VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/27/10 -- Serengeti Resources Inc. (TSX VENTURE: SIR)(FRANKFURT: 34S) is pleased to announce the formation of a Mexican subsidiary company and acquisition of a 100% interest in three gold-silver exploration properties in the State of Chihuahua, Mexico. The properties were staked in December 2009 immediately following the announcement of the discovery by Valley High Ventures Ltd and Levon Resources Ltd. of the Cordero-Sanson prospect, Mexico's latest potentially large tonnage silver-gold deposit. Title for the three properties was recently received by Serengeti's Mexican subsidiary, Compania Minera F.B. Integral SA de CV ('CMI'). Exploration is planned for later this year.
Following the announcement of the discovery in the fall of 2009, Serengeti took immediate steps to secure a strategic position in the district (see accompanying map, click on the following link: http://media3.marketwire.com/docs/SIRmap27.jpg). The Cordero project and Serengeti's adjacent 30,047 hectare Cristobal claim block lie immediately to the north of the San Antonio del Potrero and adjacent Hidalgo de Parral mining camps, historically a major silver producing district.
Serengeti's Cristobal claim covers the only 'open' direction on strike of the Cordero-Sanson discovery because much of the ground in the state of Chihuahua was locked up by the Mexican government in 2007 (see 'SGM Exclusion Area' on the accompanying map). This highly prospective area lies within an emerging major trend in Northern Mexico that includes the Penasquito, Camino Rojo, San Augustin and Pitarilla bulk-tonnage silver-gold deposits. Work on Cordero by Valley High and Levon has now identified a northeast-southwest linear trend some 15 by 3 kilometers in extent that includes at least five intrusive mineralized centers. The discovery drill hole at Cordero graded 80.6 g/t silver, 0.61 g/t gold, 1.4% zinc and 1.2% lead over 152 metres. Serengeti's Cristobal property covers approximately 15 kilometers of the immediate potential extension of this favourable trend and is largely overlain by post-mineral cover. Satellite image analysis and regional government aeromagnetics substantiate the extension of this trend across the Cristobal claim. An exploration program is being formulated and is expected to commence in the third or fourth quarter. In addition to Cristobal, Serengeti concurrently staked the Victoria claim (10,983 hectares) and Dorado claim (5,085 hectares) that cover additional exploration targets in the area.
'We are excited to have secured this key opportunity in what may become an important large-scale mining district,' said David Moore, President and CEO. 'The properties provide both geographic and commodity diversification and are a great addition to our B.C. portfolio which of course includes the Kwanika copper-gold deposit. We are well funded and look forward to initiating exploration on these newly acquired properties in this very prospective gold-silver district.'
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 Inc. will hold its Annual General Meeting on Thursday August 19th, 2010 at 10:30 a.m. at the Terminal City Club, 837 West Hastings Street, Vancouver, B.C.
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 & 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.
Contacts:
Serengeti Resources Inc.
Martti Kangas
Investor Relations
647-521-9261
mkangas@proconsulcapital.com
Serengeti Resources Inc.
Andreas Curkovic
Investor Relations
416-577-9927
acurkovic@proconsulcapital.com
Serengeti Resources Inc.
604-605-1300
www.serengetiresources.com
