By The Gold Report
Source: The Gold Report 03/23/2017
View Original Article: https://www.streetwisereports.com/pub/na/iskut-could-be-as-important-to-seabridge-as-ksm
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.
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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.
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Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Seabridge Gold Inc. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.
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.
Read what other experts are saying about:
Seabridge Gold Inc.
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
Disclosure: 1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None. 2) The following companies mentioned in this article are sponsors of Streetwise Reports: Seabridge Gold Inc. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. 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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes. "}
Additional Disclosures for this Content
Paradigm Capital, Seabridge Gold Inc., March 16, 2017
The analyst (and associate) certify that the views expressed in this report accurately reflect their personal views about the subject securities or issuers. No part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations expressed in this research report.
Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated directly or indirectly from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and investment guidance and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.
1. The analyst does not have an ownership position in the subject company.
2. Paradigm Capital Inc. has assumed an underwriting liability for, and/or provided financial advice for consideration to the subject companies during the past 12 months.
3. Paradigm Capital Inc. expects to receive or intends to seek compensation for investment banking services from the subject companies in the next 3 months.
4. Paradigm Capital Inc. does not own greater than a 1% ownership position in the subject company.
5. The analyst does not have a family relationship with an Officer/Director of subject company.