Seabridge to spin out Northwest Territories gold project

Core Viewpoint - Seabridge Gold plans to spin out its subsidiary owning the Courageous Lake project, aiming to unlock its value overshadowed by the KSM project [1][8] Project Overview - Courageous Lake is one of Canada's largest undeveloped gold projects, with an estimated 11 million oz. of gold in the measured and indicated category and an additional 3.3 million oz. in the inferred category [2] - The project has 2.8 million oz. of proven and probable reserves at an average grade of 2.6 g/t, making it one of the highest-grade open-pit gold projects in Canada [2] Spin-Out Details - The new entity, named Valor Gold, will focus on exploration, engineering, and permitting for the Courageous Lake project, with shares distributed to Seabridge shareholders [3] Economic Assessment - An updated preliminary feasibility study indicates a potential open-pit gold mine with an average annual production of 201,000 oz. over a mine life of approximately 12.6 years [4] - At a gold price of $1,850/oz., the project's after-tax net present value (NPV) is $523 million, with an internal rate of return (IRR) of 20.6% and a payback period of 2.8 years; at $2,500/oz., the NPV increases to $1.1 billion, IRR to 38.2%, and payback to 1.6 years [5] Expansion Potential - A new preliminary economic assessment suggests potential for mine life extension by evaluating additional inferred resources and satellite pits, such as the Walsh Lake deposit, which has an inferred resource of 555,000 oz. of gold [6][7] - Less than 15% of the 500 km² land package has been explored, indicating significant upside potential [7] Management Perspective - The company believes Courageous Lake holds substantial value and additional district potential in a Tier 1 jurisdiction, which is not currently reflected in Seabridge's share price [8]