Dallas, Texas 11/01/2013 (Financialstrend) – The $430 million market capitalized Seabridge Gold, Inc. (NYSE:SA) stock continues to take a beating at the browsers while the market analysts continue to provide the company leeway in developing its Deep Kerr mining property.
The case in point is the October 8 announcement by the mining firm that it had received very encouraging results from its test drills at the “Deep Kerr” core mining zone mining area. The company officials are hopeful of being able to establish a ball park figure of the potential reserve based on output over the next season of drilling. The highlight of the announcement was the fact that close to 75% of the test drill holes in the Deep Kerr area have revealed the existence of high grade mineral zones with indications of close to 0.5% of copper.
On October 29, the company further disclosed information it had obtained from five additional drills in the vicinity of earlier find in its ‘KSM Project in north western British Columbia, Canada”. The new findings indicated presence of high grade copper and gold deposits which are estimated to be 700 meters in depth. Post the announcement, the drilling activities have been shelved to wait out the ensuing winter season.
In a related development, the Canada based gold firm announced that it was in receipt of $3 million from Alamos Gold with respect to its ongoing process to acquire 100% stake in ‘Quartz Mountain Project located in Lake County”. The buyer is also liable to shell out additional $15 million in cash or 2% smelter royalty based on SA choice in the next 2 months.
Seabridge’s CEO and Chairman Rudi Fronk was quoted as saying “a significant portion of the funding required to advance our core Canadian projects – KSM and Courageous Lake – has been generated by the sale of assets such as Quartz Mountain to successful companies like Alamos Gold.”