Mining Co. Boosts M&I Resources by Nearly 1 Billion Tons
The upgrading of resources from Inferred to Measured and Indicated “should allow the company to demonstrate improved economics compared to [its] previous prefeasibility study,” noted a ROTH Capital Partners report.
Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) converted a significant amount of Inferred resources to the Measured and Indicated (M&I) category with its resource estimate update for KSM’s Mitchell and East Mitchell deposits, reported ROTH Capital Partners analyst Joe Reagor in an April 14 research note. This change “should benefit the project’s economic outlook in the upcoming prefeasibility study (PFS).”
Reagor presented the previous and current resource figures for both deposits.
At Mitchell, Indicated resources now are 1,667,000,0000 (1.667 Bt), up from 1.045 Bt. Measured resources decreased to 691,700,000 tons (691.7 Mt) from 750 Mt.
As for East Mitchell, previously Snowfield, Measured resources grew to 1.012 Bt from 190 Mt. Indicated resources went down to 746 Mt from 1.18 Bt.
The M&I resources for Mitchell and East Mitchell together stand at 4.118 Bt versus the pre-update total of 3.165 Bt.
“We see the aforementioned resource increase as a significant positive for the company as it works to complete an updated PFS” that could be “a significant positive catalyst for Seabridge,” Reagor wrote.
ROTH has a Buy rating and a $30 per share price target on Seabridge. In comparison, its current share price is around $21.49.
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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.
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