Serengeti Reports Final Kwanika 2010 Drilling Results, Identifies Additional Potential on Property
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/09/10 -- Serengeti Resources Inc. (TSX VENTURE: SIR)(FRANKFURT: 34S) today announced results from the final 13 holes of a major drill campaign completed at the Kwanika copper-gold project in the Quesnel Trough of north-central British Columbia.
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Inter- Copper
From To val Copper Gold Silver Mo Equiv. Orientation
Hole (m) (m) (m) % g/t g/t % % (dip/azimuth)
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68.0 71.0 3.0 0.24 0.17 2.3 - 0.36
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K-153 117.0 172.0 55.0 0.11 0.01 1.0 0.004 0.15 Vertical
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204.0 218.5 14.5 0.15 0.05 1.3 0.009 0.25
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208.0 212.0 4.0 0.10 0.26 1.9 - 0.27
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K-154 249.8 264.0 14.2 0.07 0.33 1.5 0.002 0.29 -65 degrees/
------------------------------------------------------ 270 degrees
279.0 305.0 26.0 0.09 0.18 2.3 0.002 0.23
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K-157 113.8 277.0 163.2 0.15 0.04 1.1 0.012 0.27 -47 degrees/
77 degrees
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K-159 124.0 138.0 14.0 0.09 0.04 1.0 0.006 0.17 Vertical
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47.0 97.9 50.9 0.36 0.10 2.2 0.031 0.65
K-160 ------------------------------------------------------ -62 degrees/
Incl. 76.7 20.9 0.41 0.10 2.4 0.042 0.78 270 degrees
55.8
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K-161 65.5 118.0 52.5 0.15 0.02 1.0 0.016 0.28 Vertical
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171.0 222.9 51.9 0.28 0.06 2.3 0.003 0.36
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K-162 Incl. 215.0 20.0 0.39 0.09 3.2 0.003 0.50 -70 degrees/
195.0 270 degrees
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222.9 287.0 64.1 0.09 0.01 0.8 0.003 0.12
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K-164 255.0 327.6 72.6 0.16 0.05 1.2 0.003 0.22 -45 degrees/
100 degrees
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60.0 72.85 12.8 0.11 0.03 0.9 0.002 0.15
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K-165 85.0 89.0 4.0 0.15 0.04 1.8 0.006 0.23 -50 degrees/
------------------------------------------------------ 170 degrees
136.0 142.0 6.0 0.20 0.02 0.5 - 0.22
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117.0 125.0 8.0 0.36 0.27 0.9 - 0.53
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K-166 151.0 157.0 6.0 0.11 0.15 0.3 0.001 0.21 -70 degrees/
------------------------------------------------------ 90 degrees
336.4 349.0 12.6 0.09 0.09 0.6 0.001 0.16
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203.0 213.0 10.0 0.09 0.03 0.6 0.002 0.13
K-167 ------------------------------------------------------ -50 degrees/
241.0 247.0 6.0 0.15 0.02 1.1 0.003 0.19 270 degrees
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K163,168 NSV
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Copper-equivalent calculation uses metal prices of US$1.75/lb for copper,
US$12/lb for molybdenum, US$700/oz for gold and US$12.50/oz for silver and
assumes metallurgical recoveries and net smelter returns of 100%. Copper
(Cu) EQ = Cu% + (Mo% x 12 / 1.75) + (Au g/t x 12.86 / 22.06) + (Ag g/t x
0.23 / 22.06).
Drill Sections and a 3D model can be viewed at www.corebox.net or by following a link on the company's website at www.serengetiresources.com. To view the map accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/sir99.pdf.
The 2010 Kwanika drill program was completed in early August and comprised 7,600 meters of drilling in 28 holes, utilizing two drills. The program was carried out more quickly than anticipated and resulted in a significant cost savings of approximately $800,000. Thirteen holes are reported in the current release and 15 holes were previously released (see NR 2010-09 dated July 22, 2010 and NR 2010-12 dated August 18, 2010).
'Results from the widely spaced drilling conducted this year will be used to update the South Zone resource model,' said President and CEO, David W. Moore. 'Given the very conservative metal prices we have used for prior resource estimates, we will also recalculate the Central Zone resource given the sustained current higher price environment for copper and gold,' stated Moore. 'We are also pleased to have recognized a new target area south of the current drilling which maintains the potential for additional discoveries on the property.'
The Company's previously reported NI 43-101 compliant resources, combining the South and Central Zones, total 1.1 billion pounds of copper and 1.6 million ounces of gold in the Indicated Resource category, plus 1.0 billion pounds of copper and 0.5 million ounces of gold in the Inferred Resource category, all estimated at a 0.25% copper equivalent cut-off grade (see following table). Upon receipt of all the results from this summer's drill program at Kwanika, the Company will update the Resource Estimate.
Kwanika Mineral Resources
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CuEq % Tonnage Cu Au Ag Mo CuEq
Zone Category Cut-off Mt % g/t g/t % %
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0.40 75.1 0.41 0.42 - - 0.69
Indicated --------------------------------------------------------
Central 0.25 182.6 0.29 0.28 - - 0.47
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Inferred 0.25 28.5 0.19 0.20 - - 0.32
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0.40 62.2 0.41 0.09 2.25 0.014 0.59
South Inferred --------------------------------------------------------
0.25 129.1 0.30 0.09 1.76 0.010 0.45
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Note 1: Copper equivalent calculation uses the following USD metal prices;
copper, $2.00/lb; gold, $900/oz; molybdenum, $15/lb; silver,
$12/oz; and makes no provision for metallurgical recoveries and net
smelter returns. CuEq = Cu % + (Mo% x 15/2.00) + (Au g/t x (900 /
31.1 / 2.00) / 22.06) + (Ag g/t x (12 / 31.1 / 2.00) / 22.06). The
base case cut-off used for the Mineral Resources was 0.25% CuEq
which is comparable to other porphyry copper open-pit deposits in
BC.
Elsewhere on the Kwanika property, recent geological mapping has outlined outcrops of similar cover rocks, two to five kilometers south of the South Zone, as those observed overlying the high grade enriched portions of the Central Zone. This evidence along with anomalous copper values in outcrop and IP geophysical anomalies from prior surveys, indicates a potential new target area for future drilling.
About Serengeti
Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid track record of exploration success. The Company is currently advancing its Kwanika copper-gold project, and exploring its extensive portfolio of properties in the highly prospective Quesnel Trough of British Columbia and has initiated exploration for gold-silver deposition in Mexico. Additional information on Serengeti's projects can be found on the Company's website at www.serengetiresources.com. Serengeti is well funded to advance its projects with a current working capital position of approximately $6.1 million, which includes $2.9 million receivable from the B.C. government's METC program. Serengeti has 46.2 million shares issued and outstanding and 51.5 million shares on a fully diluted basis.
Quality Assurance/Quality Control
Sample analysis for the current program was completed at Acme Analytical Laboratories Ltd in Vancouver, BC. A comprehensive quality assurance/quality control program including duplicate samples, blanks and standards form part of the sampling protocol in addition to the laboratory's own quality assurance program. The field program was supervised by Serengeti Resources Inc. staff and the technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the Company's qualified person, David W. Moore, P.Geo., President and CEO of Serengeti Resources Inc.
Cautionary Statement
This document contains 'forward-looking statements' within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company's documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Serengeti Resources Inc.
Martti Kangas
Investor Relations
647-521-9261
mkangas@proconsulcapital.com
Serengeti Resources Inc.
604-605-1300
www.serengetiresources.com