Seabridge Gold Inc. (TOR: SEA)

By: Peter Zihlmann | Thu, Nov 13, 2008
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FOLLOW-UP NO 6 / NOVEMBER 13, 2008

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SEABRIDGE GOLD: RETURN ON CAD 20,000 INVESTMENT
Purchase Date No. of Shares Purchase Price Cost ($) Price Today Value Today
January 10, 2003 3'300 3.01 9'933.00    
April 29, 2003 4'600 2.15 9'890.00    
Total 7'900 2.51 19'823.00 12.45 98'355.00
Profit 78'532.00
Profit (in %) 396%

SHARES OUTSTANDING / FULLY DILUTED MARKET CAP
37,298,885 / 38,476,185 CAD 440.7 Million
52 WEEK LOW / HIGH TSX
CAD 7.50 to 35.16 14,700 (200-day)
RECOMMENDATION RISK RATING
BUY HIGH

HIGH LEVERAGE PERPETUAL OPTION ON GOLD

Business Summary

Seabridge Gold Inc. is designed to provide its shareholders with exceptional leverage to a rising gold price.

From 1999 through 2002, when the gold price was lower, Seabridge acquired nine North American projects with substantial gold resources, including the multi-million ounce Courageous Lake and Kerr-Sulphurets deposits. Subsequent exploration by Seabridge has significantly expanded its acquired gold resource base.

Seabridge measures its performance by increasing its gold resources per common share. Project acquisitions and exploration programs are carefully chosen to ensure that equity dilution required to fund these activities is more than offset by additional ounces of gold resources.

Seabridge is pursuing three value-enhancing strategies:

Projects

Kerr-Sulphurets-Mitchell: HIGHLIGHTS

All disclosure of a scientific or technical nature in respect of the Kerr-Sulphurets Project below, other than the resource estimate calculated by Placer Dome (CLA) Limited, was prepared by, or under the supervision of, William E. Threlkeld (Licensed Registered Geologist #790 in the State of Washington), a Vice President of Seabridge. Mr. Threlkeld is a "qualified person" under National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101").

Courageous Lake: HIGHLIGHTS

Nevada Exploration: HIGHLIGHTS

Noche Buena: HIGHLIGHTS

Grassy Mountain: HIGHLIGHTS

All disclosure of a scientific or technical nature in this Annual Information Form in respect of the Grassy Mountain Project, other than the resource estimate calculated by Pincock Allen & Holt, was prepared by, or under the supervision of William E. Threlkeld (Licensed Registered Geologist #790 in the State of Washington), a Vice President of Seabridge. Mr. Threlkeld is a "qualified person" under National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101").

Red Mountain: HIGHLIGHTS

Quartz Mountain: HIGHLIGHTS

Castle-Black Rock: HIGHLIGHTS

Hog Ranch: HIGHLIGHTS

Recent Developments: Seabridge Gold's KSM Project Continues to Expand / New Drill Results Exceed Program Objectives

Results from another nine holes drilled this summer at the Kerr-Sulphurets-Mitchell ("KSM") project continue to confirm the geological model and extend the resource area to the north and at depth. Five of these were successful infill drill holes which are expected to upgrade a significant portion of the project's inferred resources to the indicated category. Hole M-08-73, a deep drill test following the northwest plunge of the Mitchell zone, confirms the continuity of this zone beyond the current model. Three geotechnical holes drilled to test the proposed north and south pit walls identified several zones of mineralization within the conceptual pit which had been classified in the geological model as waste.

To date, Seabridge has reported on 19 holes drilled this summer at KSM of which five are exploratory, 11 are infill and tree are geotechnical (intended to evaluate slope stability for mining operations). Results from another 11 holes are awaited. A total of 17,000 meters were drilled in the now completed program.

Seabridge Gold President and CEO Rudi Fronk said the new results have "exceeded our expectations. We will now need to expand our geological model to incorporate extensions of the high grade plunge of the Mitchell zone and to redefine material in the pit slopes that is currently classified as waste. In addition, the success of our infill program should mean a significant conversion of inferred resources into the measured and indicated category."

Fundamental Considerations

As per table below, between $ 54 and $ 140 have been paid for resources and all categories in the ground while Seabridge is valued at less than $ 10/ounce.

Seabridge had no debt and $ 19 million in cash as of September 30, 2008.

Technical Considerations

THE TIMELESS PRECIOUS METAL FUND is a shareholder in the company and will benefit from any increase in the company's share price.

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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.

Disclaimer: The author's objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information nor the opinions expressed should be construed as a solicitation to buy or sell this stock. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock.

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Peter Zihlmann

Author: Peter Zihlmann

Peter Zihlmann
P. ZIHLMANN INVESTMENT MANAGEMENT AG
www.pzim.ch
invest@pzim.ch

Peter Zihlmann

Chairman of the Board, domiciled in Zurich, Switzerland

Majority shareholder and CEO of P. Zihlmann Investment Management Ltd (the Investment Manager), with over thirty-years experience as an asset manager with different prime banks, and since 1994 CEO of P. Zihlmann Investment Management Ltd.

Your independent Swiss asset manager

THE TIMELESS PRECIOUS METAL FUND
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