Iskut could be as important to Seabridge as KSM

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?EUR?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.

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