Serengeti Resources Inc.
TSX VENTURE : SIR

Serengeti Resources Inc.

November 17, 2009 08:31 ET

Serengeti Intersects 0.66% Copper Equivalent over 124 meters, Significantly Expands Potential at South Zone at Kwanika

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2009) - Serengeti Resources Inc. (TSX VENTURE:SIR) is pleased to report on the final three holes from the South Zone on the Company's Kwanika property in British Columbia. Two of the three current holes tested what is now recognized as a favourable structure along the west side of the South Zone at Kwanika. Drilling to date here has outlined a well mineralized zone along 350 meters of strike and down to 500 meters in depth grading 0.41% copper, 0.09 g/t gold, 2.1 g/t silver, 0.022% molybdenum (0.64% copper-equivalent) over an average intercept of 126.6 meters in seven holes. Importantly, the mineralization along the West Fault remains completely open on strike to the north and south with a potential target length in excess of 2.3 kilometers.

Kwanika Drill Holes K-09-138 to K-09-140 Significant Results
Hole From
(m)
To
(m)
Interval (m) Copper % Gold
g/t
Silver
g/t
Mo
%
Copper Eq* % Orientation (dip/az)
K-138 26.0 52.4 26.5 0.44 0.04 2.5 0.006 0.53 290°/75°
76.6 166.5 90.0 0.25 0.05 1.3 0.006 0.33
Incl. 76.6 98.0 21.5 0.42 0.08 2.3 0.006 0.53
437.0 451.0 14.0 0.20 0.01 0.5 0.009 0.27
497.0 512.8 15.8 0.33 0.02 1.5 0.001 0.36
K-139 72.6 114.5 41.9 0.23 0.15 3.2 0.002 0.36 268°/60°
149.0 171.0 22.0 0.20 0.23 2.3 0.005 0.39
356.0 362.0 6.0 0.51 0.35 3.0 0.001 0.75
419.0 553.5 134.6 0.33 0.05 1.9 0.018 0.50
Incl. 419.0 435.0 16.1 0.65 0.06 4.4 0.010 0.80
And 457.0 469.5 12.5 0.85 0.09 4.6 0.013 1.04
And 536.0 553.5 17.5 0.59 0.07 3.3 0.041 0.95
K-140 28.0 64.0 36.0 0.16 0.10 1.2 0.009 0.29 252°/65°
236.0 397.0 161.0 0.40 0.03 1.5 0.018 0.56
Incl. 273.0 397.0 124.0 0.47 0.02 1.9 0.023 0.66
Incl. 339.0 385.0 46.0 0.62 0.04 2.7 0.044 0.97

*Copper-equivalent calculation uses metal prices of US$1.75/lb for copper, US$12/lb for molybdenum, US$700/oz for gold and US$12.50/oz for silver and assumes metallurgical recoveries and net smelter returns of 100%. Copper (Cu) EQ = Cu% + (Mo% x 12/1.75) + (Au g/t x 12.86/22.06) + (Ag g/t x 0.23/22.06).

"We are extremely pleased with the results from the South Zone drilling at Kwanika this year," stated President and CEO, David Moore. "These results, in conjunction with intercepts in our prior drilling, plus the historical resource at the South Zone, define an altered and variably mineralized corridor measuring some 500 meters in width, down to 500 meters in depth along 2.3 kilometers in length. Within this corridor, our 2009 drilling has identified a higher grade mineralized structure along the west side of the South zone (see following table) referred to as the West Fault with current known dimensions of 350 by 500 meters by approximately 100 meters in width. The West Fault mineralization remains completely open on strike to the north and south and furthermore, based on geological and geophysical modeling, we now think that similar favourable conditions may exist in a mirror-image along the east side of the favorable corridor. This year's work has shown that there is excellent potential to develop a significant copper-molybdenum-silver-gold resource at the South Zone (see attached map and cross section) that could add materially to the already defined Central Zone copper-gold resource at Kwanika. We are now proceeding with resource estimation on the South Zone and are planning substantial additional drilling to further test this attractive zone in 2010," explained Moore.

Summary of West Fault Mineralized Intercepts
Hole Interval (m) Copper % Gold
(g/t)
Silver
(g/t)
Moly
%
Copper Eq
%
K-110 113.0 0.34 0.11 2.1 0.012 0.51
K-124 242.5 0.41 0.05 2.1 0.018 0.58
K-126 150.3 0.51 0.14 2.7 0.024 0.78
K-127 56.6 0.33 0.09 2.2 0.030 0.61
K-136 65.5 0.43 0.02 2.0 0.049 0.80
K-139 134.6 0.33 0.05 1.9 0.018 0.50
K-140 124.0 0.47 0.02 1.9 0.023 0.66
Average 126.6 0.41 0.09 2.1 0.022 0.64

Two of the current holes targeted what is now recognized as the West Fault and encountered strong mineralization. K-140, the most northerly test to date of this target, intersected 0.47% copper, 0.02 g/t gold, 1.9 g/t silver, 0.023% molybdenum (0.66% copper-equivalent) over 124 meters. K-139, collared 350 meters to the south of K-140 and the most southerly test of the West Fault intersected 0.33% copper, 0.05 g/t gold, 1.9 g/t silver, 0.018% molybdenum (0.50% copper-equivalent) over 134.6 meters. All three holes from the current release also encountered near surface mineralization. For instance, K-138, which was not targeted at the West Fault, intersected two separate intervals: 26.5 meters and 21.5 meters both grading 0.53% copper-equivalent within the top 100 meters of the hole and 250 meters east of the fault.

Drilling is now completed for the season at Kwanika and on three other of Serengeti's properties in the region. A total of 9,924 meters were drilled in 33 holes in this year's program. Drill sections and a 3D model for Kwanika can be viewed at www.corebox.net/properties/kwanika/ or by following a link on the Company's website at www.serengetiresources.com. Results are still pending for the 100% owned Choo property as well as the Mil QUEST joint venture property and will be released when available.

To view the maps accompanying this release please visit the following link: http://media3.marketwire.com/docs/SereMaps.pdf

About Serengeti

Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid track record of exploration success. The Company is focused on the advancement of its Kwanika copper-gold project which contains an Indicated Resource of 183 million tonnes grading 0.29% copper, 0.28 g/t gold at a 0.25% copper equivalent cutoff. This includes a higher grade zone of 75 million tonnes grading 0.41% copper and 0.42 g/t gold at a 0.4% copper-equivalent cutoff. Serengeti also continues to explore for additional gold and copper deposits on its extensive portfolio of properties in the highly prospective Quesnel Trough of British Columbia. Additional information on Serengeti's projects can be found on the Company's website at www.serengetiresources.com Serengeti is well funded to advance its projects with a current working capital position of approximately $8.6 million which includes $2.2 million receivable from the B.C. government's METC program. Serengeti has 45.8 million shares issued and outstanding or 51.3 million shares on a fully diluted basis.

Quality Assurance/Quality Control

Sample analysis for the current program was completed at Acme Analytical Laboratories Ltd in Vancouver, BC. A comprehensive quality assurance/quality control program including duplicate samples, blanks and standards formed part of the sampling protocol in addition to the laboratory's own quality assurance program. Individual copper values exceeding 2000 ppm, molybdenum values exceeding 1000 ppm, and gold values exceeding 100 ppb were assayed and these intervals combined with geochemical determinations on the balance of the samples, with all results reported in per cent and grams per tonne respectively. This procedure will generally result in an understatement of the average grades. The field program was supervised by Serengeti Resources Inc. staff and the technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the Company's qualified person, David W. Moore, P. Geo., President and CEO of Serengeti Resources Inc.

Cautionary Statement

This document contains "forward-looking statements" within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company's documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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