NEWS Serengeti options New Brunswick goldSerengeti options New Brunswick gold prospect
Serengeti Resources Inc SIR
Shares issued 4,815,265 Sep 23 close $0.08
Mon 23 Sept 2002 News Release
Also (PHR)
Mr. Jim Romano of Serengeti Resources reports
NEW GOLD PROJECT
Serengeti has entered an option agreement to acquire a 100-per-cent
interest in a contiguous group of approximately 225 mineral claims located
in southeast New Brunswick and totalling approximately 3,600 hectares. The
target mineral is gold. The claims -- referred to as the Springfield
project -- are adjacent to and west of the Sheba gold project of Pathfinder
Resources Ltd., a high-grade gold discovery made in October, 2001, on which
an initial diamond drill program has just commenced.
The agreement is with Pathfinder. To acquire its 100-per-cent interest in
the claims, Serengeti is to pay Pathfinder $25,000 upon regulatory approval
to cover the costs of staking and recording the claims; undertake
exploration expenditures totalling $1-million over four calendar years,
being $50,000 in 2002, $150,000 in 2003, $300,000 in 2004 and $500,000 in
2005; and issue a total of one million shares to Pathfinder over the same
four calendar years, being 50,000 shares in 2002, 150,000 shares in 2003,
300,000 shares in 2004 and 500,000 shares in 2005. The 2002 expenditure and
share issue are firm commitments upon regulatory approval; all others are
optional based on continued successful exploration of the project.
Pathfinder retains a 2-per-cent net smelter return royalty on mineral
production, which Serengeti may reduce to 1 per cent at any time by paying
Pathfinder $1-million.
Pathfinder's Sheba gold project originated with a high-grade gold discovery
in October, 2001, in a quarry providing road fill for a new section of the
Trans-Canada Highway. Gold samples from outcrop assayed up to 7.5 grams per
tonne gold, and samples from the numerous large mineralized boulders of
blast rock assayed as high as 22.5 grams per tonne gold. On the Sheba
property, the gold occurs in a disseminated sulphide-bearing,
hydrothermically altered gabbro which is cut by a major northwest-trending
fault. Pathfinder has to date expanded its holdings to approximately 11,000
hectares. During this summer Pathfinder carried out an induced polarization
(IP) survey which defined a large geophysical anomaly spatially related to
the original discovery; in addition, a soil geochemical survey defined a
gold anomaly which coincides with the IP geophysical anomaly.
These encouraging and consistent results have led Pathfinder to establish
an initial drill program of 2,000 metres of NQ drilling in 10 to 15 holes,
which commenced Sept. 19, 2002.
Ian Brown, president of Serengeti, stated: "We are excited to acquire a
large land position in a new gold play, which has been established by
classic prospecting. The geology underlying the Springfield claims provides
a reasonable expectation that the Sheba gold environment extends to the
west-southwest, and we look forward to our field programs this fall to test
the potential of this claim group."
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