Serengeti sell-off on latest Kwanika 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 companys 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 Quesnel Trough of north-central B.C. Results include:

• Hole K-07-18 Drilled towards the west at minus 75 degrees, it intersected 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;
• Hole K-07-20 Aimed to the east and drilled at minus 60 degrees from the same collar as earlier hole K-07-15, it cut 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
• Hole K-07-24 Also drilled to the east but at a minus 65 degree dip, it returned 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,” stated Serengeti president and CEO, David Moore. “Drilling to date at Kwanika indicates a mineralized zone extending from near surface down to 500 meter depth in the deepest hole, with a width in the order of 200 meters along the central section and a 750 meter strike length.

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

Shares of Serengeti closed down $1.46 on the July 10th results to $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.