Serengeti Resources gives background on Kwanika
2005-02-08 09:13 ET - News Release
Mr. David Moore reports
SERENGETI RESOURCES PROVIDES UPDATE ON KWANIKA COPPER-GOLD ACQUISITION
Serengeti Resources Inc. has provided further details on the Kwanika porphyry copper-gold property located in the Quesnel trough of central British Columbia. Serengeti originally announced the acquisition by staking of a 100-per-cent interest in Kwanika in its news release in Stockwatch Jan. 19, 2005. The property is road accessible and lies 50 kilometres south-southeast and 85 kilometres northwest of the Lorraine and Mt. Milligan copper-gold deposits in central B.C., respectively.
Previous work at Kwanika between 1966 and 1972 identified a historical resource of 36 million tonnes grading 0.2 per cent copper, based on 12 diamond and percussion drill hole intersections over an area measuring 490 metres by 300 metres (see Canadian Institute of Mining and Metallurgy Special Volume 15 (1976) table 1). Although gold was not analyzed for in the core or the cuttings, 38 surface rock samples collected by a previous operator subsequent to the drilling yielded an average grade of 150 parts per billion (0.15 gram per tonne) gold from outcrops within the resource area.
These data are historical in nature and were compiled before implementation of National Instrument 43-101 reporting standards. Investors are cautioned that recent independent verification of the data has not been performed and Serengeti has not completed any exploration to verify the historical resource estimates. Serengeti is not treating the historical estimates as National Instrument defined resources verified by a qualified person, and the historical estimate should not be relied upon. Serengeti has, however, conducted a review of the assessment reports filed with the British Columbia government and related publications, which do show maps of the distribution of the drill holes and copper intersections from each of the 12 holes. The weighted average of these intersections does agree with the reported average copper grade.
The mineralized zone is reported to consist of pyrite, chalcopyrite and rare molybdenite in altered monzonite. This zone lies within a 3,000-metre-long open-ended induced polarization geophysical anomaly. The most northerly drill hole within this anomaly, located 800 metres north of the resource area, was reported to contain 0.09 per cent copper over 76 metres.
Excellent potential exists on the property for additional porphyry copper-gold mineralization in the untested induced polarization anomaly to the north and south of previous drilling as well as to depth and to the west in the area of the reported resource. Management of Serengeti is extremely pleased with this acquisition and plans are being developed to advance exploration on this attractive prospect.
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by the company's qualified person, David W. Moore, PGeo, president and chief executive officer of Serengeti Resources.
Merger of Serengeti's auditors
Due to the merger of its accounting practice, the company's auditors have changed from G. Ross McDonald, CA, to Smythe Ratcliffe Chartered Accountants, effective Feb. 1, 2005.
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