Resource World Magazine

34 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 7 Serengeti Resources: new Kwanika resource estimate improves economics by Jennifer S. getsinger, phD, pgeo SERENGETI RESOuRCES INC. [SIR-TSXV] recently delivered a new resource estimate for its Kwanika copper-gold project in north-central British Columbia. The resource estimate was based on a combination of analyses from recent drill holes as well as its extensive database from previous drilling, using a revised model with refined geological constraints. The new independent esti- mate was prepared by SRK Consulting. 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 in the indicated category. This represents 609,000,000 lbs copper, 1,020,000 oz gold and 2,650,000 oz silver. In the inferred category, there are 118,500,000 lbs copper 140,000 oz gold and 610,000 oz silver (pit constrained) plus 39,800,000 lbs copper, 40,000 oz gold and 170,000 oz silver (underground). The estimate was based on 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 funded by partner, Daewoo Minerals Canada. According to an interview with David Moore, CEO of Serengeti, the Kwanika discovery was somewhat unusual in that its main mineralized zones were identified primarily by using geophysical surveys, although most of the company's properties were chosen on the basis of previous field indications. Moore and Myron Osatenko won a prospecting award in 2010 for the discov- ery at Kwanika. In a rather unique arrangement, Daewoo Minerals Canada (sub- sidiary of South Korean giant Posco) paid $1.2 million for only a 5% interest in 2016 and has an option to spend a subsequent $7 million for a further 30% interest over the next two years. Daewoo was of the view that Kwanika was a large deposit whose grade and metal content had, up until now, been underestimated. Target zones identified by geophysical methods such as induced polarization suggest more "room to grow." The property is favourably located geologically in a prolific trend of copper-gold mines (Kemess, New Afton, Mt. Milligan, Red Chris, Mt. Polley) mainly in the Quesnel Terrane of BC, a friendly jurisdiction with low power costs. A highlight from the 2016 drill program, which targeted the Central Zone of a mineralized porphyritic monzonite intru- sive into Takla Group andesitic rocks, was drill hole K-177 that returned 438.4 metres grading 0.71% copper, 0.83 g/t gold, and 2.0 g/t silver, including 234 metres of 1.18% copper, 1.3 g/t gold, and 3.2 g/t silver, as well as 3.6 metres of 19.0% copper, 6.52 g/t gold, and 36.7 g/t silver. Mineralization largely consists of dis- seminated and stockwork sulphides with chalcopyrite, bornite (with associated gold), and pyrite. Another unusual aspect of Kwanika is the presence of a super- gene oxidized zone enriched in native copper and an underlying chalcocite-bearing zone, not eroded away by glaciation because it is covered by Cretaceous and younger sediments. "We are very pleased with the results of the recent resource update, which I believe will significantly improve the economics of the Kwanika Project," said Moore. "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 vir- tually 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," he said. In addition to Kwanika, Serengeti maintains a portfolio of about a dozen prospective properties in the Quesnel and Stikine terranes of BC, most of them owned 100%, such as the Jewel mas- sive sulphide project (25 km northeast of Kwanika) and the UDS property, located within sight of the Kemess open pit, hosting a high probability (as indicated by IP) of a new sulphide system similar to those at Kemess. This is the traditional area of the Takla Lake First Nation, a member of the Carrier-Sekani Tribal Council. The Takla Lake band provides workers for Serengeti's exploration projects, and an exploration access agreement between Serengeti and Takla was signed in 2010. The recent rise in the price of copper to over US $2.50/lb bodes well for Kwanika Project economics. n posco Daewoo Geologists Ji-Su Go, Kyu-Youl Sung, and Serengeti Geologist Cole Godfrey viewing drill core during the 2016 Drilling Campaign. photo courtesy Serengeti resources Inc. miNiN g

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