TSX-V: SIR

Projects

Overview

Property

High Potential Property that may host the eastern fault offset of the Kemess East deposit. Under option from Finlay Minerals Ltd. and Electrum Resources Corporation. Total land area: 4,498 hectares.

Location 

Omineca Mining Division of north-central British Columbia, Canada. One kilometre north of Centerra Gold’s Kemess East deposit.

Target Summary

Historical magnetic, radiometric and induced-polarization (IP) surveys, soil and rock geochemical surveys and shallow diamond drilling outline several notable targets for the discovery of a Cu-Au porphyry-style mineral system. The Kemess East Offset Target lies one kilometre north of the Kemess East deposit, along the east side of the Kemess East Offset Fault. Serengeti’s adjacent 100% owned UDS property hosts a quartz-sericite-pyrite phyllic alteration zone which was the focus of drilling in 2017 and is interpreted to vector toward the Atty property.

Ownership

Option agreement with Finlay Minerals Ltd. and Electrum Resources Corporation.

Project Summary

The Atty property lies within the Toodoggone Mining District, north and immediately adjacent to Centerra Gold’s Kemess property which hosts the past-producing Kemess South open pit Cu-Au mine and the Kemess Underground (KUG) and Kemess East (KE) deposits, the latter of which was discovered between 2007 and 2015. AuRico Metals developed KUG through the Environmental Assessment stage and completed a preliminary economic assessment (PEA) at KE. In late 2017, Centerra Gold Inc. acquired AuRico Metals for C$310 million or C$1.80 per share.

Atty has not been the focus of any significant exploration since before Kemess East was discovered. The Atty property is underlain by Hazelton and Takla Group volcanic rocks and intrusive rocks of the Black Lake Suite (BLS). The BLS hosts the Kemess Cu-Au deposits. Kemess East is cut off on the eastern side by the Kemess East Offset Fault, which is believed to have transposed a portion of the deposit, which Serengeti's geologists call the Kemess East Offset Target (KEOT), toward the north. The KEOT target, Serengeti's main regional exploration focus, may occur in the vicinity of the Atty Gossan and Kem showings, as well as the anomalies outlined in the 2007 Titan IP data. Work completed by Serengeti in 2018 confirmed the presence of the KEOT through ground IP surveys, detailed surface mapping and relogging and geochemical analysis of historical drill core.

Other main targets at Atty include Targets B, C and D  (see Atty Option image below) which were discovered and/or refined during the 2018 IP and mapping program and represent compelling drill targets. 

Immediately north of the KEOT, the Atty Gossan Zone, an earlier geochemical and IP target, was drilled by Finlay Minerals in 2004. Seven drill holes ranging up to 300m deep intersected Takla volcanics with local disseminated pyrite, magnetite and weak, sporadic copper and zinc mineralization. However, relogging of ATT-04-07 in 2018, the hole closest to the KEOT, identified an increasing density of sheeted magnetite-chalcopyrite veinlets with depth that hadn’t been appreciated by earlier workers. 2018 assays of ATT-04-07 shows the hole intersected 36.1m grading 0.1% Cu and 0.11 g/t Au.

Based upon the deep drilling at Kemess East and revaluation of Induced-Polarization (IP) data, the 2004 drilling appears to have been too shallow and possibly peripheral and north of the intrusive mineralizing source. The new KEOT lies between the 2004 drilling area and the claim boundary with Centerra Gold.

2019 Exploration 

Drilling

In the 2019 exploration season Serengeti completed approximately 30 line-km of IP geophysics and a follow up 6-hole NQ diamond drilling program (2,318m).

  • Three holes tested the Kemess East Offset Target (Target A) (AT-19-08, AT-19-12, AT-19-13) with 2 of them directly testing the 2007 Titan IP target.
  • Two holes were drilled in the Attychelley Valley area (Valley Target/E) to follow up on a strong sub-horizontal IP response and favourable magnetic signature similar to that seen at the Kemess Underground – Kemess Offset – Kemess East trend.
  • A sixth hole (AT-19-11) was drilled in the Boundary Zone area (Boundary Target/D) to test below encouraging Au and Ag surface sampling results from historic sampling and a coincident IP signature discovered during the 2019 IP program.

As of September 16, 2019 results were pending and will be released when available.

Geophysics

The 2019 Atty work included 29.8 line-km of IP in 9 lines.

  • Three lines were completed in the Attychelley Valley area (Valley Target/E)) which was identified as prospective based on mapping and analysis of airborne geophysics.
  • Three east–west directed lines were completed across the Atty–UDS boundary (Boundary Target/D) to see if an IP response existed below strong Au and Ag surface sampling results in the area of known MINFILE occurrences. Serengeti recently added an additional 6 line-km of IP at the Boundary Target to tighten line spacing over an area identified by drilling as being prospective.  

The total 2019 exploration expenditures at Atty should satisfy the Year 2 commitments outlined in the Option Agreement signed between Finlay Minerals Ltd./Electrum Resources Corp. and Serengeti in early 2018 (see Serengeti press release dated March 4th, 2018).

The regulators recently granted a multi-year, area-based (MYAB) permit, covering the period through December 2021, for up to 10,000m of drilling from 20 sites. In addition, an Exploration Agreement has been signed with the Kwadacha First Nation and the Tsay Keh Dene Nation in support of the exploration program. As part of the consideration for signing this agreement, Serengeti has agreed to issue to each of the Nations, 25,000 shares of Serengeti, which issuance is subject to approval by the TSX-Venture Exchange.

Drill plan and IP line section for the 2019 drill program at Atty.

Location and Infrastructure

The Atty property is located 8km north of the Kemess South mining camp which includes a large facility with bunkhouses, mill site, airstrip, all weather road and power line from Mackenzie B.C. The property is accessed via the Omineca Resource Access Road and tributaries, or by helicopter from Kemess.

History

1929: D.W. Chisholm ‐ staked a claim near the western boundary of the Atty Claim Group.

1969: Kennco Explorations (Western) Ltd. – small soil geochemical program in area of AT 1 and 2 claims.

2004: Finlay Minerals Ltd. ‐ seven-hole (1,653m) diamond drilling program on the Atty Gossan Zone, soil – IP surveys on Awesome Showing, prospecting‐sampling in the Wrich area.

2007: Finlay Minerals Ltd. – Titan 24 IP survey on a 2.4km east‐west line near south property boundary.

2007: First drilling program at Kemess East (Northgate Minerals) identifies porphyry system.

2013: Finlay Minerals Ltd. – prospecting and sampling along new access road constructed by AuRico Gold to connect the Kemess Underground and East deposits. Ridge top prospected south of the Titan IP survey line in area of small gossan. (Assessment Report – 34407)

2013: Continued exploration at Kemess East results in discovery of significant mineralized system (AuRico Gold); AuRico Gold continues to advance Kemess Underground.

2015: Finlay Minerals Ltd. – Prospecting and Geochemical sampling (Assessment Report – 35865)

2016: Finlay Minerals Ltd. – LiDAR Survey (Assessment Report – 36672)

2017: Maiden PEA published on Kemess East; Kemess Underground receives EA approval, enters permitting (AuRico Metals); AuRico Metals purchased by Centerra Gold.

2018: Serengeti Resources Inc. – options Atty Property from Finlay Minerals; completes 21 line-km of IP, 1:5,000 scale geological mapping, relogging/resampling 2004 drill core, develops Kemess East Offset Target and others.

2019: Serengeti completes a limited drill program of 6 NQ holes (2,318m), and 9 IP lines totalling approximately 30 line km..

Property geology

Mesozoic arc-related volcanic rocks comprising the eastern margin of the Intermontane Belt underlie the district over an area measuring 100 by 40 kilometres. The oldest rocks in the belt are Permian Asitka Group limestones and tuffs. Lower – Middle Jurassic Hazelton Group extrusive volcanic and sedimentary units unconformably overlie Takla Group units below; and overlapping all assemblages to the west are upper Cretaceous Sustut Group sediments. Intrusive rocks are prevalent in the area and have been categorized as late Triassic Alaskan-type ultramafics such as pyroxene diorite, hornblende gabbro and pyroxenite composition. Economically more significant are early Jurassic intrusives of the Black Lake Suite, which are represented by granodiorite, hornblende diorite, pyroxene quartz-diorite, quartz-monzonite and quartz monzodiorite and outcrop on the ridge south of the property.

Local to the Atty area are the Kemess East Offset, Duncan, Saunders and Finlay Faults, which trend north-northwest and display normal block faulted movement. Thrust faulting interpreted as Eocene or younger is also present in the area with displacement believed to be towards the northeast affecting rocks from the Takla up to Sustut sediments.

Other notable target areas within the Atty and UDS combined land package include the Awesome, Kem, Attycelley, Fog and Mess showings, all of which display high-level alteration and polymetallic mineralization, characteristics typically associated with porphyry systems. Furthermore, Serengeti’s 2017 UDS drilling campaign resulted in the identification of an intense quartz-sericite-pyrite alteration zone open to the northwest and potentially extending onto the Atty property, now part of the combined land package.

Photos

© 2019 Serengeti Resources Inc.
All rights reserved.

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