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Wednesday, June 06, 2007
Serengeti Completes Initial Drill Program at Kwanika; Acquires Five New Properties in the Quesnel Trough
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Vancouver, B.C., June 6, 2007 . Serengeti Resources Inc. (TSX-V: SIR) is pleased to report the completion of the initial 16-hole spring 2007 drilling program and the initiation of an airborne and ground geophysical program on its 100% owned Kwanika property in central BC. The Company also reports initiation of an airborne geophysical survey on the Osilinka property and the acquisition of five new properties totaling 447 km2; all located in the prolific Quesnel Trough, between the operating Kemess and Mt Polley copper-gold mines.
The spring drilling program on the Kwanika copper-gold property initiated in early March has now been successfully completed. A total of 5,835 meters was drilled in 16 holes testing extensions of the copper-gold mineralized system first discovered on the property in late 2006. Previously released results from Kwanika include drill hole K-07-15 which assayed 0.61% copper, 0.72 g/t gold and 2.9 g/t silver over 328.3 meters. The results for the remaining 11 holes, K-07-16 to K-07-26, are pending and will be released as available. A location map showing holes drilled to date at Kwanika is available on the company's website at www.serengetiresources.com. Current activity on the property includes line cutting in preparation for induced polarization (IP) and magnetic surveys to test for extensions of the large open-ended IP anomaly associated with the copper-gold system. Planning has commenced for a large follow-up drilling program at Kwanika scheduled to start by the end of June.
Serengeti has also contracted Fugro Airborne Surveys Corp. to conduct a 1,200 line-kilometer airborne magnetic (MAG) and electromagnetic (EM) survey of the southern half of the Kwanika block as well as on the Osilinka property which is 100% owned by Serengeti and was acquired following the discovery at Kwanika in December 2006. Airborne MAG and EM surveys have proven successful elsewhere in the Quesnel Trough in the delineation of alkaline copper-gold mineralized systems similar to Kwanika. The survey is scheduled to start early June and is being conducted as part of a larger scale survey contracted by Solomon Resources Limited, Lysander Minerals Corporation and Serengeti Resources Inc.
In addition, Serengeti has continued to strengthen its land position in the northern end of the Quesnel Trough, with the acquisition of five new properties totaling 447 km2 over the last several months. All properties are 100% owned by Serengeti, except for the Tezz property, which upon Fjordland Exploration Inc. expending the initial $50,000 will become a 50/50 joint venture. Four of the five properties cover major regional northwest-trending aeromagnetic anomalies that elsewhere in the belt are associated with copper-gold mineralization. These properties are as follows:
- FLEET: A 153 km2 claim block covering a large aeromagnetic anomaly, several large areas of strongly anomalous copper-gold soil geochemistry and two copper showings discovered by prior exploration in the 1970's and 1980's. The property is located 40 km southeast of the Kemess Mine and current access is by helicopter, although old exploration access trails do exist in the area.
- KEM: An 80 km2 claim block lying 12 km southeast of the Kemess South Mine and adjoining Northgate Minerals Corporation's property to the south and east. The property covers an aeromagnetic anomaly that lies along trend of the copper-gold showings on the Fleet. There is significant overburden cover and the property is thought to be underlain by the favorable monzodiorite plutons intruding limestone, a geological setting with the potential to host high grade copper-gold skarn deposits.
- COPPER: Three claim blocks totaling 128 km2, located 65 km south of the Mt. Milligan development project and 30 km east of the town of Fort St. James. The property includes an overburden-covered aeromagnetic anomaly lying along the western margin of the Quesnel Trough; a similar setting to Kwanika. The property has extensive logging road access.
- TEZZ: An 81 km2 claim block covering a portion of a large aeromagnetic anomaly located 40 km. south of Prince George. The area is overburden-covered, however prior government sampling has identified strong copper-gold stream sediment anomalies on the property. The Tezz claims adjoin a large block recently acquired by NovaGold Resources Inc. The property is completely road accessible.
- KWANDYKE: A 5 km2 property covering a geochemical target located on the margin of the Hogem Batholith, 25 km east of Kwanika.
Detailed airborne geophysical surveys will be conducted later this year on four of these new properties. The Tezz and Copper properties will also be covered as part of a recently announced government funded, wide-spaced, multi-parameter airborne geophysical survey.
Further to the Company's news release dated May 16, 2007, announcing the proposed brokered private placement to raise $15,000,000 and a non-brokered private placement to raise an additional $1,000,000, the Company announces that it has agreed to pay a commission to the Underwriters of the brokered financing equal to 6% of the Offering, payable at the discretion of underwriters, in either cash or units, the units having the same terms as the Units issued in the Offering. The Company has also agreed to issue Underwriter Warrants equal to 6% of the Offering. Each Underwriter's Warrant will be exercisable into one common share at a price of $3.50 for a period of one year from the date of issuance. The Company has also agreed to pay a finder's fee equal to 6% of the proceeds raised in the non-brokered financing, payable at the discretion of the finder, in either cash or units, the units having the same terms as the Units issued in the non-brokered portion of the financing.
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 persons, Myron Osatenko, P. Geo., Chief Geologist and David W. Moore, P. Geo., President and CEO of Serengeti Resources Inc. In addition, Peter Walcott and Associates are acting in the capacity of technical consultants for the airborne geophysical surveys described above.
Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid track record of exploration success. The Company is focused on the discovery and development of copper-gold molybdenum deposits in British Columbia, especially in the highly prospective Quesnel Trough where it owns 20 claim blocks totaling in excess of 100,000 hectares. Additional information can be found on Serengeti's website at www.serengetiresources.com
For further information, please contact:
David W. Moore, President and CEO, Serengeti Resources Inc., 604-605-1300
Email: dmoore@SerengetiResources.com
Website: www.serengetiresources.com
Investor Relations: ph 604-685-8184 / Email: info@serengetiresources.com
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release
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