Mining Giant's Metallurgical Tests Find 85% Gold Recoveries in BC's Golden Triangle

1. Seabridge Gold Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Seabridge Gold Inc.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. 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.

1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced promising results from its first-ever metallurgical test program conducted on drill core samples from the Snip North Deposit, situated within the Iskut Gold-Copper Project in British Columbia's renowned Golden Triangle, according to a release on March 2.

The company confirmed that the mineralization at Snip North is highly receptive to conventional flotation methods, promising substantial recovery rates.

The testing involved a detailed examination of 10 drill-core interval samples and four composite samples collected during the 2025 exploration season, Seabridge said. These samples were processed at ALS Metallurgy in Kamloops, British Columbia, marking a significant milestone as the first comprehensive metallurgical evaluation of the Snip North deposit. The testing protocol mirrored the flotation flow sheet used in Seabridge's KSM Project, suggesting similarities in the metallurgical characteristics between Snip North and the Mitchell deposit.

"These robust metallurgical results from the Snip North maiden test program provide a strong foundation to support the upcoming maiden resource estimate," said Seabridge Chair and Chief Executive Rudi Fronk.

The results from the locked cycle tests (LCTs), which used a primary grind size of 80% passing roughly 130 µm, revealed high-grade copper-gold-molybdenum concentrates. These concentrates showed copper grades between 20% and 28% and gold grades ranging from 83 grams per tonne (g/t) to 525 g/t, derived from head grades of 0.04% to 0.26% copper and 0.4 g/t to 1.21 g/t gold. The recovery rates for both gold and copper in the bulk flotation concentrates were notably high, and the tests indicated the feasibility of producing a separate molybdenum concentrate. After the separation of molybdenum concentrate, further increases in copper and gold grades are anticipated.

Additionally, cyanide leaching tests on the initial three pyritic concentrates from the LCTs demonstrated excellent recovery rates, with overall gold recoveries climbing to between 85.3% and 92.7%, the company said. Initial bond work index tests also suggested that the mineralization is relatively soft, with results ranging from 9.9 to 11.9 kW-hr/tonne, indicating suitability for conventional SAB or SABC grinding circuits.

These findings not only confirm a robust metallurgical response to flotation but also support the development of a maiden resource statement for Snip North.

This development marks a significant step forward in the assessment and potential exploitation of the Snip North Deposit.

The Birth of Valor Gold Corp.

Last month, Seabridge announced its intentions to divest its complete ownership of the Courageous Lake gold project located in the Northwest Territories. Detailed in a January 21 release, the company is preparing to establish Valor Gold Corp. as a separate entity, which will be wholly distributed to Seabridge shareholders. This distribution is planned through a court-approved plan of arrangement under the Canada Business Corporations Act.

Seabridge has scheduled a shareholder meeting for June 2026 to seek approval for this spin-out. Valor Gold Corp. is set to seek listings on the Toronto Stock Exchange (TSX) and the OTCQB Venture Market in the USA, with considerations for a future listing on the NYSE. The commencement of trading of Valor shares is targeted for before the end of the second quarter of 2026, contingent upon the approval of the shareholders, securing a final court order, and the successful completion of the spin-out process.

In preparation for its independence, Valor will be equipped with CA$10 million in cash to fund anticipated work programs and cover corporate general and administrative costs. Seabridge has engaged DuMoulin Black as its Canadian legal counsel and Dorsey Whitney as its U.S. attorney to facilitate the spin-out.

Furthermore, Seabridge revealed that, contingent on the shareholder approval of the spin-out, Mark J. Ashley is set to lead Valor as Chief Executive Officer and serve on its board. Ashley, who boasts over four decades of experience at the senior executive and board levels within the global mining sector, has a distinguished history of leadership roles across various publicly listed mining companies on the TSX, ASX, UK, and U.S. exchanges. His career highlights include significant achievements in project development, operational management, and strategic corporate transactions, which have collectively fostered substantial value creation.

Analyst Raises Target Price

Seabridge recently saw its target price increased by Cantor Fitzgerald after the financial services firm raised its estimates for gold and silver prices, according to a macro note by Mike Kozak and other metals and mining analysts dated January 12.

"The benefit of higher gold and silver prices should begin translating to material improvement to margins, earnings, and cash flow with the Q4/25 results (reporting begins late February) and then continue to accelerate with the Q1/26 results," the Cantor analysts wrote. They noted that factors expected to offset this improved performance include typical mining industry cost inflation, increased wages and salaries, higher tariff-driven capital costs for items like steel and processing reagents, increased royalty payments, and lower average head grades. The latter is due to the depletion of Proven and Probable reserves and lower cutoff grades driven by a higher gold price.

Cantor's new target price for Seabridge is CA$66 per share, indicating a 72% upside, Kozak noted. The company remains a Buy. The Ontario, Canada-based mining junior recently completed a US$100 million equity financing, with an unnamed investor contributing US$20 million.

While advancing its other assets, Seabridge is seeking a joint venture partner to further develop KSM.

"We continue to believe that Seabridge will be successful in signing a joint venture agreement with a major mining company on project accretive terms," Kozak wrote, adding that Cantor expects this to occur in the first half of 2026. Another potential catalyst for Seabridge's share price in 2026 is the completion of the spinout and listing of its 100%-owned Courageous Lake gold project in Canada's Northwest Territories as Valor Gold, also anticipated in the first half of 2026. Additionally, a maiden mineral resource estimate for the Snip North deposit at its Iskut project in B.C. is expected in the first quarter of 2026.

In a December 17, 2025, updated research note, Red Cloud maintained its target price for Seabridge at CA$74.50 per share, while the stock was trading at approximately CA$40.17 per share at the time of the report. This difference suggests a potential return of 85% for investors. Seabridge remains rated as a Buy.

Red Cloud viewed the Courageous Lake spinout positively, believing the market undervalues the project within Seabridge, with the current share price largely reflecting its flagship KSM project in British Columbia. In Red Cloud's post-financing net asset value per share discounted at 5% (NAVPS5%) for Seabridge of CA$111.80, Courageous Lake accounts for about 13%, or CA$14.75 per share.

Meanwhile, Seabridge's main focus remains on advancing the KSM project, Combaluzier noted. Near-term activities include completing the power switching station and finalizing a feasibility study, with funding secured from its CA$100 million financing earlier in 2025.

According to Factset, the following firms all have Buy recommendations on Seabridge: B. Riley Securities' target price is CA$88.97 per share, Cantor Fitzgerald's is CA$66, and RBC Capital's CA$87.20.

The Catalyst: Safe-Haven Worries Set Gold Off Once More

Gold prices experienced a significant surge on Monday as investors sought refuge in safe-haven assets following major military actions by the U.S. and Israel against Iran, Peter Nurse reported for Investing.com on March 2.

This escalation raised concerns about a potential broader conflict in the region. At 08:55 a.m. ET, spot gold had risen by 2.2% to US$5,394.26 an ounce, having earlier touched a session high of US$5,419.32/oz, marking the highest level since late January. Concurrently, U.S. Gold Futures saw a 3.1% increase to US$5,410.34/oz.

The intensifying conflict in the Middle East, particularly the sustained bombings in Iran and the significant development of the killing of Iran's Supreme Leader, Ayatollah Ali Khamenei, has heightened fears of a wider regional disturbance. This includes potential disruptions to oil flows through the Strait of Hormuz, an essential conduit for global energy supplies. This geopolitical tension prompted a classic risk-off reaction across financial markets, with stocks declining and crude oil prices spiking, thereby boosting the appeal of gold as a reliable store of value.

Analysts from ING highlighted the implications of the conflict, noting, "A regional spillover or disruption to energy supplies would materially boost gold through higher oil prices, increased inflation expectations and contained real yields."

According to Nurse, Michael Brown, Senior Research Strategist at Pepperstone, further elaborated on the market dynamics, stating, "Importantly, it is not only the risk of escalation, or broader conflict, that markets must now discount, but also the considerably wider range of potential outcomes that now exist, given kinetic action is underway." He described the current market strategy as a ‘de-risk now, ask questions later’ approach due to the complexities in accurately pricing risk under such uncertain conditions.

Looking ahead, Michael Brown from Pepperstone pointed out that the US$5,400/oz level and the late-January peak of US$5,595/oz are critical to watch for further upward movements in gold prices. He also projected that gold could potentially reach as high as US$6,000/oz by the end of the year, driven by ongoing geopolitical uncertainties, robust retail and reserve demand, and the fundamental bullish outlook for the precious metal. Gold's price has already climbed nearly 25% this year, bolstered by geopolitical risks, central bank acquisitions, and anticipations of policy easing by the Federal Reserve.

Analysts at SP Angel have observed that increasing geopolitical tensions are leading BRIC central banks to shift their investments from dollar-denominated assets to gold, a trend they believe will persist, CNBC reported on March 1. Gold, traditionally seen as a stable asset during volatile times, has achieved several record highs and has appreciated nearly 25% this year alone. This surge continues the metal's remarkable performance from 2025, where it saw a 64% increase, driven by significant buying from central banks, substantial inflows into exchange-traded funds, and a move towards more accommodative monetary policies in the U.S.

In a related commentary, BNP Paribas highlighted the crucial role of physical gold investment demand this year, CNBC said. The bank noted that physically backed ETFs have already added about 2 million ounces to their holdings this year. Additionally, BNP Paribas anticipates that purchases by Chinese bar and coin investors will surpass the levels seen in 2025, further bolstering the market for gold.

Ownership and Share Structure¹

Management and insiders hold approximately 3% of the company, while institutions own about 62%. The remainder is held by retail investors.

Friedberg Mercantile Group Ltd. holds 15.49%, Pan Atlantic Bank and Trust owns 10.23%, Van Eck Associates Corp. has 6.86%, and Kopernik Global Investors L.L.C. possesses 6.69%.

There are around 104.35 million shares outstanding, with the company having a market cap of CA$5.61 billion and trading within a 52-week range of CA$13.44 to CA$53.78.