Serengeti jumps on hot hole at Kwanika (April 07, 2008)

VANCOUVER — Serengeti Resources (SIR-V, SGRNF-O) pulled a long, strong intercept from its Kwanika copper-gold-silver project in central British Columbia and investors took note, boosting the company’s share price 138%.

Described by Serengeti president and CEO David Moore as “truly exceptional,” hole 62 returned 610 metres grading 0.74% copper, 0.78 gram gold per tonne and 1.8 grams silver starting 131 metres below surface.

On the news, Serengeti gained 80 or 136% to close at $1.37 on a record 8.9 million shares traded. The company has a 52-week trading range of 55-$4.80 and has 44.2 million shares issued.

The result came from the southern side of the growing system at Kwanika. Two drill programs in 2007 outlined a mineralized zone extending 750 metres along strike, across 200 metres width, and to depths reaching 500 metres. The results from hole 62 now show the zone reaches deeper.

The hole was drilled beneath and sub-parallel to the westward-dipping sedimentary basin contact that overlaps the mineralized zone along its western edge. A 75.4-metre interval grading 2.28% copper, 1.92 grams gold and 4.2 grams silver, from the upper half of the hole, is supergene-enriched and contains significant chalcocite. From the lower half of the hole, a 30-metre interval grading 1.47% copper, 1.93 grams gold and 3 grams silver is primary mineralization consisting of strong quartz-stockworked monzonite with significant chalcopyrite and minor bornite.

In all, Serengeti released results from the first five holes of the 2008 drill program. Holes 59 and 60 tested the western side of the zone and both intercepted a supergene enrichment layer. Hole 59 returned 110 metres grading 0.5% copper, 0.39 gram gold and 1.6 grams silver from 351 metres depth, including a 29- metresupergene layer grading 1.21% copper, 1.09 grams gold and 3.1 grams silver. Hole 60 cut 129.4 metres grading 0.49% copper, 0.5 gram gold, and 1.3 grams silver, including 29 metres of supergene enrichment grading 1.19% copper, 1.25 grams gold and 3.2 grams silver.

Serengeti has drilled four more holes in the southern part of the main zone and assay results are pending. The company is advancing a 15,000-metre drill program at Kwanika with two drill rigs.

In 2005 and 2006, Serengeti conducted airborne and ground geophysics on the property. To date the company has explored only 10% of the large induced-polarization anomaly outlined by that work.

Kwanika is in the northern part of the Quesnel Trough, a porphyry copper-gold belt that extends for several hundred kilometres, running north-south, in central B. C. The project itself sits between Northgate Minerals’ (NGX-T, NGX-X) Kemess copper-gold mine and Terrane Metals’ (TRX-V, TRXOF-O) Mt. Milligan copper-gold deposit.

Serengeti owns Kwanika outright. The 94-sq.-km property is road accessible from Fort St. James, B. C.