Serengeti to Drill at Kwanika


Serengeti Resources Inc. is planning to complete a 10,000-metre drill program on its Kwanika copper-gold project in the Quesnel trough of north-central B.C.

“This planned $2.7-million program provides the opportunity to move Kwanika over the development threshold both in terms of tonnage and grade,” said David Moore, president and chief executive officer of Serengeti. “The south zone offers the potential for discovery of near-surface, open-pitable mineralization,” elaborated Mr. Moore. The company expects to have the two-drill program started in early June, 2010.

The drill program will be composed entirely of step-out drilling to expand the existing resource at the south zone, where 70 per cent of the favourable target area remains to be tested. 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, and one billion pounds of copper and 500,000 ounces of gold in the inferred resource category — all estimated at a 0.25-per-cent copper-equivalent cut-off grade (see attached table).

 

                     KWANIKA MINERAL RESOURCES

                   Cu eq %  Tonnage    Cu    Au    Ag     Mo  Cu eq
Zone    Category   cut-off       Mt     %   g/t   g/t      %      %

Central               0.40     75.1  0.41  0.42    --     --   0.69
        Indicated     0.25    182.6  0.29  0.28    --     --   0.47
        Inferred      0.25     28.5  0.19  0.20    --     --   0.32
South                 0.40     62.2  0.41  0.09  2.25  0.014   0.59
        Inferred      0.25    129.1  0.30  0.09  1.76  0.010   0.45

Note 1: Copper equivalent calculation uses the following U.S. 
prices: copper, $2 per pound; gold, $900 per ounce; molybdenum, 
$15 per pound; and silver, $12 per ounce; and makes no provision for 
metallurgical recoveries and net smelter returns. Copper equivalent
equals copper percentage plus (molybdenum percentage times 15
divided by two). Gold grams per tonne times (900 divided by 31.1 
divided by two divided by 22.06) plus (silver grams per tonne times 
12 divided by 31.1 divided by two divided by 22.06). The base case
cut-off used for the mineral resources was 0.25 per cent copper
equivalent, which is comparable to other porphyry copper open pit
deposits in B.C.

Note 2: Canadian Institute of Mining, Metallurgy and Petroleum
definitions were followed for mineral resource estimation
and classification. By prescribed definition, mineral resources
do not have demonstrated economic viability and indicated
resources have a higher degree of confidence than do inferred
resources. The mineral resources fall within a pit shell defined
by long-term U.S.-dollar metal prices of copper, $3 per pound; gold,
$1,000 per ounce; molybdenum, $15 per pound; and silver, $16 per ounce.

Note 3: The silver content of the central zone is not modelled; and the 
molybdenum content of central zone is not significant.

 

In addition to the budget for the Kwanika project, $1-million is allocated for target development work on other regional exploration targets in the company’s extensive portfolio, as well as financing for a new project development outside of B.C. Upon completion of this summer’s drill program at Kwanika, the company expects to update the resource estimate, followed by a preliminary economic assessment.

The company has been advised by Newcrest Mining B.C. Ltd. that it has elected to withdraw from the Croy Bloom/Davie Creek option agreement. The work completed at the property has resulted in the tenure being extended to 2019.

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, Mr. Moore, PGeo, president and chief executive officer of Serengeti Resources Inc.

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