Serengeti acquires Croy from Northgate

Vancouver — A recent agreement with Northgate Minerals (NGX-T) gives Serengeti Resources (SIR-V) the rights to acquire a copper-gold-molybdenum property adjacent, and similar to, its Bloom property in northwestern British Columbia.

Serengeti inked a deal to acquire the Croy property from Northgate in return for 400,000 of its shares and a 0.75% net smelter royalty on any molybdenum produced from the property.

Serengeti had sought the 64-sq.-km Croy property to cover the balance of two large copper-gold soil/rock geochemical anomalies straddling the boundary with Bloom.

Croy covers a separate gold target and the Davie Creek molybdenum prospect, which gives the company a total of four drill-worthy exploration targets.

The combined Croy-Bloom property is situated about 80 km south of Northgate’s producing Kemess copper-gold mine and is accessible by logging roads, or by helicopter.

Teck, now named Teck Cominco (TEK-T), explored the Croy-Bloom property from the late 1970s through the early 1990s and four porphyry targets were identified over that span, the best being in the Bloom cirque area. A copper-gold soil/rock geochemical anomaly was outlined measuring 1.8 by 2.6 km, associated with highly fractured and altered diorite that shows widespread copper mineralization.

In addition to highly anomalous gold and copper values, sampling returned strongly anomalous cobalt and zinc values.

Serengeti notes that this priority target is associated with, or is on the edge of, strong aeromagnetic and radiometric anomalies identified from a survey flown by Northgate. These features are consistent with a shallow, buried porphyry copper-gold system.

A second copper-gold target, identified 2 km east of the Bloom cirque, is connected to the first target by a copper-gold soil anomaly and several outcrops of pyritic diorite. The soil anomaly measures at least 2 km long and 0.5 km wide and is largely covered by overburden. It also sits on the edge of an aeromagnetic high that is coincident with an induced-polarization anomaly.

The second copper-gold target carries peripheral veins that returned high-grade copper and gold values from grab samples, notably 3% copper and 42.5 grams gold per tonne, 6.4% copper and 32.2 grams gold, and 2.7% copper and 37 grams gold.

Both main copper-gold targets have not yet been drill-tested. The high-grade gold and copper veins (frequently found adjacent to large porphyry copper-gold systems) have yet to be drilled.

The fourth target, dubbed Raven, consists of a rusty, pyritic zone of diorite and andesite associated with geochemical (gold-in-soils) and geophysical anomalies. Raven has never been drilled.

Davie Creek covers a porphyry molybdenum system that was previously tested by six holes.

Results are available only from the three lowest-grade holes, which averaged 0.026% moly over 153 metres, 0.022% moly over 232 metres, and 0.026% moly over 118 metres.

The zone is open along strike and to depth.

The goal at Davie Creek is to outline a bulk-tonnage system similar to other moly mines and deposits in the province, including Endako, Kitsault Lake, Boss Mountain and Adanac. The most famous of these is Endako, where reserves of about 182 million tonnes averaged 0.087% moly.