NEW YORK ( TheStreet) -- Yesterday the long-suffering shareholders of Seabridge Gold ( SA) finally experienced the sweet feeling of a 10% one-day rally.
Seabridge Gold hasn't been a pleasure to own the past three years. The 5-year chart compares the movement of SA's share price with its price-to-book value. Both have cratered until good news hit the markets Wednesday. Yes, Wednesday was the day SA reported final results from its 2012 drill program designed to search for high-grade core zones underlying its very large Kerr Sulphurets Mitchell gold-copper project in British Columbia. The remaining hole at Deep Kerr provides strong confirmation that the discovery (part of KSM) has the potential for a very large tonnage of high-grade copper and gold mineralization. The Deep Kerr hole reported long runs of elevated copper including 22 meters of 0.98%. Drilling also found three more targets with favorable markers characteristic of core zones. The $15 million 2013 drill program to pursue these targets is expected to begin in June of 2013. Someone said, "A goldmine is a deep hole where people throw away their money." That outlook changes big time when rich veins of gold and other precious metals are extracted as proof that all that digging and exploring was worthwhile. SA data by YCharts Seabridge Chairman and CEO Rudi Fronk noted, "when we began our search for a core zone at KSM, we assumed that the four main deposits would probably link to one such zone. We now believe that there may be several deep seated sources.