Mining Co.’s PFS Slated for June Release

The study is expected to reflect improved project economics, afforded by updated resources and synergies between the incorporated deposits, noted a Singular Research report.

Seabridge Gold Inc.’s (SEA:TSX; SA:NYSE.MKT) recently updated mineral resource estimates for its Mitchell and East Mitchell (previously Snowfield) deposits are expected to improve the project economics of KSM and, thus, increase its appeal to potential joint venture (JV) partners, reported Singular Research analyst Jim Marrone in an April 22nd research note.

The next step for KSM is a preliminary feasibility study (PFS) that incorporates the updated resource estimates and, for the first time, East Mitchell. The completed report is anticipated in June 2022.Marrone noted the Canadian mining company added 12,000,000 ounces (12 Moz) of gold in the Measured and Indicated categories and reduced Inferred gold resources by 0.2 Moz since its previous, December 2020, resource estimate.

Together, the two deposits are “expected to  create a single, very large, open-pit mining opportunity with improved economic projections.”

Marrone highlighted the PFS will likely reflect the synergies between Mitchell and its upper continuation, East Mitchell. Together, the two deposits are “expected to  create a single, very large, open-pit mining opportunity with improved economic projections.”

As such, the mine plan will likely include an increase in Proven and Probable gold reserves and better grades in the first production years, Marrone indicated. Underground block cave development will likely come later in the plan, thereby deferring the need to pay the high capex associated with it.

“These expected gains, along with higher metal prices, are expected to help offset the impact of inflation on materials and labor costs, in the updated PFS,” added Marrone.

The analyst also pointed out that the expected benefits to KSM by including East Mitchell in the PFS and mine plan “are further impetus of a potential JV partner.” Now is an ideal time for JVs to be effected, given the belief a bull gold market is starting and given the large producers have depleted reserves but robust balance sheets.

“The value of [KSM] will ultimately be realized via a JV with a major mineral producer,” commented Marrone. “While progress at Seabridge will remain slow and steady towards a JV, the direction continues to be positive.”

On Seabridge, Singular has a Buy rating and price target of $30 per share versus its current share price around $18.79 per share. This target reflects Singular’s belief the mining company warrants trading at an enterprise value: ounce of 30x in the intermediate term, versus its current roughly 20x, given recent operational developments and the potential for higher gold prices.

Disclosures:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Seabridge Gold Inc. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Important Disclaimers for Seabridge Gold Inc., April 22nd, 2022

The following disclosures relate to relationships between Singular Research and Millennium Asset Management, LLC
(“Millennium”) and companies covered by Singular Research and referred to in research reports.
This report has been prepared by Singular Research, a wholly owned subsidiary of Millennium which is an investment advisor registered
in the State of California. Singular Research receives fees from Millennium for the right to use and distribute research reports prepared
by Singular Research.

Millennium does and seeks to do business with companies covered in Singular Research’s research reports. Millennium may receive
fees from issuers that are the subject of research reports prepared by Singular Research for investor and public relations and other
marketing-related services provided to such issuers by Millennium. As a result, investors should be aware that Singular Research and
Millennium may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only
a single factor in making their investment decision.

General Disclosures
This research report is for our clients informational purposes only. This research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. Any opinion expressed in this report is subject to change without notice and may differ or be contrary to opinions expressed by other professionals or business areas of Singular Research or Millennium. We are under no responsibility to update our research.

The views expressed in this research report accurately reflect the responsible analyst’s personal views about the subject securities or issuers. No part of the analyst’s
compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that analyst in the research report.
Millennium and its affiliates, officers, directors, and employees, excluding analysts, will from time to time have long or short positions in, and buy or sell, the securities
or derivatives thereof of covered companies referred to in our research reports. Our affiliates, officers, and directors won’t execute on any new recommendation or
recommendation change until 48 hours after the dissemination of the report.

This research is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It does not
constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. The price and value of the investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Certain transactions, including those involving futures, options, and other derivatives, give rise to substantial risk and are not suitable for all investors.