Recent drilling at the Snip North target on Seabridge Gold Inc.'s (SEA:TSX; SA:NYSE.MKT) Iskut property further validates and expands the mineralization there. Find out what catalyst this analyst is looking for next from this company.
Recent drilling at the Snip North target on Seabridge Gold Inc.'s (SEA:TSX; SA:NYSE.MKT) Iskut property has further validated and expanded the copper-gold porphyry-style mineralization there, according to RBC Capital Markets Analyst Michael Siperco in an August 13 updated research note.
Management aims to establish an initial resource by early 2026, building on the existing Bronson Slope resource, wrote Siperco.
However, "We believe the key catalyst for Seabridge remains finding a senior partner to advance the large-scale KSM project toward a feasibility study and a construction decision, with a process currently underway (pending affirmation of substantially started status, hearing scheduled for September)," Siperco noted. "The rest of the portfolio however (including advanced projects Iskut and Courageous Lake) offer growing optionality and potential as sources of eventual funding (beyond 2025)."
Early work continues at KSM, with US$150 million in expenses planned for 2025, which Siperco said his firm views as a world-class gold/copper project with significant leverage to rising metal prices.
Siperco rated the stock Outperform, Speculative Risk, with a price target of US$35 per share, a more than 108%-return from the share price at the time of writing.
Seabridge released initial results from the 2025 exploration program at the Snip North target within the Iskut project in British Columbia, Canada, located about 50 kilometers from the KSM project and adjacent to Skeena's Snip project.
Siperco noted that the 12,000-meter drill program aimed to follow up on 2024 drilling that identified gold/copper porphyry-style mineralization at the site, enhancing understanding of the deposit and expanding its footprint.
The mineralized zone now measures 1,700 meters by 600 meters by 600 meters, an increase of roughly 10% from previous estimates, and shows consistent grades, with improved copper values in the latest results, the analyst wrote.
Key results included:
729 meters at 0.48 grams per tonne gold (g/t Au) and 0.16% Cu + Ag/Mo341 meters at 0.51 g/t Au and 0.11% Cu + Ag/Mo268 meters at 0.44 g/t Au and 0.15% Cu + Ag/MoManagement plans to release an initial resource estimate for Snip North in early 2026, following the completion of the 2025 program, which is fully funded at US$15 million, Siperco wrote. The broader Iskut property already contains an inferred resource at the Bronson Slope deposit of 5.4 million ounces (Moz) gold and 1.1 billion pounds of copper.
"We value the entire Iskut Project on a discounted in situ basis at $60m (~1% of NAV)," the analyst said. "Progress toward defining (an) economic deposit on the property could see significant further value surface vs. our model and potentially provide a source of funding for KSM."
Courageous Lake in the Northwest Territories, Canada, is another project in Seabridge's portfolio that could attract renewed interest with higher metal prices, supported by an updated pre-feasibility study (PFS) released in 2024.
The PFS outlined a US$747 million project producing 201,000 ounces of gold annually at an AISC of US$999 per ounce over a 13-year mine life, with a post-tax NPV5% of US$523 million and a 21% IRR at US$1,850 per ounce, Siperco noted. At current prices, RBC estimated the NPV5% of the project at approximately US$1.5 billion, with an IRR of about 45% and a payback period of less than 1.5 years.
"We value the project at ~$150m on an EV/oz basis and believe that the market ascribes minimal value to the project within Seabridge," the analyst said.
According to the report, Courageous Lake hosts a 2.8 Moz reserve at 2.6 g/t, with a larger 14.3 Moz M&I+I resource at approximately 2.4 g/t, potentially extending the mine life by 16 years, totaling nearly 30 years, as outlined in a separate 2024 PEA (preliminary economic assessment). The deposit consists of refractory ore, requiring additional processing as contemplated in the study.
Further advancing Courageous Lake, finding a partner, or selling the project to support KSM activities could serve as a significant positive catalyst for the company, Siperco noted. Although still in the early stages with permitting and additional studies needed, the economics of large-scale projects with long potential lifespans seem to be improving with rising prices, particularly in tier 1 political jurisdictions, with KSM being a prime example.
Siperco said in RBC's opinion, the main catalyst for the company remains securing a partner for KSM's development. Management is looking for a senior producer capable of providing funding through the feasibility stage and a construction decision, with an option to gain control. A partner with the resources and financial strength to advance the project to feasibility and construction could, Siperco said, validate the project, the latest updated studies, and the work completed so far, while offering Seabridge investors a chance to benefit from future potential gains if a positive construction decision is made.
Over US$800 million has been invested at the site since the Environmental Assessment Certificate was issued in 2014, with more than US$400 million spent on early KSM project construction since 2021. This includes investments in access road construction, a permanent camp, and early environmental work, the updated report noted.
Siperco said the Outperform, Speculative Risk rating assumes that a partner will be found, and a feasibility study will further confirm KSM's economic potential.
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Seabridge Gold Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
Disclosures for RBC Capital Markets, Seabridge Gold Inc., August 13, 2025:
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Our US$35.00 price target is based on an average 0.50x target multiple applied to our NAV8% estimate (RBC price deck, $2,600/oz Au, $4.00/lb Cu LT), a discount to covered developer peers, reflecting the stage of the project, potential partnership, longer-dated potential upside from unmodeled resources / projects and construction costs/complexity. Our price target supports our Outperform rating on the stock, and the Speculative Risk qualifier reflects the early-stage nature of the project and construction risk ahead.
Risks to rating and price target
o Partnership risk: Our target and recommendation largely depend on Seabridge finding first a partner to advance and fund a feasibility study, and then to assume operatorship of the project through construction and production. If a suitable partner is not found, or partnership terms differ from our assumptions, we see risk to our valuation and potential for material delays in advancement.
o Gold price: The project is most sensitive to the prevailing price of gold (and to a lesser extent, copper), outperforming in rising markets and underperforming when falling.
o Construction capex: Whether $6.4bn as outlined in the 2022 PFS, or our $7.3bn estimate on a smaller-scale initial project, KSM is highly sensitive to start-up capital.
o Remoteness and climate: While the paved highway, port, and airstrip provide access to the project, KSM is still a relatively remote project. Weather conditions will present challenges during construction and mine operations.
o Permitting: Environmental approvals are in place; however, significant additional permitting will need to take place prior to production.
o Project financing: Funding options for Seabridge/KSM will ultimately depend on the potential partnership agreement, development plan, revised capex figures, and future market conditions (including metal prices).
o Project opposition: KSM has seen past criticism from local groups and non-government organizations, primarily related to the impact on waters, rivers, and salmon spawning grounds.
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