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Serengeti Resources Inc. (SIR: TSX-V; 34S: FSE) is
pleased to provide an update of its 2011 exploration activities at its
British Columbia projects. The 2011 program has identified several
porphyry Cu-Au and other primary Au-Ag targets for follow up drilling
in 2012. At the Kwanika and Valleau
projects, robust Cu-Au soil and IP chargeability anomalies were identified,
resulting in excellent porphyry drill targets. At the Stikine project an
outcropping body of Cu mineralized syenite was
discovered and at Croy-Bloom an excellent
gold-copper target identified. In addition, the Tchentlo-Choo
and several Quest JV properties continue to be advanced by Serengeti's major
partners, Freeport-McMoRan of Canada Limited and Xstrata Copper Canada
respectively.
Major Projects
Kwanika - At the Kwanika
project, Serengeti completed a $600,000 work program in order to test the
entire 8,960 Ha claim block for other porphyry Cu-Au systems. The program included the following activities:
- 5 reconnaissance drill holes
(1,320 m) to test exploration targets outside the known resource areas.
- 4,500 sample, property-wide
Ah soil geochemistry survey and 20 line km follow up IP survey. Ah soil
sampling has been shown to be an effective method in covered
environments clearly identifying the Kwanika
central zone deposit under 15 to 30 m of glacial sediments.
- Several high priority
geochemical and geophysical targets have been identified for IP and
drill testing in 2012.
In
addition to the exploration completed at the project, Serengeti initiated an
independent Preliminary Economic Assessment (PEA) study on the higher grade
portion of the copper-gold resource at Kwanika. The
study will investigate a 15,000 tonne per day,
combined open pit and underground operation and will lead to a NI 43-101
compliant PEA report. Serengeti commissioned Moose Mountain Technical Services
(MMTS) to complete the Scoping Study and PEA which is currently scheduled for
completion in Q1.
Tchentlo and Choo
Projects - Currently under option to Freeport-McMoRan of Canada Limited
(Freeport), a wholly owned indirect subsidiary of Freeport McMoRan Copper & Gold.
- The option grants Freeport
the right to earn an initial 51% of the combined properties by funding
$5 million in exploration and making certain cash payments. Serengeti is
the project operator during the initial earn-in phase. The combined
projects cover an area of 16,350 Ha and are located in the highly
prospective Quesnel Trough, due west of Mt
Milligan.
- Serengeti and Freeport
completed an extensive exploration program consisting of 60 line km of
IP surveying along with mapping, prospecting, and collection of 1400 Ah
soil samples in a $570,000 program funded by Freeport.
- Serengeti and Freeport plan
to establish the highest priority targets in the first quarter for
further exploration in 2012.
Projects optioned to Xstrata Copper Canada - In September 2011,
Serengeti and Fjordland Exploration Inc. entered
into an option agreement with Xstrata Copper Canada (Xstrata), a business
unit of Xstrata Canada Corporation, to explore a number of Serengeti's Quest
joint venture properties, currently held by Serengeti (63.7%) and Fjordland (36.3%).
- The agreement provides
Xstrata the right to earn an initial aggregate 51-per-cent interest in
the properties by financing $5-million in exploration expenditures, and
making certain cash payments to the joint venture.
- The agreement includes the
Rob, Ping, Reid Lake, ST, PG and MP properties, which cover
approximately 27,700 hectares, located in the Quesnel
trough porphyry belt between Mt. Milligan, Prince George area, B.C.
- Several of these projects
already have porphyry copper-gold drill targets identified as a result
of prior exploration by Serengeti and Fjordland.
Drill target definition is ongoing, including completion of IP surveys
on a number of the properties. Serengeti plans to meet with Xstrata, the
project operator, in the coming weeks to discuss 2012 exploration plans.
Other Projects
Stikine - Discovered a body of previously unknown potasically-altered
and copper-mineralized syenites. Mineralization
occurs as fracture controlled and locally disseminated chalcopyrite and
malachite, observed over a variably exposed 200 x 250 m area. Several
composite rock samples assayed 1000-4000 ppm Cu with minor Au and Ag values.
The project is located approximately 25 km northwest of Telegraph Creek and
is considered highly prospective to host an Alkalic
porphyry system. Serengeti plans to complete additional prospecting and soil
sampling in order to define drill targets.
Valleau - Outlined a strong 500 x 250
m, coincident Cu and Au soil anomaly. This anomaly is open to the east and is
located immediately east of a previously identified IP chargeability anomaly.
Results from historical trenching immediately to the west of this soil
anomaly, reportedly include 300 ppb Au over 20 m and 1,070 ppb Au over 10 m
in two separate trenches. The project is located approximately 15 km east of
the Kwanika deposit in north-central BC. An IP survey
and additional soil sampling is planned in order to define a drill target for
testing in 2012.
Croy Bloom - An IP survey identified
a 200 m wide IP chargeability anomaly associated with several narrow,
exceptionally high-grade copper and gold massive sulfide veins at the Croy showing. Subsequent to the survey, Serengeti
completed an agreement to purchase a group of adjacent mineral claims that
cover the Soup and Saddle Gully showings, located 1.5 km to the west. Past
drilling of these showings has reportedly intersected 22 m grading 1.1 g/t
Au, 0.39% Cu and 5 m grading 12 g/t Au. The source of significant copper and
gold mineralization at the Croy, Soup and Saddle
Gully showings is thought to be a buried porphyry copper-gold system. These
showings outline a target area approximately 1.6 km by 0.8 km in extent.
Follow up Program Details
Serengeti has already received permits for 2012 drilling programs at Choo, Tchentlo and is awaiting
a multi-year drilling permit for Kwanika.
Additional planning and permitting is underway to enable the completion of
the programs in summer 2012.
Serengeti also reports the grant of 1,300,000 incentive stock options
pursuant to the Company's Stock Option Plan, to directors, officers,
consultants and employees of the Company. These options will be exercisable
at a price of $0.20 for five years from the date of grant and will vest over
a 12 month period.
About Serengeti Resources Inc.
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
continued exploration for gold-silver deposits 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 $4.2 million. Serengeti has 51.1 million
shares issued and outstanding or 59.4 million shares on a fully diluted
basis.
Quality Assurance/Quality Control
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.
ON BEHALF OF THE BOARD
David W. Moore, P. Geo., President, CEO and Director
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