Seabridge Gold (TSX: SEA) has significantly increased the mineral resource estimates for its flagship KSM project in British Columbia, though the windfall comes from a calculator rather than a drill bit.
The company released updated figures on Tuesday reporting that measured and indicated gold resources rose by 6.8 million ounces, while copper climbed by 1.5 billion pounds. Silver and molybdenum also saw double-digit gains.
The shift is not the result of a new discovery. Instead, Seabridge updated its metal price assumptions to align with current market realities and the reporting standards of Tier 1 mining majors.
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For the first time in a decade, the company moved away from conservative long-term projections. It now models the project using gold at $2,000 per ounce and copper at $4.00 per pound, up from the previous $1,300 and $3.00 respectively. The change adds more ounces and pounds via updated cut-offs.
CEO Rudi Fronk noted that the adjustment is more than a paper exercise. As Seabridge seeks a joint-venture partner to help develop the capital-intensive project, bringing resource statements in line with modern pricing is a necessary step for high-level negotiations.
The update also saw a spike in inferred resources, adding nearly 13 million ounces of gold and 4.2 billion pounds of copper. While these figures do not yet meet the threshold for proven reserves, they suggest the deposit has a significantly larger footprint at higher price points.
Post update, KSM is now estimated to have measured and indicated resources of 95.5 million ounces of gold, 21.1 billion pounds of copper, 459.9 million ounces of silver and 837 million pounds of molybdenum. Inferred resources meanwhile stand at 84.4 million ounces of gold, 42.7 billion pounds of copper, 570 million ounces of silver, and 606 million pounds of molybdenum.
Located in the Golden Triangle of northwestern B.C., KSM remains one of the largest undeveloped gold-copper projects in the world. While the physical geology remains unchanged, the restatement provides a clearer look at the project’s potential economics in a sustained high commodity price environment.
Seabridge Gold last traded at $35.79 on the TSX.
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