KSM Project (Image: Seabridge Gold)

KSM Project (Image: Seabridge Gold)

Seabridge Gold (SEA.T)  is developing the monster KSM deposit in British Columbia. The project already boasts proven and probable reserves of 38.2 million ounces of gold and 9.9 billion pounds of copper. Drill results from the Lower Cap zone are outlining a major new copper-gold discovery below the Iron Cap zone.

Seabridge ranks seventh when it comes to gold companies and total reserves with 45 million ounces ahead of Kinross and Agnico-Eagle. With only 47.8 million shares out Seabridge has reserves of just under one gold ounce per share (0.93 ounces per share). This would rank them first on a reserves per share basis when compared to leading gold companies by a wide margin as Newmont is second with .20 ounces per share.

Drill results issued today from the Lower Cap zone are impressive and will add to the total reserves numbers.

Drilling highlights

  • IC-14-059 - 592.7 meters of 1.14 g/t gold and 0.37% copper
  • IC-14-057 - 424.4 meters of .40 g/t gold and .20% copper
  • IC-14-060 -401.3 meters of .47 g/t gold and .17% copper

An initial resource estimate on the Iron Cap zone is expected in the first quarter of 2015.

Commenting on the news, chairman and chief executive officer Rudi Fronk noted: "We are just beginning to define the size and shape of the Lower zone at Iron Cap. Thus far, we have traced the deposit along a strike length of about 750 metres but the limits have not been found to the north and at depth. Drill grades are running higher than the average reserve grade for the Iron Cap zone found above. The highest-grade areas are in the north, where IC-14-059 intersected a spectacular 592.7 m averaging 1.14 grams per tonne of gold and 0.37 per cent copper."

Seabridge stock has been on been one of the better performing gold equities in 2014 up from $8.50 to the current price of $10.60. The volatility in the stock is high as it is very leveraged to the gold price. The decline in September was due to the overall market sell off in commodity stocks.

seabridgeytdchart

A major catalyst for the stock is the Federal environmental assessment decision which is expected in November. Seabridge received a favourable BC environmental assessment in July.

Symbol: SEA.T

Share price: $10.63

Shares outstanding: 47.08 M

Market cap: $500.5 M

Read: Seabridge Gold Drilling Builds Resource Potential at KSM's Iron Cap Lower Zone

I have no position in any of the stocks mentioned. This is not investment advice. As always please do your own due diligence.