Archive for August, 2009

Serengeti Intersects 0.78% Copper Equivalent over 150 meters in South Zone at Kwanika

Serengeti Resources is pleased to announce the results from the initial five holes drilled in the course of this summer’s exploration program at the Company’s Kwanika property in BC.

The results include a near surface intercept grading 0.51% copper, 0.14 g/t gold, 2.7 g/t silver and 0.024% molybdenum (0.78% copper equivalent) over 150.3 meters in hole K-126. This is the best hole drilled to date on the South Zone which is located approximately two kilometers south of the Central copper-gold Zone at Kwanika, that was the subject of a NI 43-101 mineral resource estimate in March 2009.

Drill Holes K-09-124 to K-09-128 Significant Analytical Results

Hole

From
(m)

To
(m)

Interval
(m)

Copper
%

Gold
g/t

Silver
g/t

Moly
%

Copper
Equiv. %

Gold
Equiv. g/t

Orientation
(dip/az)

K-124

126.6

228.0

101.4

0.05

0.03

0.2

0.033

0.30

0.51

Vertical

Incl. 189.9

196.0

6.2

0.05

0.32

0.0

0.372

2.79

4.78

259.5

502.0

242.5

0.41

0.05

2.1

0.018

0.58

1.00

Incl. 290.3

502.0

211.7

0.44

0.05

2.3

0.019

0.63

1.07

Incl. 423.5

463.0

39.6

0.65

0.07

3.1

0.028

0.92

1.57

K-125

71.8

122.2

50.4

0.23

0.05

1.3

0.005

0.31

0.53

-80º / 90º

Incl. 103.3

122.2

18.9

0.39

0.08

2.6

0.010

0.53

0.91

165.3

186.8

21.5

0.21

0.14

2.0

0.003

0.33

0.57

306.3

363.5

57.2

0.13

0.21

1.7

0.002

0.28

0.49

K-126

77.0

227.3

150.3

0.51

0.14

2.7

0.024

0.78

1.35

-70º / 90º

Incl. 86.2

101.3

15.1

0.78

0.25

1.9

0.025

1.12

1.92

And 121.4

146.1

24.7

0.58

0.25

2.7

0.044

1.06

1.81

And 189.8

197.2

7.5

1.42

0.12

9.0

0.009

1.65

2.82

K-127

64.7

121.3

56.6

0.33

0.09

2.2

0.030

0.61

1.07

-65º / 90º

Incl. 98.9

121.3

22.4

0.45

0.13

3.2

0.061

0.98

1.68

158.7

173.1

14.4

0.19

0.06

1.6

0.002

0.26

0.44

272.7

283.0

10.4

0.72

0.00

3.4

0.021

0.90

1.54

K-128

No significant values

Vertical

*Copper and Gold Equivalent calculations use 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 both assume 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). Gold (Au) EQ = Au g/t + (Cu % x 38.60/22.5) + (Mo% x 264.72/22.5) + (Ag g/t x 12.50/700).

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

“These new intercepts greatly increase the potential of the South Zone at Kwanika” stated Serengeti’s President & CEO, David Moore. “This drilling indicates that a near surface copper-molybdenum-gold-silver upper zone appears to increase in grade towards a west-bounding fault and is underlain, at least locally, by a significant lower copper-molybdenum-silver zone that remains open to depth. Follow-up drilling is planned in the current program to further test the significance of these zones” amplified Moore.

All of the holes reported on here were drilled testing extensions of the South Zone where prior drilling by Serengeti and by previous explorers has intersected mineralization along 1,800 meters of strike length. The average composite intercept of the fourteen holes drilled previously in the South Zone by Serengeti is 0.36% copper, 0.13 g/t gold, and 0.013% molybdenum over 82 meters. Four of the holes reported here were drilled along 375 meters of strike length on the west side of the South Zone; three of these intersected significant mineralization, with the fourth hole intersecting weaker mineralization. A fifth hole, K-128 was drilled off the north end of the zone and was not mineralized.

K-126: Intersected a 150.3 meter near surface interval grading 0.51% copper, 0.14 g/t gold, 2.7 g/t silver, 0.024% molybdenum (0.78% copper equivalent). This hole was drilled 200 meters west of prior hole K116 which intersected 0.39% copper, 0.10 g/t gold, 2.7 g/t silver, 0.013% molybdenum over 113.7 meters indicating continuity to the mineralized zone.

K-124: Collared 125 meters north of K-126 intersected what is interpreted to be a lower mineralized zone grading 0.44% copper, 0.05 g/t gold, 2.3 g/t silver, 0.019% molybdenum (0.63% copper equivalent) over 211.7 meter. This lower zone remains open at the bottom of the hole at 502 meters depth and is interpreted to be truncated to the west by a steep west-dipping fault. K-124 was subsequently deepened to a final depth of 642 meters and additional mineralization was observed in the hole to a depth of approximately 620 meters. Assays for this portion of the hole will be reported when available. An upper mineralized zone on this same section was intersected in previously reported hole K-110 and grades 0.27% copper, 0.26 g/t gold, 1.7 g/t silver and 0.007% molybdenum over 239.8 meters.

K-127, K-125: K-127 collared 125 meters north of K-124, intersected a 56.6 meter near surface interval grading 0.33% copper, 0.09 g/t gold, 2.2 g/t silver and 0.030% molybdenum (0.61% copper equivalent) including a 22.4 meter interval grading 0.45% copper, 0.13 g/t gold, 3.2 g/t silver and 0.061% molybdenum (0.98% copper equivalent) and indicates that the better grade zone remains open to the north. K-125 collared 110 m to the south of K-126, intersected several intervals of weaker mineralization and indicates that at least locally, the better grades encountered in K-126 diminish towards the south.

Elsewhere, drilling continues, testing regional targets at the south end of the Kwanika claim block after a break due to elevated forest fire risk. From here the drill will be moved to the Osilinka property, located 35 kilometers north of Kwanika. The planned drill program at Serengeti’s Croy Bloom project, funded by Newcrest Mining, has been deferred for this year due to First Nations’ access issues and the joint venture partner, Newcrest, has been granted an extension to allow time to resolve these issues.

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GGL Diamond Approves Name Change to GGL Resources Corp.

GGL Diamond Corp. (GGL) is pleased to announce the appointment of Mr. Wayne Spilsbury to the board of directors. Mr. Spilsbury received his B.Sc. (Honors Geology) in 1973 from the University of British Columbia and his M. Sc. (Honors Geology) in 1982 from Queens University in Ontario. He brings over 35 years experience in mineral exploration and management, including 28 years with Teck Cominco Limited and was their former General Manager, Exploration – Asia Pacific. Wayne has worked throughout Western Canada, the United States, Asia and Australia; he is a Member of the Association of Professional Engineers and Geoscientists of British Columbia and a Fellow of Australasian Institute of Mining and Metallurgy.

Returning directors are Graham Eacott, Nick DeMare, Raymond A. Hrkac and William Meyer. William Boden has stepped down from the board of directors to enable him to concentrate on other companies of which he is a founder. The Company thanks him for his most valuable contributions and we wish him well.

Based on the recommendation of the Board’s Compensation Committee, the directors approved the granting of 4,475,000 options at an exercise price of $0.10 per share exercisable until August 19, 2014. The options were granted to directors, officers, consultants and employees of the Company.

Shareholders voted in favor of the name change to GGL Resources Corp., the appointment of D+H Group LLP as auditors of the Company for the ensuing year, and approved the annual ratification of the Company’s 10% rolling stock option plan.

Private Placement

GGL has had an initial closing of its non-brokered private placement originally announced on July 17, 2009. A combination of flow-through units at a price of $0.06, (changed from $0.08), per unit and non-flow-through units at a price of $0.06 per unit will be sold. Each flow-through unit will consist of one flow-through common share and one half of one non-transferable non flow-through warrant. Each whole warrant will entitle the holder to purchase one non flow-through common share for one year from the closing date at $0.10 per share.

In the initial closing 1,776,000 non flow-through units at $0.06 per unit were placed for gross proceeds of $106,560. Each non flow-through unit consists of one non flow-through common share and one half of one non-transferable common share purchase warrant. Each whole warrant will entitle the holder to purchase one non flow-through common share until August 20, 2012 at $0.10 per share in the first year, $0.20 per share in the second year and $0.30 per share in the third year. The securities have a hold period until December 21, 2009.

If GGL’s common shares trade on the TSX Venture Exchange at a closing price greater than $0.50 per share for twenty consecutive trading days at any time after four months and one day from the closing date, GGL may accelerate the expiry of the warrants by giving notice to the holders thereof, and in such case the warrants will expire on the 30th day after the date on which such notice is given. GGL may pay a finder’s fee to eligible finders of purchasers of units. Such fees will be paid in non flow-through common shares.

The proceeds from the sale of the units will be used for exploration work on the PGB gold areas and the McConnell property, and for general corporate purposes. The proceeds from the sale of the flow-through shares will be used to incur Canadian Exploration Expense (“CEE”), as defined in the Income Tax Act (Canada). GGL will renounce such CEE to the subscribers effective for the 2009 tax year. Future closings of the private placement are subject to acceptance for filing by the TSX Venture Exchange. The private placement is open until September 9, 2009.

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GGL Resources – Extension and Change to Non-Brokered Private Placement to raise up to $1,400,000

GGL intends to extend by thirty days the financing to raise up to $1,400,000 by way of a non-brokered private placement. To date 1,776,000 non-flow-through units have been sold. A combination of flow-through units at a price of $0.06, (changed from $0.08), per unit and non-flowthrough units at a price of $0.06 per unit will be sold. Each flow-through unit will consist of one flow-through common share and one half of one non-transferable non flow-through warrant. Each whole warrant will entitle the holder to purchase one non flow-through common share for one year from the closing date at $0.10 per share.

Each non flow-through unit will consist of one non flow-through common share and one half of one nontransferable common share purchase warrant. Each whole warrant will entitle the holder to purchase one non flow-through common share for three years from the closing date at $0.10 per share in the first year, $0.20 per share in the second year and $0.30 per share in the third year.

If GGL’s common shares trade on the TSX Venture Exchange at a closing price greater than $0.50 per share for twenty consecutive trading days at any time after four months and one day from the closing date, GGL may accelerate the expiry of the warrants by giving notice to the holders thereof, and in such case the warrants will expire on the 30th day after the date on which such notice is given. GGL may pay a finder’s fee to eligible finders of purchasers of units. Such fees will be paid in non flow-through common shares.

The proceeds from the sale of the units will be used for trenching, sampling and drilling of the PGB gold areas, exploration on the McConnell property, and for general corporate purposes. The proceeds from the sale of the flow-through shares will be used to incur Canadian Exploration Expense (“CEE”), as defined in the Income Tax Act (Canada). GGL will renounce such CEE to the subscribers effective for the 2009 tax year. The private placement is subject to acceptance for filing by the TSX Venture Exchange.

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