New company to focus on renewed N.W.T. Courageous Lake gold project

Seabridge Gold says it plans to spin out its large but somewhat sidelined Courageous Lake gold project in the Northwest Territories into a new standalone company named Valor Gold, subject to regulatory approvals.

Courageous Lake is about 240 kilometres northeast of Yellowknife, with access envisioned by spur road to the Tibbitt to Contwoyto winter road that serves the diamond mines.

Seabridge Gold Inc. said it would continue to focus primarily on its flagship KSM gold-copper project in British Columbia and other exploration assets, while Valor Gold would concentrate on advancing Courageous Lake through exploration, engineering and permitting.

It's a move Seabridge CEO Rudi Fronk says will unlock value for shareholders and hopefully revive the relatively dormant project.

"Courageous Lake ... is worth quite a bit if you look at the engineering studies we've done," Fronk told CBC in an interview.

"Our view is that Courageous Lake is not being reflected at all in our share price. So this is a way to put a spotlight on Courageous Lake outside of the shadow of KSM and in its own light."

The deposit at Courageous Lake has been a Seabridge asset for more than 15 years and was once counted by the N.W.T. government as among potential backstops to job and other economic losses once the territory's diamond mines went into closure.

'An incredible district'

Seabridge reports measured and indicated resources of 11 million ounces of gold, with an additional 3.3 million ounces in the inferred category.

The project also includes proven and probable reserves of about 2.8 million ounces, which would place it, the company says, among the highest-grade open-pit gold projects in Canada.

"It'll be one of the largest gold mines in Canada as we now have it designed, capable of producing over 200,000 ounce of gold a year for a long life at reasonable operating and capital costs," Fronk said.

"This will be a big plus to the Northwest Territories in terms of an economic anchor."

The timing hasn't been perfect in terms of being ready to go once the diamond mines close, but record-high gold prices have recently buoyed northern mining projects.

And Fronk said the work Seabridge has already done to prove resources at Courageous Lake means it could begin operation in five to eight years.

Karen Costello, the executive director of the NWT and Nunavut Chamber of Mines, is optimistic this could be the right time for Seabridge's move.

"Spinning it out ... when gold is receiving a lot of focus internationally, allows them to hopefully attract interest to further advance that project," she said.

"It's in an incredible district."

Next steps

The company filed an updated NI 43-101 technical report for Courageous Lake in February 2024, including a preliminary feasibility study and a preliminary economic assessment.

At a gold price of $1,850 US an ounce, the feasibility study outlines a mine life of about 12.6 years, average annual production of roughly 200,000 ounces of gold, and an after-tax net present value of $523 million US.

At higher gold prices, Seabridge says the project’s economics improve substantially.

Beyond the main deposit, Courageous Lake also hosts a smaller satellite deposit known as Walsh Lake, as well as a broader land package of roughly 500 square kilometres, much of which remains unexplored.

Seabridge says next steps include formally establishing Valor Gold, which remains subject to regulatory and other approvals, ensuring it has sufficient initial financing, and advancing exploration for additional satellite deposits. The company expects to provide an update on the proposed spin-out in the first quarter of 2026.