Serengeti reported final assays from summer drilling
at its Kwanika copper-gold deposit in central
British Columbia. Most significant were the results
from the South Zone, which included grades up to
0.66% copper equivalent over 124 meters.
Results suggest that the South Zone may host a
significant resource that could add considerable
tonnage to the resource already outlined at the
Central Zone. Results from the South Zone are
being incorporated into a resource estimation that
is expected in mid 2010. Further drilling is planned
for next year to further test this zone.
The Kwanika Central Zone hosts an indicated
resource of 183 million tonnes grading 0.29%
copper and 0.28 grams per tonne gold for a total of
1.6 million ounces gold and 1.1 billion pounds
copper (as reported February 25, 2009). The
project is road accessible and is located 85 kilometers
from Terrane Metals (TRX-TSXV) Mount
Milligan deposit where development is getting underway.
It is 200 kilometers from Northgate’s producing
Kemess mine, where ore is expected to run
out in 2011. Grid power is accessible 75 kilometers
away.
Serengeti and 50% joint venture partner Fjordland
Exploration (FEX-TSXV) are conducting drilling
to test geophysical and geochemical anomalies on
the Mil property, one of eleven properties that
comprise the QUEST district joint venture.
Serengeti is also conducting drilling at its 100%
owned Choo property located adjacent to Mil.
Serengeti has a number of other highly prospective
earlier stage properties in British Columbia and
recently gave an update of exploration results on a
number of these properties. In addition, Serengeti
is looking for additional projects outside of British
Columbia to diversify and expand its portfolio.
The company has a working capital of $8.6
million, which accounts for half of its market value
at this share price. It is being given little value for
the deposit it has outlined nor the expansion
potential. The project is similar to the Mt. Milligan
deposit, with supports a half billion dollar valuation
for Terrane. As that project moves into
development, other projects in the area, such as
Serengeti’s project, will begin to attract a great
deal more investor attention.