Posts Tagged Serengeti Resources

Serengeti Completes Exploration Access Agreement for Kwanika Project with Takla Lake First Nation

Serengeti Resources Inc. and the Takla Lake First Nation today announced signing of an Exploration Access Agreement for Serengeti’s Kwanika property, located 120 km north of Fort St. James in north central British Columbia. The Agreement covers all exploration and related activities on the Kwanika property until such time as a decision is made to enter into the mining permit application process.

Since Serengeti began exploration on the Kwanika property, it has consistently sought input from the nearby Takla Lake First Nation and hired many of its members to work at the site. The Agreement ensures that Serengeti will continue to provide Takla with opportunities to provide meaningful input into such aspects as environmental monitoring, protection of habitat for cultural important species, and protection of sites of important cultural or spiritual significance. It also provides training, employment, and business opportunities for members of the Takla Lake First Nation. In return, Serengeti has greater confidence in the continued access to the Kwanika property and the support of the local community as the project advances, as well as access to a local labour supply.

“We are very pleased to have reached this point in our relationship with Takla Lake,” said David Moore, President & CEO, Serengeti Resources Inc. “It has been very important to us from the outset of exploration on the property, that local communities support our endeavors.”

Chief Dolly Abraham of the Takla Lake First Nation, stated, “Takla has a policy of requiring all companies operating in our Territory to sit down with us and work out respectful agreements. Serengeti from the very beginning has been very proactive in seeking out a relationship with us, which is very important. That area is important to our Nation and members and we appreciate that Serengeti has been sensitive to our concerns about where they go, what they pay attention to in the environment, and how they do their sampling. It also means a lot to our people to be able to work close to home.”

Approximately 75% of staff on site during the 2010 exploration program are from the Takla community.

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 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 $7.7 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.

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Thompson Creek Enters Into Agreement To Acquire Terrane Metals Corp.

Thompson Creek to Acquire Major Growth Asset

Transaction advances development of the Mt. Milligan project in British Columbia

Thompson Creek Metals Company Inc. (“Thompson Creek”) (TSX:TCM)(NYSE:TC) and Terrane Metals Corp. (“Terrane”) (TSX VENTURE:TRX) jointly announce that they have entered into a definitive agreement pursuant to which Thompson Creek will acquire all of the issued and outstanding equity of Terrane. The transaction will be implemented by way of a court-approved plan of arrangement under British Columbia law (the “Arrangement”). Thompson Creek has also concurrently entered into an agreement with Royal Gold, Inc. (“Royal Gold”) with respect to the purchase and sale of 25% of the life of mine gold production (the “Gold Stream Transaction”) from Terrane’s Mt. Milligan Copper Gold Project (“Mt. Milligan”).

Under the Arrangement, holders of Terrane shares will receive C$0.90 in cash and 0.052 Thompson Creek common shares per Terrane share. The consideration implies an offer value of C$1.41 per Terrane share based on Thompson Creek’s closing price on the Toronto Stock Exchange (“TSX”) of C$9.90 per share on July 14, 2010. The consideration represents a premium of approximately 35% based on the volume weighted average trading prices of Thompson Creek and Terrane on the TSX and TSX Venture, respectively, for the 20 trading days ended July 14, 2010, and a premium of 21% to Terrane’s closing price of C$1.17 per share on the same day. The total value of the consideration offered to the shareholders of Terrane is approximately C$650 million.

Kevin Loughrey, Chairman and Chief Executive Officer of Thompson Creek, stated: “The acquisition of Terrane fits well in our strategic growth plan, providing us with clear production and revenue growth while diversifying our commodity exposure, all in a project with mining and milling processes, and a regulatory environment, with which we have considerable experience. We are utilizing a portion of cash on our balance sheet and our current cash generating capacity from existing operations while capitalizing on financing opportunities available through the Gold Stream Transaction. The upside from our existing asset base has been retained for our shareholders while structuring a transaction that we believe will be highly accretive on a cash flow basis once Mt. Milligan is in production. We believe with our Endako expansion, and now the Mt. Milligan project, we have substantially improved Thompson Creek’s growth profile.”

 Rob Pease, President and Chief Executive Officer of Terrane, stated: “We are pleased to join forces with Thompson Creek. Their financial depth, combined with the Royal Gold transaction, provides a clear path to complete funding of Mt. Milligan. Combined with their proven development and operating capabilities, this transaction has the opportunity to unlock the value of Mt. Milligan for all shareholders. Thompson Creek is committed to responsible development and mining and has an excellent track record of working cooperatively with host governments and communities wherever they operate, including British Columbia.”

 Chuck Jeannes, President and Chief Executive Officer of Goldcorp Inc. (“Goldcorp”), stated: “The Terrane management team has done an outstanding job in advancing Mt. Milligan towards development. The transaction with Thompson Creek provides a meaningful cash return for Terrane shareholders, while providing an opportunity to participate in the future success of Mt. Milligan through a combined, diversified, high growth base metals producer.”

 The transaction has been unanimously approved by the board of directors of Terrane following the report and favourable unanimous recommendation of a special committee of independent directors (the “Special Committee”). In doing so, the board of directors of Terrane determined that the Arrangement is fair to its shareholders and in the best interests of Terrane and authorized the submission of the Arrangement to the shareholders of Terrane for their approval at a special meeting of shareholders.

 Goldcorp has entered into a support arrangement with Thompson Creek under which it has agreed to vote in favour of the transaction. Goldcorp holds approximately 240.0 million preference shares and approximately 27.3 million common shares. Each preference share can, at the election of Goldcorp, be exchanged for one common share of Terrane. On a combined basis, Goldcorp’s shares represent approximately 58% of the outstanding voting equity of Terrane. In addition, certain officers and directors of Terrane holding approximately 1% of the common shares in aggregate have entered into support agreements.

 The board of directors of Terrane was advised by National Bank Financial Inc. (“National Bank Financial”) as financial advisor and Lang Michner LLP as legal advisor. The Special Committee was advised by Scotia Capital Inc. (“Scotia Capital”) as financial advisor and Fraser Milner Casgrain LLP as independent legal advisor. Each of National Bank Financial and Scotia Capital has concluded that as of July 14, 2010, the consideration to be received under the arrangement is fair, from a financial point of view, to the holders of common shares of Terrane. A copy of the National Bank Financial and Scotia Capital fairness opinions and the factors considered by the board of directors and Special Committee in approving the Arrangement, and other relevant background information will be included in the management information circular that will be sent to shareholders of Terrane in connection with the special meeting to consider the Arrangement.

 The transaction has been unanimously approved by the board of directors of Thompson Creek based upon, among other things, an oral fairness opinion from RBC Capital Markets. In doing so, the board of directors of Thompson Creek determined that the Arrangement is fair to its shareholders and in the best interests of Thompson Creek. The board of directors delegated the authority to provide final approval for the transaction to its executive committee.

 Benefits to Thompson Creek Shareholders

 The acquisition of Terrane is expected to provide the following benefits to shareholders of Thompson Creek:

 Mt. Milligan offers diversification beyond Thompson Creek’s current asset base of primary molybdenum deposits with the pro forma production profile providing for strong contributions from each of molybdenum, copper, and gold subsequent to the start-up of Mt. Milligan which is expected in 2013;

 The Gold Stream Transaction should allow shareholders to immediately capture value from gold production while providing funds for mine construction, retaining full leverage to base metal production and maintaining significant gold by-product credits;

 The combined business should have the ability to finance its strong combined project pipeline without equity dilution, which would generate significant production growth by 2013 when the Endako expansion and Mt. Milligan projects are expected to be completed; and

 Going forward, Thompson Creek should have avenues for future exploration and growth with a broader suite of earlier stage projects, including Mt. Emmons, Davidson and Berg that can be prioritized optimally for development and value creation.

 Benefits to Terrane Shareholders

 The transaction should provide the following benefits to shareholders of Terrane:

 Participation in a well-funded, diversified base metals producer, including ongoing exposure to Mt. Milligan, through the share component of the offer;

 Access to Thompson Creek’s proven development and construction expertise, and significantly greater financial resources to build and operate Mt. Milligan ; and delivery of an attractive premium with a meaningful cash component.

 Overview of Mt. Milligan

 Mt. Milligan is a construction-ready growth project. This transaction establishes Thompson Creek as a diversified, high growth base metals producer with a meaningful gold by-product. Terrane has a highly qualified and experienced management team; it is expected that many of these individuals will be retained by Thompson Creek.

 Upon closing, Thompson Creek will assume 100% ownership of Mt. Milligan, located approximately 150 km north-east of Thompson Creek’s existing Endako Mine. Mt. Milligan contains proven reserves of 274.6 million tonnes averaging 0.21% Cu and 0.44 g/t Au and probable reserves of 207.8 million tonnes averaging 0.19% Cu and 0.32 g/t Au, for a total proven and probable reserves of 482.4 million tonnes averaging 0.20% Cu and 0.39 g/t Au, totalling 2.1 billion pounds of contained copper and 6.0 million ounces of contained gold. Mineral reserves were calculated at US$4.10/t Net Smelter Return cut-off. Mt. Milligan has received an Environmental Assessment (EA) Certificate and a Mines Act Permit from the Province of British Columbia and the Environmental Assessment (EA) approval from the Government of Canada.

 Mt. Milligan will be a conventional truck-shovel open pit mine with a 60,000 tpd copper flotation process plant. The average annual production over the 22 year estimated mine life is expected to be 81 million pounds of copper and 194,000 ounces of gold (see Terrane press release October 13, 2009). Mt. Milligan is expected to provide approximately 400 direct permanent jobs and significant long-term economic benefits for the region.

 Thompson Creek intends to fund the remaining Mt. Milligan construction costs over approximately the next two and a half years from a combination of (i) pro forma combined cash balances, as adjusted for the April 16, 2010 Terrane equity offering, of approximately $178 million (all amounts in U.S. dollars, unless otherwise noted), (ii) the $311.5 million of proceeds from the Gold Stream Transaction, (iii) up to $250 million of debt finance in the form of equipment financing and a potential bank credit facility, (iv) internal cash generation, and (v) potential warrant proceeds including Thompson Creek’s existing warrants due in 2011 (potential proceeds of C$220 million) as well as the Terrane warrants due in 2011 and 2012 that will remain outstanding (potential net proceeds of approximately C$27 million).

 In June 2010, Terrane initiated the first phase of construction with a road contract and entered into a letter of intent with AMEC Americas Limited and Fluor Canada Ltd. to provide engineering, procurement and construction management services. Purchase orders have been made for long lead time items for the process plant and power supply equipment. Current development timelines are targeting the commissioning of the mine and mill complex in 2013.

 Other Terrane Assets

 In addition to Mt. Milligan, Terrane has a number of other earlier stage mineral projects, the most substantial of which is the Berg copper-molybdenum-silver deposit, located in British Columbia approximately 150 km southwest of Endako, and a similar distance from Thompson Creek’s Davidson project. Berg is a porphyry deposit with a current defined measured resource of 53.3 million tonnes at 0.48% Cu, 0.030% Mo and 4.5 g/t Ag and indicated resource of 452.7 million tonnes at 0.28% Cu, 0.038% Mo and 3.7 g/t Ag for a total measured and indicated resource of 506.0 million tonnes at 0.30% Cu, 0.037% Mo and 3.8 g/t Ag totalling 3.3 billion pounds of contained copper, 412 million pounds of contained molybdenum and 61.4 million ounces of contained silver. Mineral Resources were calculated at 0.30% copper equivalent cut-off grade (see Terrane press release May 19, 2009).

 Other assets include an interest in the Howard’s Pass Joint Venture, which retains rights to option, Net Profit Interest and Net Smelter Return payments from Selwyn Resources Ltd. in respect of a zinc, lead and silver deposit in the Yukon. Terrane is also a minority joint venture partner with Laurentian Goldfields in the Maze Lake gold project in Nunavut.

 Thompson Creek Assets

 Thompson Creek currently owns and operates long-life open-pit primary molybdenum mines and roasting facilities, including the Thompson Creek Mine in Idaho, the Langeloth Metallurgical Facility in Pennsylvania and 75% of the Endako Mine in Northern British Columbia. Thompson Creek expects 2010 molybdenum production will be in the range of 29 to 32 million pounds, comprised of 22 to 24 million pounds from the Thompson Creek Mine and 7 to 8 million pounds from its 75% share of the Endako Mine. The expansion project that is currently underway at the Endako Mine is expected to raise Thompson Creek’s share of annual molybdenum production at that mine to 11 to 12 million pounds per annum.

 Thompson Creek also owns a high-grade underground molybdenum deposit near Smithers, B.C. known as the Davidson Project. The Project was in the advanced stages of permitting when development was halted in November 2008 due to economic uncertainty. The Davidson Project is currently being re-evaluated regarding various operating alternatives and related economic analysis. Thompson Creek is currently evaluating and has an option to acquire up to 75% of the Mount Emmons Project, a high-grade underground molybdenum deposit in Colorado.

 Details of the Arrangement

 The completion of the Arrangement is subject to, among other things, the favourable vote of 66 2/3% of the Terrane equity shareholders at a special meeting called to approve the transaction. The Arrangement will require approval by the Supreme Court of British Columbia. In addition, the transaction will also be subject to certain other customary conditions, including receipt of regulatory approvals. Terrane has also provided Thompson Creek with certain other customary rights, including a non-solicitation covenant and a right to match competing offers. In the event that the transaction is not completed, Terrane has agreed to pay Thompson Creek a termination fee equal to C$20 million, under certain circumstances. Officers and directors of Terrane have entered into support arrangements with Thompson Creek under which they have agreed to vote their shares in favour of the transaction, such shares representing approximately 1% of the current outstanding Terrane shares.

 Terrane currently has approximately 459.4 million basic and 535.6 million fully diluted shares outstanding. Total consideration payable to shareholders will therefore comprise approximately C$413 million in cash and 23.9 million Thompson Creek common shares. Terrane’s existing stock options, which are all in the money, will be exercised on a cashless basis for total consideration of approximately C$6 million and 0.4 million Thompson Creek shares.

 Terrane’s existing two series of warrants (approximately 45.5 million expiring in April 2011 with a strike price of C$1.50 and approximately 18.0 million expiring in June 2012 with a strike price of C$0.85) will remain outstanding and, in accordance with their terms, the holders thereof will be entitled to receive the same cash and share consideration as Terrane’s common shareholders upon exercise. Thompson Creek has reserved approximately 3.3 million shares for potential issuance under these two series of warrants.

 Following the completion of the proposed transaction, Terrane shareholders’ will own approximately 14% of the combined company on a fully diluted basis, including Goldcorp holding approximately 7%.

 Copies of the acquisition agreement and certain related documents will be filed with Canadian securities regulators and with the United States Securities and Exchange Commission and will be available at the Canadian SEDAR website at www.sedar.com and the U.S. Securities and Exchange Commission’s website at www.sec.gov. The management information circular in connection with the special meeting of shareholders to consider the Arrangement is expected to be mailed to shareholders over the coming weeks. The circular also will be available as part of Terrane’s public filings at www.sedar.com.

 Terrane expects to hold a shareholders’ meeting in September to consider the Arrangement and closing will occur shortly thereafter assuming receipt of all required approvals.

 The Gold Stream Transaction

 Thompson Creek and Royal Gold have entered into an agreement by which, upon Thompson Creek’s acquisition of 100% of Terrane, the Gold Stream Transaction will become effective. Royal Gold will, as part of the Gold Stream Transaction, purchase gold equal to 25% of the life of mine gold to be produced from Mt. Milligan.

 Under the terms of the Gold Stream Transaction, Thompson Creek will receive staged cash deposits aggregating $311.5 million; $226.5 million of which will be paid at the closing of the Arrangement; and $85.0 million to be paid during mine construction. The deposits will be offset against Royal Gold’s purchase of gold under the agreement. Until the deposit is completely reduced, the price for gold will be the prevailing market price. For each of the first 550,000 ounces of gold delivered to Royal Gold, Thompson Creek will receive cash per ounce equal to the lesser of a cash production payment of $400 or the prevailing market price. To the extent that the prevailing market price exceeds $400 per ounce, the deposit will be reduced. For each ounce of gold delivered thereafter, Thompson Creek will receive the lesser of $450 or the prevailing market price in cash, with any excess purchase price used to reduce the deposit. Once the deposit is reduced to nil, only the cash portion of the purchase price will be payable.

 Advisors

RBC Capital Markets is sole financial advisor to Thompson Creek in connection with the proposed transaction. RBC Capital Markets delivered an oral fairness opinion to the effect that as of July 14, 2010 the consideration to be paid under the Arrangement is fair from a financial point of view to Thompson Creek. Goodmans LLP is legal counsel to Thompson Creek in Canada and McDermott Will &Emery is legal counsel to Thompson Creek in the United States.

 National Bank Financial is sole financial advisor to Terrane in connection with the transaction and provided a fairness opinion to the board of directors. Lang Michener LLP is legal counsel to Terrane. Scotia Capital is financial advisor to the Special Committee and provided a fairness opinion. Fraser Milner Casgrain LLP provided legal advice to the Special Committee.

 Other

 Thompson Creek currently has 139.8 million basic shares outstanding and 170.6 million on a fully diluted basis. At closing Thompson Creek will issue 24.2 million shares in share component consideration for Terrane’s 459.4 million basic and preferred shares outstanding and for cashless exercise of all options. Thompson Creek is reserving 3.3 million shares as potential consideration to the holders of the Terrane warrants. Post transaction, Thompson Creek expects its basic and fully diluted share count will be 164.0 million shares and 198.2 million shares, respectively.

 Darin Labrenz, P.Geo., Vice President Business Development with Terrane, is the qualified person who prepared or supervised the preparation of the scientific and technical information concerning the Mt. Milligan and Berg projects in this news release.

 Conference Call

 Thompson Creek and Terrane will hold a conference call and webcast for analysts and investors to discuss the transaction on Thursday, July 15, 2010 at 11:00 a.m. (Eastern).

 To participate in the call, please dial 647-427-7450 or 1-888-231-8191 about five minutes prior to the start of the call. A live audio webcast of the conference call will be available at www.newswire.ca and www.thompsoncreekmetals.com. An archived recording of the call will be available at 1-800-642-1687 or 416-849-0833 (Access code 88516022 followed by the number sign) from 11:00 a.m. (Eastern) on July 15 to 11:59 p.m. on August 13. An archived recording of the webcast will also be available at Thompson Creek’s website.

 About Thompson Creek Metals Company Inc.

 Thompson Creek Metals Company Inc. is one of the largest publicly traded, pure molybdenum producers in the world. Thompson Creek owns the Thompson Creek open-pit molybdenum mine and mill in Idaho, a metallurgical roasting facility in Langeloth, Pennsylvania and a 75% share of the Endako open-pit mine, mill and roasting facility in northern British Columbia. Thompson Creek is evaluating the Mount Emmons Deposit, a high-grade underground molybdenum deposit near Crested Butte, Colorado. Thompson Creek has an option to acquire up to 75% of the property. The Company is continuing to pursue permitting of the Davidson Deposit, a high-grade underground molybdenum deposit near Smithers, B.C. Thompson Creek has approximately 750 employees. Its principal executive office is in Denver, Colorado, and it also has an office in Toronto, Ontario. More information is available at www.thompsoncreekmetals.com.

 About Terrane

 Terrane Metals Corp. is an exploration and mine development company focused on the development of the Mt. Milligan copper-gold and Berg copper-molybdenum-silver projects in British Columbia, Canada. Goldcorp Inc. (NYSE: GG; TSX: G) owns a 52.4% equity interest in Terrane on a fully diluted basis. More information is available at www.terranemetals.com.

 Terrane Technical Disclosure

 For further information on the Mt. Milligan project, please see Terrane’s “Technical Report – Feasibility Update Mt. Milligan Property – Northern BC”, completed by Wardrop, a Tetra Tech Company, effective October 13, 2009, and press release dated October 13, 2009. For further information on the Berg project, please see Terrane’s “2009 Mineral Resource Estimate on the Berg Copper-Molybdenum-Silver Property, Tahtsa Range, British Columbia”, completed by Equity Exploration Consultants Ltd., and Terrane Metals Corp., June 2009, and press release dated May 19, 2009.

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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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Serengeti Encouraged by Regional Exploration Results

Serengeti Resources is pleased to report on exploration results from six projects, including reconnaissance drilling on two properties and drill target development on four other properties. Encouraging indications of gold mineralization have been obtained from drilling on one property and very attractive targets for future drilling identified on four other properties. Results from recent additional drilling on Serengeti’s flagship Kwanika property are expected to be available in several weeks and will be released when available.

Fleet Target

Serengeti recently consolidated by staking, a key claim in the centre of its Fleet property. The claims, located 50 km SE of the Kemess Mine, host several porphyry-style copper-molybdenum-gold showings. The most developed target is defined by a five by one kilometer, open ended area of geochemical and geophysical anomalies. Historical shallow drilling in the 1970’s intersected copper-molybdenum mineralization, including 0.18% copper over 55 meters in one hole and 0.24% copper over 15 meters in a second hole. Geophysical surveys by Serengeti in 2008 and by prior operators in the mid 1990’s identified an open-ended Induced Polarization (IP) anomaly immediately adjacent to these intercepts. This IP anomaly is located in a covered valley-bottom which has not been targeted by previous explorers. In addition, sampling by Serengeti in 2008 of quartz veins outcropping on a ridge south of this IP anomaly, returned values as high as 2.8% copper, 1.3 g/t gold from selected grab samples. This is a high quality, largely covered, copper-molybdenum-gold target and additional work is planned for the 2010 field season.

Osilinka Drilling

A reconnaissance drilling program was carried out on the Osilinka property located 35 kilometer NW of Kwanika in late August and early September. Six widely-spaced shallow diamond drill holes were drilled to test several targets within a two by three kilometer area of geochemical and geophysical anomalies. In the eastern portion of the target area, a fence of three widely spaced holes identified several intervals of anomalous gold and minor Cu mineralization associated with zones of favorable silica and potassic alteration. Intersections include 1.88 g/t gold over two meters and a separate interval of 0.21 g/t gold over 18 meters in one hole and 0.10 g/t gold over 23 meters in the second. Three holes drilled in the western portion of the target area intersected un-mineralized mafic intrusive rocks.

The Osilinka property covers a 13 kilometer-long, complex magnetic anomaly of which less than half has been explored to date. The presence of porphyry-style alteration and anomalous gold in reconnaissance drilling highlights the potential of the Osilinka property to host a significant porphyry gold-copper deposit and additional work is planned for the 2010 field season.

Tchentlo — Indata Area Drilling

A reconnaissance drilling program was carried out in the Tchentlo-Indata area on the southern half of the Kwanika property during August 2009. The drilling area was located 10-25 kilometers south of Serengeti’s Kwanika copper-gold deposit, in what is interpreted to be a similar geological environment. Six widely spaced shallow diamond drill holes were drilled to test a series of geochemical and geophysical targets. Two holes drilled in the northern part of the property intersected weakly altered felsic intrusives with trace amounts of molybdenite. Two holes in the central part of the property did not penetrate what is interpreted as post-mineral sedimentary rocks similar to those that cover the Kwanika copper-gold deposit, 20 kilometers to the north. Two drill holes located in the south-eastern portion of the property encountered a zone of intensely silicified mafic intrusive with minor base metal mineralization, possibly located peripheral to a porphyry system.

Choo West Target

Compilation of proprietary prior geophysical data purchased earlier this year (see NR 2009-06 dated May 11, 2009) has identified several attractive targets on the western portion of Choo property. The new targets comprise several bulls-eye IP and magnetic anomalies, one to two square kilometers in extent and show similarities to targets recently described by Terrane Metals from the Mt Milligan area, located thirty kilometers to the east. This new area of interest lies west of the road network being used to support the recent drill program at Choo; (see NR 2009-11 dated October 13, 2009) so a helicopter supported follow-up program is planned for 2010 to confirm these targets.

Germansen & Valleau Targets

Mobile metal ion (MMI) partial extraction geochemistry was completed this summer over several IP targets previously identified by Serengeti at the Germansen and Valleau properties located 12 and 20 kilometers east respectively of Serengeti’s Kwanika property. At Valleau, two “rabbit-ear” or double peaked copper-silver-zinc anomalies were identified flanking IP chargeability anomalies, representing a classic drill target. At Germansen a linear zone of enriched copper was identified associated with an IP anomaly. Additional geochemical areas of interest were also identified on both properties. These targets could rapidly be upgraded for drilling by a follow-up program in 2010.

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Serengeti Expands Potential of South Zone at Kwanika

Serengeti Resources reports the additional results from this summer’s exploration program at the Company’s Kwanika property in British Columbia.

Two new mineralized intercepts from drilling on the South Zone indicate that the South Zone extends to considerably greater depth than has been previously noted. The drilling has also shown that the South Zone, which abuts against a fault on the west side, the “West Fault”, is open to the south and east as well as to depth. More drilling is underway to expand the South Zone.

The results include a deep intercept grading 0.43% copper, 0.02 g/t gold, 2.0 g/t silver and 0.049% molybdenum (0.80% copper equivalent) over 65.5 meters in hole K-136 and in hole K-124, 0.36% copper, 0.01 g/t gold, 1.4 g/t silver and 0.007% molybdenum (0.43% copper equivalent) over 58 meters. The intercept from hole K-124 is additional to the previously reported 242.5 metres of mineralization.

Drill Holes K-09-124, K-09-129 to K-09-137 Significant Analytical Results

Hole

From (m)

To (m)

Interval (m)

Copper %

Gold g/t

Silver g/t

Mo %

Copper Equiv. %*

Gold Equiv. g/t*

Zone

Orientation (dip/azimuth)

K-124

259.5

622.0

362.5

0.35

0.04

1.7

0.014

0.49

0.84

South

Vertical

Incl. 259.5**

502.0

242.5

0.41

0.05

2.1

0.018

0.58

1.00

And 564.0

622.0

58.0

0.36

0.01

1.4

0.007

0.43

0.73

K-136

412.0

440.0

28.0

0.09

0.00

0.6

0.008

0.15

0.26

South

-65º / 90º

502.0

677.5

175.5

0.26

0.01

1.1

0.024

0.44

0.76

Incl. 524.0

589.5

65.5

0.43

0.02

2.0

0.049

0.80

1.37

And Incl. 660.0

677.5

17.5

0.33

0.01

0.8

0.003

0.36

0.63

K-130

80.0

82.0

2.0

0.17

0.22

1.6

0.017

0.43

0.74

East

-60º / 270º

K-132

91.8

97.9

6.1

0.47

0.14

0.9

0.003

0.58

1.00

North

-65º / 90º

K-133

Incl. 140.3

249.1

108.8

0.04

0.01

0.1

0.000

0.05

0.08

North

Vertical

K-129, 131, 134, 135, 137 indicated NSV

*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).
** Previously Reported.

“The drilling reported on here adds size and depth to the South Zone and clearly indicates major expansion potential to the south and east.” stated President and CEO David Moore. “Hole K-136 in particular has returned excellent grades adjacent to the West Fault on the South Zone. Recent geological and geophysical modeling has traced this newly identified fault six kilometers to the south, opening up a large area for future exploration. We are very encouraged by the newly demonstrated potential at depth in the South Zone as indicated by holes K-124 and K-136. We are currently drilling several additional holes testing this potential.” added Moore.

South Zone Drilling (K-124, and K-135 to 137): Shallow drilling prior to Serengeti’s exploration suggested a limited resource that required more testing. Serengeti’s recent work has indicated the potential for expansion is wide open. Vertical drill hole K-124, the upper portion of which was previously reported (see NR 2009-08 dated August 26, 2009) was deepened and as noted above an additional mineralized interval grading 0.36% copper, 0.01 g/t gold, 1.4 g/t silver, 0.007% molybdenum (0.43% copper equivalent) over 58.0 meters was intersected. The overall mineralized intercept in K-124 now grades 0.35% copper, 0.04 g/t gold, 1.7 g/t silver, 0.014% molybdenum (0.49% copper equivalent) over 362.5 meters. K-136, an angle hole drilled from the west, drilled though the West Fault and then encountered a 175.5 meter mineralized interval to the bottom of the hole at 677.5 meters, including an interval assaying 0.43% copper, 0.02 g/t gold, 2.0 g/t silver, 0.049% molybdenum (0.80% copper equivalent) over 65.5 meters. Due to orientation and deviation of the drill hole, the intercept in K-136 lies on the same section as K-124.

K-135 which was unmineralized was a west-directed angle hole drilled from the collar of K-124 and helped define the West Fault. K-137 was drilled off the north end of the South Zone and was not mineralized.

North Area Drilling (K-131 to 134): Hole K-131, 132, 133 were drilled in the vicinity of previously reported hole K-08-122 which intersected 0.42% copper, 0.06 g/t gold, over 76.2 meters, approximately one kilometer north of the Central Zone resource. These three recent holes demonstrate that the K-122 area is structurally complex, with the best interval, 0.47% copper, 0.14 g/t gold occurring over 6.1 meters in hole
K-132 and a broad zone of anomalous copper intersected in K-133. Hole K-134 which was drilled off the north east end of the Central Zone was unmineralized.

East Area Drilling (K-129 and K-130): Two holes were drilled in the north-east quadrant of the property, with K-130 encountering a narrow mineralized interval grading 0.17% copper, 0.22 g/t gold over 2 meters immediately below unexpectedly deep overburden. K-129, drilled 1.4 kilometers to the south did not intersect significant mineralization.

Drill Program Summary Drilling has now been completed on Serengeti’s Osilinka property and results will be released when available. Drilling has now resumed at the South Zone at Kwanika, after which the drill will be moved to test attractive targets on the Choo and Mil properties.

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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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Serengeti Announces Larger Summer Drilling Program on Kwanika and High Priority Regional Targets

Serengeti Resources has increased its exploration budget for this summer’s drilling program, now scheduled to start at the Company’s 100% owned Kwanika copper-gold property on or about June 20th. The budget for the summer program has been increased by 20% to $3.1 million, and this, together with lower prices for 2009 project work, will enable Serengeti to drill approximately 6,750 meters in 27 holes, testing nine exploration targets across four properties. In addition, joint venture partner Newcrest Mining BC Limited has received approved work permits for a separate 2,400 meter drill program on Serengeti’s Croy Bloom property.

The following table summarizes the number of holes, meters and targets on each property.

2009 Discovery Opportunities

Property

Holes

Meters

Targets

Commodity

Kwanika Central

12

3,400

4

Cu Au Mo

Kwanika South

5

1,000

2

Cu Au Mo

Osilinka

5

1,000

1

Cu Au Ag

Mil

3

750

1

Cu Au

Choo

2

600

1

Cu Au

Croy Bloom (Newcrest)

4

2,400

3

Cu  Au

Total

31

9,150

12

Cu Au Mo Ag

The drilling program will start on the Kwanika property where approximately half of the program will test:

  • High priority targets around the Central Zone where an Indicated Resource of 75 million tonnes grading 0.41% copper and 0.42 g/t gold was announced on February 25, 2009, (see NR 2009-04).
  • Step-outs to the South Zone where 2008 drilling in 14 holes returned an average of 0.36% copper, 0.13 g/t gold and 0.01% molybdenum over an average 82 meter composite intercept. The objectives of the drill program are to significantly expand the known mineralized zones and search for new centers of good grade copper-gold-molybdenum mineralization.

The balance of the drill program funded by Serengeti is as follows:

  • 1,000 meters on two other targets in the very large Kwanika block, including three holes on a strong copper-molybdenum geochemical response coincident with an induced polarization (IP) geophysical anomaly 10 km south of the Central zone, and two holes on a copper-gold target at the southern end of the claim block.
  • 1,000 meters in five holes to test a highly attractive copper-gold-silver geochemical and coincident IP anomaly on the Osilinka block located 35 km north of Kwanika.
  • 750 meters in three holes testing a target with attractive IP geophysical and gold geochemical results on the Mil property located 15 km west of the Mt. Milligan copper-gold deposit. The Mil property is currently held in a 50-50% joint venture with Fjordland Exploration Inc. Serengeti will fund the 2009 drilling and earn additional ownership in the Quest JV including Mil.
  • 600 meters in two holes testing a very large IP anomaly on the Choo property. Drilling in the vicinity in the 1990’s by a previous owner showed anomalous copper-gold mineralization. Exploration data recently purchased by Serengeti from Amarc Resources Ltd also indicates two additional IP geophysical targets (coincident in one case with a copper geochemical anomaly) on the Choo property and follow up is planned on these new targets this season.

In addition to the program funded by Serengeti, Newcrest Mining BC Limited has received approved work permits for a four hole deep drilling program on Serengeti’s Croy Bloom-Davie Creek property located 85 kilometers south of the Kemess mine.

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Serengeti Purchases Exploration Data

Serengeti Resources wishes to announce that it has entered into an agreement with Amarc Resources to purchase certain proprietary historical exploration data, including geophysical survey and drilling results from work conducted by Amarc on portions of the Choo property which is now held by Serengeti and the Mil property which is held by Serengeti and Fjordland Exploration Inc.

In consideration for the purchase of the data, Serengeti has agreed to issue Amarc 100,000 common shares of Serengeti, subject to acceptance by the TSX Venture Exchange. The shares will be subject to the statutory four month hold period.

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Serengeti Resource Estimate Confirms 1.6 Million Ounce Gold and 1.1 Billion Pound Copper Indicated Resource at Kwanika

Serengeti Resources  is pleased to announce the initial mineral resource estimate for the Central Zone at the Company’s 100% owned Kwanika copper-gold property in British Columbia.

The estimate for the Central Zone is based on 78 holes totaling 40,784 meters drilled between 2006 and 2008 which establish the volume, grade, and continuity of the mineralization. The mineral resources are reported within a defined volume and at various cut-off grades as presented below in the table of Kwanika Central Zone Mineral Resources.

At a 0.25% copper equivalent (Cu Eq)1 cut-off the Kwanika Central Zone Mineral Resources are:

  • 182.6 million tonnes of Indicated Mineral Resources grading 0.47% Cu Eq or 0.71 g/t Au Eq, containing 1.62 million ounces of gold and 1.15 billion pounds of copper; AND
  • 28.5 million tonnes of Inferred Mineral Resources grading 0.32% Cu Eq or 0.49 g/t Au Eq containing an additional 0.2 million ounces of gold and 120 million pounds of copper.

A higher grade core within the zone, at a 0.4% Cu Eq cut-off, yields:

  • 75.1 million tonnes of Indicated Mineral Resources grading 0.69% Cu Eq or 1.05 g/t Au Eq, containing 1.02 million ounces of gold and 680 million pounds of copper.

The estimate was prepared by independent geological and mining consultants, Scott Wilson Roscoe Postle Associate Inc., under the direction of David W. Rennie, P.Eng. an independent Qualified Person, as defined by the National Instrument 43-101. Mr. Rennie has reviewed and approved the contents of this release. A technical report providing details of the estimate will be filed on Sedar (www.sedar.com) within 45 days.

“We are extremely pleased to have achieved this important milestone at Kwanika.” stated Serengeti Resources President and CEO, David W. Moore. “This NI 43-101 compliant Indicated Resource containing 4.2 million ounces gold-equivalent is a very significant building block for the Company. In light of current market conditions, our efforts this year at Kwanika will focus on selectively testing targets in the vicinity of the resource area, including targets mentioned elsewhere in this release, to seek and expand additional high grade mineralized centers.” elaborated Moore.

Kwanika Central Zone Indicated Mineral Resources

CuEq
% Cut-off

Tonnage
 Mt

Au
g/t

Au
 M oz

Cu
%

Cu
M lb

    Cu
 Eq %

Au Eq
g/t

1.00

10.20

0.90

0.295

0.77

173.0

1.36

2.07

0.75

21.93

0.70

0.494

0.63

304.9

1.09

1.66

0.50

48.58

0.51

0.801

0.49

521.3

0.82

1.26

0.45

59.31

0.47

0.894

0.45

591.6

0.76

1.16

0.40

75.07

0.42

1.015

0.41

684.0

0.69

1.05

0.35

98.42

0.37

1.170

0.37

806.4

0.61

0.94

0.30

133.26

0.32

1.370

0.33

964.8

0.54

0.82

0.25

182.63

0.28

1.616

0.29

1,152.6

0.47

0.71

Inferred Mineral Resources

CuEq
% Cut-off

Tonnage
 Mt

Au
g/t

Au
 M oz

Cu
%

Cu
M lb

     Cu
     Eq %

Au Eq
g/t

1.00

0.01

0.83

0.000

0.61

0.1

1.16

1.77

0.75

0.22

0.52

0.004

0.51

2.4

0.86

1.31

0.50

1.15

0.40

0.015

0.39

9.7

0.65

0.99

0.45

1.59

0.37

0.019

0.36

12.5

0.60

0.91

0.40

2.99

0.31

0.030

0.31

20.6

0.52

0.79

0.35

6.20

0.27

0.053

0.27

36.4

0.44

0.67

0.30

14.47

0.23

0.106

0.22

71.4

0.37

0.57

0.25

28.54

0.20

0.181

0.20

122.5

0.32

0.49

Note 1: Copper and gold equivalent calculations use metal prices of US$2.00/lb for copper and US$900/oz for gold and do not include factors for metallurgical recoveries. Preliminary metallurgical testing on one composite sample from Kwanika has indicated 88.5% recovery for copper and 65.2% recovery for gold in a locked cycle test. Characterization work is underway on gold distribution and additional test work could result in improved gold recovery. Cu Eq = Cu % + [Au g/t x ( 900 / 31.1 / 2.00) / 22.06] Au Eq = Au g/t + [Cu % x ( 22.06 x 2.00) / ( 900 / 31.1)]

Note 2: CIM 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 volume or shell defined by long term metal price estimates of US $2.00/lb for copper and $900/oz for gold. A 0.25% Cu Eq cut-off is considered to be reasonable for a porphyry deposit open pit in this location.

Drilling elsewhere on the property has indicated three additional mineralized areas for which drilling density is not currently sufficient to estimate a resource (see table below). The South Zone, has approximate dimensions of 1000 meters by 300 meters; the South historical Zone, 600 meters by 300 meters; the North target is presently defined by one hole (see maps on www.serengetiresources.com). Importantly, all three areas remain open for expansion and additional targets also include a geochemically anomalous trend lying to the east of the Central Zone as well as a very attractive new target located 10 km to the south described in news release #2009-02 dated January 26, 2009. Drilling in any one of these areas could result in the discovery of additional high grade, near surface copper-gold mineralization.

Other Mineralized Zones

Zone

# of Holes Cu Eq
%Cut-off

Average Composite Intercept

(Length m) Cu% Au g/t Mo% Cu Eq%
South

14

0.25

82

0.36

0.13

0.013

0.53

South Historical

11

0.25

40

0.31

—-

0.008

0.37

North target

1

—-

76

0.42

0.06

trace

0.46

Note 3: Copper equivalent calculation uses metal prices of US$2.00 per pound for copper, US$900/oz for gold and US$15/lb for molybdenum with no provision for metallurgical recoveries. Cu Eq = Cu % + [(Mo % x 15/2.00) + (Au g/t x 900 / 31.1 / 2.00 / 22.06)]

Note 4: Gold data are not available for the South Zone historical drilling.

The Kwanika discovery has demonstrated that important tonnages of higher grade, supergene-enriched porphyry copper-gold mineralization can occur in the Quesnel Trough of B.C., where very favorable geology for hosting these deposits is blanketed by widespread overburden. Modern geophysical techniques are now able to penetrate this overburden cover and open up this very large under-explored area for exploration. Within this region, Serengeti has extensive holdings with many high quality exploration targets which remain to be tested.

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 focused on the advancement of its Kwanika copper-gold project and on the discovery of gold and copper deposits on its extensive portfolio of properties in the highly prospective Quesnel Trough of British Columbia. 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 working capital position of approximately $9.0 million.

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. Sample analysis for the Kwanika drilling was completed at Global Discovery Lab in Vancouver, BC. A comprehensive quality assurance/quality control program formed part of the sampling protocol in addition to the laboratory’s own quality assurance program.

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Serengeti Extends Exercise Term of Warrants

Serengeti Resources advises that, subject to regulatory approval, it has agreed to extend the exercise term of a total of 1,559,000 share purchase warrants which were issued in its private placement of Flow Through Shares and Non-Flow Through Units which closed February 16, 2007.

In accordance with new TSX-V Policies allowing for the extension of the exercise terms for previously issued share purchase warrants, the Company intends to extend the exercise term of the above warrants for an additional one year, from an expiry date of February 13, 2009 to an expiry date of 4:30pm PST on February 13, 2010 (the “Extended Expiry Date”). The exercise price of these warrants will remain at $1.00 per share.

If, at any time prior to the Extended Expiry Date of the 1,559,000 warrants, the weighted average closing price of the Company’s shares is $1.25 or greater for a period of 10 consecutive trading days (“Premium Trading Days”), the Company will impose a provision that the warrant holders will be given 30 days after the tenth Premium Trading Day to exercise their warrants, otherwise the warrants will expire on the 31st day.

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