VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/17/10 -- Serengeti Resources Inc. (TSX VENTURE: SIR)(FRANKFURT: 34S) today announced the commencement of its 10,000 meter major drill campaign at the Kwanika copper-gold project in the Quesnel Trough of north-central British Columbia.
David Moore, President & CEO of Serengeti, said, 'This planned $2.7 million program provides the opportunity to move Kwanika over the development threshold both in terms of tonnage and grade. We have carefully planned this campaign based on our emerging model of the deposit that suggests that the South Zone offers the potential for discovery of additional near-surface, open-pitable mineralization. Our goal is to enhance the resources at Kwanika so that we can initiate an economic evaluation of the project.'
The drill program will be comprised entirely of step-out drilling to expand the existing resource at the South Zone where 70% of the favorable 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, 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 summers' drill program at Kwanika, the Company expects to update the Resource Estimate, followed by completion of a Preliminary Economic Assessment. Serengeti is well funded to advance its projects with a current working capital position of $8.1 million which includes $2.9 million receivable from the B.C. government's METC program. Serengeti has 46.0 million shares issued and outstanding or 51.6 million shares on a fully diluted basis.
Kwanika Mineral Resources
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Tonnage Cu Au Ag Mo CuEq
Zone Category CuEq % Cut-off Mt % g/t g/t % %
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Central Indicated 0.40 75.1 0.41 0.42 - - 0.69
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0.25 182.6 0.29 0.28 - - 0.47
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Inferred 0.25 28.5 0.19 0.20 - - 0.32
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South Inferred 0.40 62.2 0.41 0.09 2.25 0.014 0.59
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0.25 129.1 0.30 0.09 1.76 0.010 0.45
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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.
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 (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Serengeti Resources Inc.
Investor Relations
604-685-8184
mchant@serengetiresources.com
Serengeti Resources Inc.
604-605-1300
www.serengetiresources.com
