VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 22, 2010) - Serengeti Resources Inc. (TSX VENTURE:SIR)(FRANKFURT:34S) today announced results from the first three holes of a major drill campaign underway at the Kwanika copper-gold project in the Quesnel Trough of north-central British Columbia.
*Copper-equivalent calculation uses 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 assumes 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)
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.
The three holes were spaced approximately 150 meters apart and were drilled to test the near surface extent of the northwest edge of the South Zone (see accompanying map). The best of these, K-141 encountered a 67.9 meter interval grading 0.36% copper, 0.07 g/t gold and 3.1 g/t silver and, before encountering the West Fault at 115 meters depth. A higher grade interval assaying 0.54% copper, 0.04 g/t gold and 4.0 g/t silver over 20 meters lies adjacent to the east of the fault and a molybdenum enriched interval grading 0.025% moly over 14.2 meters lies west of the fault. K-143 yielded a narrower interval of similar grade and K-142 was collared west of the fault and consequently did not return significant results.
"We are encouraged by these initial results," said David Moore, President & CEO, Serengeti Resources Inc. "While there are still many results to come before we can reassess and potentially upgrade our resources, the presence of mineralization in two of the first three holes is a good start."
Approximately 5,500 meters of drilling has been completed in 20 holes in this year's program and an additional 2,500 meters in 9 holes are currently planned. Additional results will be released in batches as they become available.
The objective of the 2010 drill program is to expand the existing resource at the South Zone. 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, plus 1.0 billion pounds of copper and 0.5 million ounces of gold in the Inferred Resource category, all estimated at a 0.25% copper equivalent cut-off grade (see following table). Upon completion of this summer's drill program at Kwanika, the Company expects to update the Resource Estimate and complete a Preliminary Economic Assessment.
Kwanika Mineral Resources
Note 1: Copper equivalent calculation uses the following USD metal prices; copper, $2.00/lb; gold, $900/oz; molybdenum, $15/lb; silver, $12/oz; and makes no provision for metallurgical recoveries and net smelter returns. CuEq = Cu % +(Mo% x 15/2.00) +(Au g/t x ( 900 / 31.1 / 2.00) / 22.06) + (Ag g/t x (12/31.1/2.00)/22.06) The base case cut-off used for the Mineral Resources was 0.25% CuEq which is comparable to other porphyry copper open-pit deposits in BC.
To view the map accompanying this news release, please click on the following link: http://media3.marketwire.com/docs/sir722m1.jpg
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. 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.
PLEASE NOTE: Serengeti Resources will hold its Annual General Meeting on Thursday August 19th, 2010 at 10:30 am.
It will take place at the Terminal City Club, 837 West Hastings Street, Vancouver, B.C.
Quality Assurance/Quality Control
Sample analysis for the current program was completed at Acme Analytical Laboratories Ltd in Vancouver, BC. A comprehensive quality assurance/quality control program including duplicate samples, blanks and standards form part of the sampling protocol in addition to the laboratory's own quality assurance program. The field program was supervised by Serengeti Resources Inc. staff and 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.
Cautionary Statement
This document contains "forward-looking statements" within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company's documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.