Seabridge Courageous Lake spin-out: project economics and mine design notes
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
Seabridge Gold will spin out its 100%-owned Courageous Lake project in Canada’s Northwest Territories into a new listed vehicle, Valor Gold, distributing shares to existing Seabridge investors. Courageous Lake hosts 11 million oz measured and indicated (145.2 Mt at 2.36 g/t) plus 3.3 million oz inferred (40.6 Mt at 2.52 g/t), including 2.8 million oz of open-pittable proven and probable reserves at 2.6 g/t, with a February 2024 PFS outlining 201,000 oz/year over 12.6 years. At US$1,850/oz gold the PFS gives an after-tax NPV5 of US$523 million and 20.6% IRR, with further upside from a PEA-stage pit expansion and the high-grade Walsh Lake satellite (4.13 Mt at 4.18 g/t) on a largely unexplored ~500 km² land package.
Technical Brief
- PFS sensitivity shows NPV5 rising from US$523m at US$1,850/oz to US$1.1bn at US$2,500/oz.
- IRR improves from 20.6% to 38.2% across the same gold price range, with payback shortening from 2.8 to 1.6 years.
- PFS mine plan exploits less than 30% of the measured and indicated resource, leaving substantial in-situ inventory unmined.
- Conceptual PEA pit expansion incorporates inferred resources that require additional drilling and engineering to reach PFS confidence.
- Walsh Lake satellite deposit adds 4.13 Mt at 4.18 g/t inferred (c.555,000 oz), potentially supporting satellite pit scheduling.
- District-scale land package covers ~500 km², of which under 15% has been systematically explored to date.
- Valor Gold listing is planned on at least one major stock exchange, with shares distributed directly to existing Seabridge holders.
Our Take
With only about 30% of the 11 Moz measured and indicated resource at Courageous Lake feeding into the current PFS mine plan, the spin-out to Valor Gold effectively packages a large pipeline of optionality ounces that can be phased in or re-scoped as logistics and NWT cost assumptions evolve.
The relatively strong base-case economics (20.6% IRR, 2.8-year payback) in a remote Northwest Territories setting suggest that any future improvements in access, power, or camp-sharing with other NWT projects could materially lift the Courageous Lake NPV beyond the current C$523 million benchmark.
In our database of 331 Mining stories, most Canada gold project items are in more established provinces than the Northwest Territories, so Seabridge’s decision to separate Courageous Lake from its British Columbia KSM asset likely reflects the distinct permitting, infrastructure, and investor risk profiles between the two regions.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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