Seabridge drills long copper-gold intervals at Snip North

[Ben Graham]

Seabridge Gold (TSX: SEA; NYSE: SA) has cut broad porphyry-style copper-gold mineralization at its Snip North target in British Columbia’s Golden Triangle, boosting the district-scale potential near its shovel-ready KSM project.

The first three holes of a planned 12,000-metre program this season, which follow up on zones of strong potassic alteration and mineralization discovered last year, have extended Snip North’s footprint by cutting wide porphyry-style intervals with notable copper and gold grades, Seabridge said Tuesday in a statement. A first resource for Snip North is due for release early next year, CEO Rudi Fronk said.

“We are very excited by the early results from this year’s program,” Fronk said. “Our drilling is designed to achieve a density of pierce points needed for a maiden resource.”

Seabridge shares rose 0.3% to C$23 Tuesday afternoon in Toronto having earlier hit C$23.11. The company has a market capitalization of about C$2.3 billion.

Broad intervals

Snip North is part of Seabridge’s Iskut project, which includes the Bronson Slope deposit, the former Johnny Mountain mine and surrounding exploration targets. Snip North is one of those targets and sits in the northern part of the property.

The drills returned long mineralized intercepts, including 729 metres grading 0.48 gram gold and 0.16% copper from 62.5 metres down in hole SN-25-25. The interval included 254 metres at 0.77 gram gold and 0.31% copper. Two other holes extended mineralization along strike and down dip, confirming a mineralized footprint about 1,700 metres by 600 by 600.

Drills turning

Drilling activity in the Golden Triangle is surging this year. In June, Goliath Resources (TSX: GOT) ramped up its Golddigger (Surebet) program to about 60,000 metres and with nine rigs. Last month, Dolly Varden Silver (TSXV: DV) expanded its Kitsault Valley drill program to 55,000 metres from 35,000 metres spread across five rigs. The drills are to target the Homestake and Wolf deposits.

Tudor Gold (TSXV: TUD) has also drilled 6,000 metres in seven holes, focusing on the SC-1 zone at Treaty Creek. The project is a joint venture with American Creek Resources (TSXV: AMK) and Teuton Resources (TSXV: TUO). Drilling of up to 25,000 metres this year is possible, subject to receiving results and permits, Tudor has said.

Regional booster

Snip North is about 30 km by air from KSM, which means it could potentially benefit from that project’s proposed development and infrastructure. Drilling to date suggests a large porphyry system at depth, which could grow with further drilling.

Seabridge sees Snip North as a possible satellite deposit to KSM, potentially feeding into a central mill and processing facility if economics support it.

KSM, one of the world’s largest undeveloped gold-copper projects, has 12 billion tonnes of economic resources across five deposits. It now has an after-tax NPV of $15 billion at spot metal prices, Fronk told The Northern Miner in a recent interview.

KSM, which is fully permitted at the provincial and federal level, received a “Substantially Started” designation in July last year. Court hearings on challenges to that designation are scheduled for September 22–29. In July, Tudor took Seabridge and British Columbia’s Chief Gold Commissioner to court over KSM’s contested tunnels crossing under the Treaty Creek project. Early‑works spending exceeds $500 million, according to Seabridge.