Dahlman Rose Reiterates Buy Rating on Seabridge Gold (SA)

Dahlman Rose is out with a research report this afternoon, where it reiterates its Buy rating on Seabridge Gold SA; it has a $129.60 price target on the stock. The DR analysts cited the company's recent announcement that it is investing $7.3MM in exploration at its 100% owned Courageous Lake (CL) project. The company intends to upgrade more of the inferred resources within the current FAT open pit deposit, complete geotechnical drilling required to move toward a Preliminary Feasibility Study (PFS), and explore new targets along 53 kilometers of the Matthew's Lake greenstone belt. In 2010, the company successfully increased M&I gold resources by 2.5MM oz through a 22,000 meter drill program. As for valuation, the analysts noted, “We await the May economic study to adjust our model on CL. Our current model assumes ~8.8MM oz of contained gold will be mined over a 16 year mine life. Our model still leaves over 2.5MM oz contained in the ground based on current resources.”