Serengeti expands Kwanika (July 31, 2008)

Vancouver – With the release of 12 more drill results from a 59-hole 2008 campaign at its Kwanika property, about 250 km east of Smithers, B.C., Serengeti Resources‘ (SIR-V) president and CEO David Moore says the company continues to expand the western and northern extent of its central copper and gold zone and has confirmed a near surface copper and molybdenum zone in the south.

A half dozen step-out holes on the western edge of the central zone, where the company has so far defined a mineralized area about 400 by 500 metres to a depth of over 600 metres, returned fairly long, modest-grade, intercepts.Starting at 417 metres, hole 93 returned 250 metres grading 0.48% copper, 0.57 gram gold per tonne and 1.9 grams silver per tonne. The upper boundary of the intercept included 87 metres grading 0.89% copper, 1.18 grams gold and 2.4 grams silver.

About 50 metres to the northwest, hole 96 hit another long intersection that included some higher grade results in its upper third. Overall it returned 347 metres grading 0.46% copper, 0.47 gram gold, 1.4 grams silver and 0.001% moly between 424 and 771 metres. Within that there was 66 metres grading 1.09% copper, 1.21 grams gold and 2.8 grams silver.

These holes show that the central zone, where earlier this spring hole 62 returned a whopping 610 metres grading 0.74% copper, 0.78 gram gold and 1.8 grams silver, is still open to the west.

Four holes drilled on the northern edge of this zone outlined a roughly 200-metre wide and 525-metre long, lower-grade extension. Hole 100, for example, cut 397 metres starting at 63 metres below surface grading 0.13% copper, 0.16 gram gold, 0.8 gram silver and 0.001% moly.

“If you follow that strike length, from top to bottom from the north to the southwest,” Moore says, “it’s really a boomerang-shaped zone that’s at least a kilometre long.” The better grades lie in a supergene enrichment zone in the upper boundary of the mineralized area where Serengeti finds chalcocite and native copper. The association between the higher-grade copper and gold and the supergene enrichment zone has captured copper players’ attention, he says.

Moore also notes that in the central zone drills are still bottoming in mineralization.

To the south, Serengeti has confirmed an IP anomaly as a near-surface, copper-moly zone. Hole 102 hit 119 metres grading 0.35% copper, 0.05 gram gold, 1.9 grams silver and 0.013% moly.Moore believes this copper-moly zone is probably a deeper, faulted offset of the central copper-gold zone and that it has a potential 1.6 km strike length.

Serengeti discovered the central copper-gold zone in 2006 when hole 9 punched through 111.1 metres grading 0.69% copper and 0.54 gram gold. That led to a $5.5 million private placement in February 2007. With the success of subsequent drilling that year, Serengeti arranged $20 million in bought-deal financing, money that has funded its drilling campaign at Kwanika.

When it hit the over 600 metre mineralized intercept earlier this winter, Moore says it revitalized investor interest in the company something which in today’s market has been especially difficult to accomplish. He also says the drill result put Serengeti “on the map of some pretty major companies.”

Moore expects to wrap up this year’s program in August and finish a resource calculation sometime before the New Year and a metallurgical study this fall. So far preliminary metallurgical work has returned positive results, he says.

In addition to drilling holes 121 and 122, Moore says Serengeti is currently in the midst of an environmental scoping study and is conducting water quality monitoring.

News of the results boosted Serengeti’s share price 1.5 to close at 44.5 on a volume of 400,000.