Kwanika drill hole ignites Serengeti stock

Vancouver – Serengeti Resources (SIR-V) says drilling on its Kwanika property in north central British Columbia has confirmed the existence of a potentially rich copper-gold zone, that warrants further exploration in the coming months.

News of the find sent the junior’s stock up 23 cents or 40 % to 82 cents on the TSX Venture Exchange, January 9, in active trading after exploration results were released.

The stock was ignited by a single drill hole which coughed up an 111 meter intersection averaging 0.69% copper and 0.54 grams gold per tonne in a sulphide zone. A higher grade zone near the base of the same drill intersection returned 1.49% copper and 1.90 grams gold over 22 metres.

Hole K-06-9 is one of five holes, which the Vancouver company drilled last November on wholly-owned ground, which is located between the well-known Mt. Milligan property and Kemess copper-gold mines. Kwanika is accessible by road from Fort St. James.

“This is a significant result and represents one of the best holes drilled on a greenfields porphyry copper-gold discovery in British Columbia in a long time,” said Serengeti chief executive officer David Moore.

Mr. Moore and Serengeti chief geologist Myron Ostatenko are both veterans of Teck Cominco’s global exploration operations and have assembled a large property position covering 770 square kilometres in 14 separate claim blocks.

K-06-9 was drilled near the centre of a large induced polarization geophysical anomaly which indicates that the company is probing a sizeable sulphide system measuring 2,500 metres in length and up to 700 metres wide.

K-06-9 was located to the south of the other four holes.

The company is planning a follow-up drilling program that it wants to start next month. But with about $600,000 in the treasury, it will need to do a financing to fund that program. Mr. Moore said he doesn’t think funding will be a problem. “We have very strong interest from the financing community,” he said.