HIGH LEVERAGE PERPETUAL OPTION ON GOLD
Business Summary
Seabridge Gold is designed to provide its shareholders with maximum leverage on a rising gold price.
Over the past three years, while the gold price was low, Seabridge acquired 13.8 million ounces of gold resources, all in North America, including the 5.7 million-ounce Courageous Lake deposit.
More recently, as the gold price has risen, Seabridge has "banked" more than 25 high-grade gold
exploration projects in Nevada. The aim is to continue adding gold resources through further
acquisitions and exploration funded largely by partners.
"Our research shows that a dollar invested in Seabridge current shares at common prices
provides ownership of more gold than a dollar invested in any other public North American gold vehicle".
Each Seabridge share represents an industry-leading 0.5 ounces of fully-diluted gold.
Recent Developments: Drilling Begins at Thunder Mountain Gold Project
Seabridge has announced that the initial phase of a 6,000 foot drill program is underway at the Thunder Mountain gold project in Nevada which is designed to test targets similar to, and on strike with, the Midway gold-silver deposit (now being explored by Newmont) immediately adjacent to the northwest.
The first two targets being drilled are the margins of a rhyolite intrusion and a hydrothermally altered zone at a projected structural intersection. These targets contain the most extensive past production, favorable geochemical indicators, highest temperature mineral assemblages in the altered rock, and discrete geophysical targets (magnetic and VLF).
The second phase of the drilling will be undertaken after a hiatus to return assays from the
first several holes.
The 4,500-acre, 228 claim Thunder Mountain project, located 25 miles east of Tonopah, Nevada,
is a joint venture between a 75% owned subsidiary of Seabridge and Castleworth Ventures, Inc.
Castleworth can earn a 50% interest in the project by (i) spending US$1.5 million in exploration over a three-year period and (ii) issuing 1.5 million of its common shares. At the completion of the earn-in, a 50-50 joint venture will be formed with Castleworth as operator.
Fundamental Considerations
Seabridge has been designed to provide its shareholders maximum leverage to the price of gold.
The company has acquired a 100% interest in 13.8 million unhedged ounces of gold resources in North America, of which 8.0 million ounces are measured and indicated.
Seabridge has 0.50 ounces of gold resources per fully-diluted share and offers thus excellent
exposure to a rising gold price.
Technical Considerations
As Seabridge represents a perpetual option on a rising gold price, an investor must actually be convinced that the gold price will be rising.
The correction of the gold price ended where it had to end, and since remains in its long-term
up-trend.
As the share price of Seabridge strongly reacts to the price of gold and the correction of the gold price has run its due course, we believe that the timing is right to continue accumulating these shares.
Our recommendation: BUY!
Peter Zihlmann, www.pzim.com, or email to forex@pzim.com
May 7, 2003
Disclosure: The author has not been paid to write this article, nor has he
received any other inducement to do so. The author is a shareholder in the
company and will benefit from any increase in the company's share price.
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