Kwanika is located in the northern Quesnel Trough, which hosts numerous porphyry copper-gold deposits and are accessible by road from the city of Fort St. James, British Columbia.
An advanced stage copper-gold project located near infrastructure in a politically stable jurisdiction. Kwanika’s resource estimate includes a high-grade, well defined domain within the Central Zone on the property, estimated to contain 57.7 million tonnes grading 0.48% copper and 0.55 g/t gold at a 0.4% copper equivalent cut-off. The resource estimate is based on a 122 drill holes totaling 57,454 metres drilled on the property by Serengeti between 2006 and 2016 and includes three holes drilled earlier this year and fully funded by partner Daewoo Minerals Canada.
Serengeti Resources Inc. 95%, Daewoo Minerals Canada 5%
Year 1: Initial 5% earn-in for $1.2M ($400,000 WC, $800,000 project expenditure - paid)
Year 2 & 3: Additional 30% earn-in, for additional $7M expenditure
SIR - operator plus 10% management fee (until 50% ownership)
SIR retains METC(30%) credits on qualifying expenditures on first $8.2M
SIR maintains right to enter into streaming transactions on all metals subject to DMC having certain off-take rights
* see NR16-03, April 6th, 2016 for full details
2016 Kwanika Mineral Resources Estimate
The independent resource estimate was completed by SRK Consulting (Canada) Inc., of Vancouver British Columbia. (see NR16-13, dated November 14, 2016)
MINERAL RESOURCE STATEMENT*& SENSITIVITY ANALYSIS, KWANIKA CENTRAL ZONE
(SRK Consulting, Effective November 1, 2016)
Kwanika Central Zone Resource
Sensitivity Analysis at Various Cu Eq Cut-off Grades of Central Zone
Kwanika South Zone Mineral Resource
* Pit constrained mineral resources are reported in relation to a conceptual Whittle pit shell and underground resources are reported within the area for potential underground development. Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All composites have been capped where appropriate.
** Pit constrained mineral resources are reported at a copper equivalent cut-off of 0.13% and underground resources are reported at 0.27%. The cut-offs are based on prices of US$3.00 per lb of copper, US$1,300 per ounce of gold, US$20 per ounce of silver, US$9.00 per lb of molybdenum and assumed recoveries of 89% for copper, 70% for gold, 75% for silver, and 60% for molybdenum.
Plans moving forward
The next step is to incorporate the results of this new resource estimate into a revised mine optimization and financial study for the project. The partners announced November 14, 2016, that Moose Mountain Technical Services had been engaged to carry out this work. The study is due for completion on or before March 1, 2017 with the objective of incorporating the results into a revised Preliminary Economic Assessment (PEA) and N.I. 43-101 Technical Report.
Location and Infrastructure
Kwanika represents an advanced stage copper-gold project located near infrastructure in a politically stable jurisdiction. Kwanika is located in the northern Quesnel Trough, which hosts numerous porphyry copper-gold deposits. The Kwanika claims are 9418 hectares in size and are accessible by road from the city of Fort St. James, British Columbia. A landmark access agreement was signed in August 2010 with the Takla Lake First Nation, which has provided First Nations’ support to the project. Excellent exploration potential on this large property indicates upside to discover additional deposits. (see FIGURE 2)
David Moore and Myron Osatenko in 2010 H.H. “Spud” Huestis Awards
Copper mineralization was first recognized along Kwanika Creek in 1964.
Since 2006, Serengeti has drilled 75,000 meters at the Kwanika project. In 2010, Serengeti principals David Moore, President and CEO, and Myron Osatenko, former Chief Geologist, were awarded the Association of Mineral Exploration, British Columbia (AMEBC) H.H. “Spud” Huestis Award for Excellence in Prospecting and Mineral Exploration in recognition for their discovery of the Kwanika deposit. (FIGURE 4)
The property is situated in the northern Quesnel Trough, which hosts numerous porphyry copper-gold deposits. The regional geology consists of Jurassic age andesitic volcanic rocks intruded by monzodiorites and monzonites with the Pinchi and Manson Creek faults on the west and east sides respectively. Kwanika is located between Northgate’s former Kemess Mine, and the Mt. Milligan deposit, reported to contain mineable reserves of 6.0 million ounces of gold and 2.1 billion pounds of copper, currently being developed by Thompson Creek Metals.
The Kwanika project consists of two porphyry deposits, the Central copper-gold Zone and the South Zone, a copper-molybdenum-gold-silver zone located two kilometers to the South. (Figure 5)
The Central Zone (copper-gold) deposit is characterized by the presence of two major and several minor intrusive bodies of the multi-phase Hogem Batholith intruding a succession of andesitic rocks of the Takla Volcanic Group. Hypogene mineralization consists of disseminated chalcopyrite, bornite, and pyrite in and around a potassically altered monzonite stock. Where strongly mineralized, the unit commonly displays quartz stock work and hydrothermal brecciation. The highest grades occur within zones of strong to intense, texture destructive albite-hematite alteration, commonly occurring at the top of the hypogene mineralized zone. A supergene enrichment blanket has been superimposed on the Central Zone and extends to depth beneath unconformably overlying post-mineral sedimentary rocks which have preserved the supergene zone. Thickness of the supergene profile ranges from 5 to 70 meters in thickness and extends laterally for up to 500 meters. Two distinct assemblages of supergene mineralization are observed in the Central Zone; minor, supergene oxide (native copper) and prevalent, supergene sulphide (chalcocite, covellite).
The South Zone (copper-molybdenum-gold-silver) deposit occurs within a fault bounded sequence of strongly altered intrusive rocks of alkalic to intermediate composition. This structural corridor is bounded by the ‘West Fault’ to the west and possibly by a similar fault interpreted to lie along the east boundary of the corridor. Coincident chargeability and resistivity anomalies form a geophysical domain that represents the fault bounded South Zone corridor. This variably mineralized domain is 2,900 meters long and up to 500 meters wide.
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