Serengeti Resources Inc.
TSX VENTURE : SIR

Serengeti Resources Inc.

May 31, 2005 08:30 ET

Serengeti Resources Acquires Croy Copper-Gold-Molybdenum Property from Northgate Minerals

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 31, 2005) - David W. Moore, President and CEO of Serengeti Resources Inc. (TSX VENTURE:SIR), is pleased to announce the acquisition of a 100% interest in the Croy porphyry copper-gold and molybdenum property from Northgate Minerals Corporation for 400,000 shares of Serengeti and a 0.75% NSR on any molybdenum production achieved from the property. This transaction is subject to regulatory acceptance. The 400,000 shares will be subject to a four month hold period.

The Croy property is adjacent to Serengeti's Bloom property (see News Release November 18, 2004) and has been acquired to cover the balance of two large copper-gold soil/rock geochemical anomalies that previously straddled the Bloom-Croy property boundary, as well as a separate gold target and the Davie Creek molybdenum prospect. The property is located 80 km south of the Kemess Mine in northern British Columbia and is accessible by helicopter and or by logging roads from the Omineca Mining Road. The combined property now totals 6,368 hectares.

"We are particularly pleased with this acquisition that strongly complements one of our best copper-gold properties and look forward to advancing these attractive targets," stated David Moore, President of Serengeti. "The Raven gold target and Davie Creek molybdenum zone also add materially to the prospectivity of the ground."

Previous work on the Croy-Bloom property by Teck Corporation between 1979-82 and 1990-91 and by Northgate in 2002-2003 identified four attractive porphyry targets. The best copper-gold target is in the Bloom cirque area where a 1.8km by 1.6 km copper-gold soil/rock geochemical anomaly is associated with highly fractured and altered diorite that shows widespread copper mineralization. Anomalous soil/talus fine geochemical values range from 300 to 9,100ppm copper and from 30 to 2,080ppb gold. The average of 151 rock samples collected from the target area is 2,710ppm copper and 230ppb gold. Strongly anomalous cobalt and zinc values are also present. This zone is associated with, or on the edge of, strong aeromagnetic and radiometric anomalies from a survey flown by Northgate. These features are consistent with a shallowly buried porphyry copper-gold system.

The second copper-gold target lies 2km west of Bloom cirque and is connected to it by a copper-gold soil anomaly and by several outcrops of pyritic diorite. The zone consists of a copper and, in part gold soil geochemical anomaly that is at least 2km long by 0.5km wide and is largely covered by overburden. Anomalous soil values range from 100 to 1,350ppm copper and 30 to 200 ppb gold. This anomaly is on the edge of an aeromagnetic high and is coincident with a moderate to strong IP chargeability anomaly. In addition, the zone carries peripheral veins up to 1.5m wide in three areas, that show good grade copper and gold values in grab samples. Examples include 3.05%Cu, 42.5g/tAu; 6.4%Cu, 32.2g/tAu; and 2.7%Cu, 37.0g/tAu. Such high grade gold and copper veins are often found adjacent to big porphyry copper-gold systems. No drilling has been done on either of the copper-gold zones and in the case of Bloom cirque target neither has IP geophysics.

The third target (Raven) is in the northern part of the property and consists of a rusty, pyritic zone of diorite and andesite showing a 1,000m by 400m zone of 100 to 1,340ppb gold in soils coincident with a moderate IP chargeability anomaly that is greater than 2,000m long by 1,200m wide. Grab rock samples collected from the edge of this zone run 350, 360 and 780ppb gold. Prior drilling is limited to three diamond drill holes on a copper target just to the southeast of the gold soil anomaly and did not effectively test the gold target. One of these holes intersected 0.04%Cu and 20ppb to 120ppbAu over 146m associated with strong propylitic alteration.

The fourth target is located in the southwestern part of the property and is a porphyry molybdenum system referred to as the Davie Creek prospect. The target consists of a greater than 2,100m by 400m molybdenum+/-tungsten soil anomaly, centered on a young quartz monzonite intrusion. The zone is coincident with a strong IP chargeability anomaly, measuring 2,300m by 1000m, that was defined subsequent to the drilling. The central part of the soil anomaly was tested by six drill holes with assays for only the first three, apparently lower grade holes reported. These average 0.026%Mo over 153m, 0.022%Mo over 232m and 0.026%Mo over 118m. Partial geochemical analyses conducted subsequently by Northgate Minerals on hole 82-6 returned 0.054%Mo over 157m. Assays and logs are not currently available for holes 81-4 and 81-5 reported by workers at the time to be the best holes drilled within the Mo system. Mineralization consists of molybdenite, scheelite and pyrite in quartz stockwork associated with strong secondary potassium feldspar alteration. The zone is open along strike and to depth. The target at Davie Creek is for a bulk tonnage system similar to other British Columbia molybdenum mines and deposits which include the Endako Mine (182 Mt at 0.087%Mo), Kitsault Lake (104 Mt at 0.11%Mo), Boss Mountain (6.7 Mt at 0.13%Mo) and Adanac (152 Mt at 0.063%Mo).

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements 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.

Serengeti is a mineral exploration company under experienced new management who bring a solid track record of discovery. Serengeti is focused on discovery of copper-gold and gold-silver deposits in British Columbia, especially in the highly prospective Quesnel Trough and Stewart mining camps.

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

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