VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 14, 2016) - Serengeti Resources Inc. (TSX
VENTURE:SIR)(FRANKFURT:34S) reports the results of a recently completed, independent mineral resource estimate for its
Kwanika property located in north central British Columbia. The resource includes a high-grade, well defined domain within the
Central Zone on the property, estimated to contain 57.7 million tonnes grading 0.48% copper and 0.55 g/t gold at a 0.4% copper
equivalent cut-off. The resource estimate is based on a 122 drill holes totaling 57,454 metres drilled on the Central Zone by
Serengeti between 2006 and 2016 and includes three holes drilled earlier this year in a program fully funded by partner, Daewoo
Minerals Canada.
| MINERAL RESOURCE STATEMENT*& SENSITIVITY ANALYSIS, KWANIKA CENTRAL ZONE |
| (SRK Consulting, Effective November 1, 2016) |
| |
| Category |
Quantity
(x1000
Tonnes) |
|
Cut-off
Cu Eq
(%) |
Grade |
Contained Metal |
Cu
(%) |
Au
(g/t) |
Ag
(g/t) |
Cu
(000's lb) |
Au
(000's oz) |
Ag
(000's oz) |
| Pit Constrained |
|
|
|
|
|
|
|
|
|
| Indicated |
101,500 |
|
0.13 |
0.31 |
0.32 |
0.96 |
697,200 |
1,040 |
3,120 |
| Inferred |
31,900 |
|
0.13 |
0.17 |
0.14 |
0.59 |
118,500 |
140 |
610 |
| Underground |
|
|
|
|
|
|
|
|
|
| Indicated |
29,700 |
|
0.27 |
0.34 |
0.36 |
1.05 |
222,300 |
350 |
1,010 |
| Inferred |
7,900 |
|
0.27 |
0.23 |
0.17 |
0.68 |
39,800 |
40 |
170 |
| Sensitivity Analysis at Various Cu Eq Cut-off Grades |
| Total Indicated |
31,800 |
|
0.60 |
0.61 |
0.75 |
1.76 |
427,300 |
760 |
1,800 |
| 57,700 |
|
0.40 |
0.48 |
0.55 |
1.43 |
609,500 |
1,020 |
2,650 |
| 133,500 |
|
0.20 |
0.32 |
0.33 |
0.98 |
941,800 |
1,420 |
4,210 |
| * |
Pit constrained mineral resources are reported in relation to a conceptual Whittle pit shell and
underground resources are reported within the area for potential underground development. Mineral resources are not mineral
reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the
estimate. All composites have been capped where appropriate. |
| ** |
Pit constrained mineral resources are reported at a copper equivalent cut-off of 0.13% and underground
resources are reported at 0.27%. The cut-offs are based on prices of US$3.00 per pound of copper, US$1,300 per ounce of
gold, US$20 per ounce of silver, US$9.00 per lb of molybdenum and assumed recoveries of 89% for copper, 70% for gold, 75%
for silver, and 60% for molybdenum. |
"We are very pleased with the results of this resource estimate, which I believe will significantly improve the economics
of the Kwanika Project" stated David W Moore, President & CEO of Serengeti Resources. "Furthermore, K-16-177, one of the
recent drill holes incorporated into the current estimate and drilled though the heart of the Central Zone, perpendicular to
virtually all the prior holes, indicates the possibility of an additional modest increase in copper grade and a more significant
increase in gold grade if the trend identified by K-177 holds up. While one hole is not statistically significant, it
demonstrates additional potential upside at Kwanika, as do our two other exploration holes reported on earlier in September"
said Moore.
Dr. Kyu Youl Sung, General Manager of Mineral Resources Division of POSCO-Daewoo stated "We are gratified to see that this
independent study supports Daewoo's early contention that the Central Zone could contain a higher grade core zone than was
recognized by prior work. We are pleased with the progress of the partnership with Serengeti, the project results to date and
look forward to seeing these results incorporated into a revised mining and economic study which is the next step",
elaborated Sung.
The partners also announce that Moose Mountain Technical Services has been engaged to carry out the revised mine optimization
and financial study for the project. This study is due for completion on or before March 1, 2017 with the objective of
incorporating the results into a revised Preliminary Economic Assessment ("PEA") and N.I. 43-101 Technical
Report.
As part of the recent resource study, a resource estimate update at 0.13% copper equivalent cut-off was also completed for the
South Zone on the Kwanika property and the results are shown in the following table. This estimate is based on 58 holes,
totaling 17,958 meters drilled on the South Zone by Serengeti, between 2008-2010.
| MINERAL RESOURCE STATEMENT* KWANIKA SOUTH ZONE (SRK Consulting, Effective November 01,
2016) |
| Category |
Quantity |
Grade |
Contained Metal |
(x1000
Tonnes) |
Cu
(%) |
Au
(g/t) |
Ag
(g/t) |
Mo
(%) |
Cu
(000's lb) |
Au
(000's oz) |
Ag
(000's oz) |
Mo
(000's lb) |
| Inferred |
33,300 |
0.26 |
0.08 |
1.64 |
0.01 |
191,400 |
80 |
1,760 |
7,470 |
| * |
Pit constrained mineral resources are reported in relation to a conceptual Whittle pit shell. Mineral
resources are not mineral reserves and do not have demonstrated economic viability. All figures are rounded to reflect the
relative accuracy of the estimate. All composites have been capped where appropriate. |
| ** |
Pit constrained mineral resources are reported at a copper equivalent cut-off of 0.13%. The cut-offs are
based on prices of US$3.00 per lb of copper, US$1,300 per ounce of gold, US$20 per ounce of silver, US$9.00 per lb of
molybdenum and assumed recoveries of 89% for copper, 70% for gold, 75% for silver, and 60% for molybdenum. |
All of the work outlined above is being funded by Daewoo Minerals Canada, in a deal finalized earlier this year (See
NR-2016-03), whereby Daewoo will earn a 5% project interest by paying Serengeti $400,000 (paid) and spending $800,000 on the
project in the first year. Daewoo may earn an additional 30% interest in the project by electing on or before March 6, 2017, to
spend an additional $7 million over the following two years for aggregate expenditures of $8.2 million to earn a 35% project
interest. Serengeti remains as project operator and is entitled to charge a 10% operator fee on expenditures beyond the initial
$1.2 million. Serengeti is entitled to an NSR royalty if its project interest is diluted below 50% and also retains the right to
enter into precious metal streaming transactions subject to certain off-take rights to Daewoo.
Independent Consultants
The current resource estimate was completed by SRK Consulting (Canada) Inc., of Vancouver British Columbia under the direction
of Marek Nowak PEng., an independent Qualified Person as defined by N.I. 43-101. Chad Yuhaz, PGeo., also of SRK and also a QP
completed the site visit to the Kwanika property and supervised the geological modeling input to the current study. CIMM
definitions and guidelines were followed for Mineral Resource estimation based on the parameters provided above and readers are
reminded that Mineral Resources do not have demonstrated economic viability and that Indicated Resources have a higher degree of
confidence than do Inferred Resources. A technical report providing details of the estimate will be filed on SEDAR (www.sedar.com) within 45 days.
Readers are further reminded that prior resource estimates published by Serengeti including those used in a Preliminary
Economic Assessment based on these estimates and dated March 4, 2013, and filed on SEDAR, are now superseded and should no longer
be relied upon.
About Serengeti Resources Inc.
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 in partnership with Daewoo Minerals
Canada and exploring its extensive portfolio of properties in the highly prospective Quesnel Trough of British Columbia. A
number of these other projects are available for option or joint venture and additional information can be found on the Company's
website at www.serengetiresources.com.
Quality Assurance/Quality Control
Sample preparation and analyses for 2016 drill holes incorporated into this study were completed at Activation Laboratories
Ltd. (Actlabs) ISO/IEC 17025 accredited laboratory in Kamloops, BC, or Ancaster, ON. Prior year's sample analysis was
conducted at Acme Analytical Laboratories Ltd (now Bureau Veritas Commodities Canada Ltd.) of Vancouver, BC. A comprehensive
quality assurance/quality control program including duplicate samples, blanks and standards formed part of Serengeti's sampling
protocol in addition to the laboratory's quality assurance programs. 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 and CEO of Serengeti Resources Inc.
ON BEHALF OF THE BOARD
David W. Moore, P. Geo., President, CEO and Director
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 as well as a comprehensive list of risk factors 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. Forward-looking statements are based on the
estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update
forward-looking statements should conditions or our estimates change, other than as required by law and readers are further
advised not to place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of
this release.