at
Iskut achieved its primary objective: to identify a prospective new porphyry
copper-gold system with a potentially intact epithermal precious metals zone
at its top, for drill testing in 2017."
One of the untested targets Seabridge will be focusing on, Quartz Rise,
"has all the all the hallmarks of a porphyry lithocap, a geological
feature found at the top of major porphyry systems throughout the
world," according to the company.
To understand the potential of Quartz Rise, Paradigm Capital Analyst Don
MacLean Sr, in a Mar. 16 research report, quoted Dr. Jeffrey Hedenquist,
considered to be the world's leading epithermal and lithocap expert, as
saying during a technical discussion with Seabridge, "All lithocaps have
feeder structures, but not all feeders have lithocaps," something that
MacLean found to be "a positive endorsement for the epithermal potential
below Quartz Rise."
MacLean goes on to highlight that although "it is still early days
for Iskut, we are excited about the prospects for a high-grade epithermal
discovery at Quartz Rise. The Iskut property appears to represent a more
intact porphyry-epithermal system compared to KSM, where the upper
(epithermal) parts of the system have been eroded or faulted away, leaving
behind only the massive Cu-Au porphyry bodies."
The Paradigm analyst points out "given that it is relatively uncommon
to find a fully preserved system (from porphyry to lithocap), we will be
eagerly watching to see how the Quartz Rise target will play out."
MacLean articulated Paradigm's investment thesis on Seabridge: "We
believe Seabridge provides investors with ownership in one of the most
strategically compelling and prolific copper‐gold
projects in the world, the KSM project in BC. Seabridge offers investors one
of the lowest market caps per ounce, as well as exploration sizzle with the
Iskut gold project."
"Steady refinements at KSM, as encapsulated in the Oct. 6 2016
Preliminary Economic Assessment (PEA), as well as large new land acquisitions
and exploration sizzle, make Seabridge a continuously improving takeover
candidate for a senior miner or partnership. Investors can expect a busy
drilling season at both KSM and Iskut," concluded MacLean.
