What happened

Shares of Seabridge Gold Inc. (SA -2.97%) rallied more than 13% by 11 a.m. EDT on Friday after the gold exploration company announced two new discoveries along with its second-quarter results.

So what

While Seabridge Gold reported another net loss in the second quarter, investors should expect that from an exploration-stage gold company. Instead, what matters more is the progress Seabridge Gold made on its exploration projects as well as in lining up financing to continue its work. The company announced successes in both areas during the second quarter, which increases the optimism about its future.

Gold nuggets on a flat surface.

Image source: Getty Images.

First, the company said that it discovered two new gold zones at its Courageous Lake project in Canada's Northwest Territories. The company noted that these finds, Olsen and Marsh Pond, had widths and ore grades similar to the Walsh Lake deposit it discovered in 2012. Because of that, Seabridge stated in its report to shareholders that it "sees the potential for making [the] Courageous Lake Project more economic at current gold prices." As a result, it plans to take the next step and develop a conceptual design for the region that could exploit these deposits.

And the company announced that it strengthened its balance sheet by completing a stock offering, which raised 19.7 million Canadian dollars ($15 million). That will give it more capital to continue exploring its resource base, including initiating an exploration program at the Snowstorm gold project in Nevada.

Now what

As an early-stage gold exploration company, Seabridge requires investors to have a very long-term mindset. While the company believes it has uncovered a meaningful amount of gold, there are no guarantees it will be able to turn these discoveries into profitable gold mines. Because of that, investors who are seeking to add some gold exposure to their portfolio might want to consider one of these top gold mining stocks instead.