Serengeti sees sell-off on latest intercepts

Vancouver — The final batch of assays from Serengeti Resources’ (SIR-V, SGRNF-O) spring 2007 drill campaign on its Kwanika project prompted a 35% drop in the company’s share price as investors sold off the stock looking to capture strong recent gains.

Seven out of the 11 holes cut wide intervals of significant copper and gold mineralization on the porphyry project, located in the Quesnel Trough of north-central B.C. Results include:

* in hole 18, drilled towards the west at minus 75, 158.3 metres (from 38.4 metres down-hole depth) averaging 0.53% copper and 0.43 gram gold per tonne, including a 12-metre portion running 1.71% copper and 0.54 gram gold;

* in hole 20, aimed to the east and drilled at minus 60 from the same collar as earlier hole 15, 107.7 metres (from 38 metres down-hole) of 0.76% copper and 0.91 gram gold, including a higher-grade bornite- mineralized upper section returning 0.95% copper and 1.26 grams gold over 66.1 metres; and

* in hole 24, drilled to the east at a minus 65 dip, 312.1 metres (from 55.9 metres down-hole) running 0.27% copper and 0.39 gram gold along a monzonite-andesite contact zone.

“We continue to intercept long intervals of good grade porphyry-style copper-gold mineralization and this system continues to remain open to the north, south and at depth,” said Serengeti president and CEO David Moore.

Drilling indicates a mineralized 200-metre-wide zone with a strike length of 750 metres and a depth (from near surface) of 500 metres, he continued.

Serengeti recently begun a 45-hole, 18,000-metre drill program at Kwanika.

The company’s shares closed down $1.46 on the results at $2.69 apiece on trading volume of almost 2.9 million. Given its 43.8 million shares outstanding, the company posts a $118-million market capitalization. The stock has a 52-week trading range of 15-$4.80.