Kaiser Bottom Fish OnlineFree trialNew StuffHow It WorksContact UsTerms of UseHome
Specializing in Canadian Stocks
SearchAdvanced Search
Welcome Guest User   (more...)
Home / Works Archive / Trackers
 Thu Oct 8, 2020
Tracker: New Spec Value Rating for Serengeti Resources Inc
    Publisher: Kaiser Research Online
    Author: Copyright 2020 John A. Kaiser

Serengeti Resources Inc (SIR-V: $0.355)

Tracker - October 8, 2020: New Spec Value Rating for Serengeti Resources Inc

Serengeti Resources Inc sparked buying with its Oct 7, 2020 news release about the East Niv project which it had staked in Q1 of 2018 along with 7 other properties after the BC government released results on Jan 23, 2018 for its Geoscience BC Search III Program. This was an airborne magnetic and radiometric survey covering 9,600 sq km which CEO Dave Moore's team was quick to evaluate for new magnetic anomalies that past exploration had not explained away. They focused on targets in topographically low areas such as valleys where forest and talus covering the bottoms and slopes would have obscured the bedrock from past prospecting efforts. The initial claim blocks, announced Mar 1, 2020, were "postage stamp" size to reduce map staking costs and totaled only 7,760 hectares.

East Niv, which was only 943 hectares and wasn't mentioned in the preamble of the original news release though it was in the list, has since grown to 20,000 hectares after Serengeti conducted field work during the last two years. In the property map below the "faded" areas represent high topography while the brightly colored areas represent the low elevation areas that have attracted Serengeti's attention. The inlier block to the west of Main Showing was once part of the NIV property explored by Conrad Swanson's Intl Samuel Expl Corp in 2011-2013 which since 2015 has done 3 rollbacks adding up to 200:1 and now survives as Copaur MInerals Inc. This claim block on which high grade copper-gold showings were reported in 2013 apparently now is owned by Charlie Greig. A review of Intl Samuel's news releases from the 2011-2013 period does not indicate the junior put much effort into exploring what it called the Niv project.

When I talked to Dave Moore a couple months ago about the Kwanika project where the final hole of the 2020 season is now underway, he was quite excited about East Niv. I could not quite tell why other than his claim that this appeared to be a significant undrilled copper-gold porphyry system. The annotated visual shot of the Main Zone looking north was pretty much what was available over a month ago.

The East Niv update includes new graphics which show that the system appears to be an upright and intact porphyry intrusive system with a substantial footprint and copper-gold surface values comparable to those of the Kemess deposits 40 km to the north-northeast. The East Niv project is drill ready but Serengeti decided against rushing a short fall drill program, so this will be an exciting drill play for June 2021. The market responded because its current value has been based entirely on Kwanika's status as a copper-gold optionality play with additional discovery potential that is the focus of the 2020 drill program to which Posco declined to contribute (see What's Next Tracker Sept 3, 2020).

The graphic above of the Main Showing is a plan view compilation of data sets which appears to illustrate a classic porphyry intrusive center with a barren phyllic core flanked by copper bearing disseminated sulphides. When Serengeti first visited the area it was drawn to a rusty area where sampling yielded no copper or gold values which the company now recognizes as the center of the intrusion. The graphic below depicts the 150 m deep chargeability of an IP survey done over the Main Showing which correlates well with where you might expect disseminated sulphides to be present. The elongation of the IP high to the northwest and southeast is somewhat puzzling, so an expanded IP grid will be needed.

The diagram below is a geological interpretation of the Main Showing target at East Niv which depicts 2 mineralized zones called Main West and Main East, both of which yielded copper-gold values in outcrop at their northern periphery. 19 rock samples from Main West averaged 0.35% copper and 0.3 g/t gold with peaks of 0.82% copper and 1.14 g/t gold, while 10 Main East samples averaged 0.3% copper and 0.14 g/t gold with 0.76% copper and 0.35 g/t gold peaks. These two interpreted "mineralized zones", which correspond to copper and molybdenum soil geochemical anomalies, have a tonnage footprint in the 300-400 million tonne range to a depth of 300 metres. The mineralization is of the High K calc-alkaline style associated with gold enrichment such as the Red Chris deposit located about 200 km to the northwest. In fact the East Niv project is located within the eastern southern limb of the Stikine Terrane which is separated from the "Golden Triangle" western limb by younger Bowser Lake sediments.

Three First Nation bands claim jurisdiction over this area. Serengeti has already reached an exploration agreement with one band and is working on agreements with the other two bands whose territory includes the Kemess area. Dave Moore does not expect First Nations to be an exploration obstacle in this area which has been neglected during the past few decades after an initial flurry during the 1970's after Falconbridge discovered the smallish Sustut copper redbed system located about 15 km east of East Niv.

The new East Niv copper-gold porphyry target is a very positive development for Serengeti Resources Inc because its potential for a brand new, sizable discovery will make it easier to raise capital between now and the resumption of the exploration season in June of 2021. Serengeti is drilling the last of the 2020 Kwanika holes as outlined in the drill plan above. Because the Kwanika drilling program was designed to expand the resource potential in the vicinity of the Central Zone 35% partner Posco declined to contribute to the $1 million 4,000 m drill program, allowing Serenegti to increase to a 67% interest.

The main potential for market moving discovery news at Kwanika resides with the NW Deep IP anomaly which Serengeti tested in 2016 with hole K16-178. This hole yielded 0.11 g/t gold and trace copper over 245.3 m which led management to conclude that it had overshot the target.

Hole K20-196 was drilled as a dual purpose hole to gather more data for the near surface Central Zone mineralization and undercut hole K16-178. As the drill section above indicates hole K20-196 did intersect visible copper mineralization, though probably not underground block-caving ore grade. The last hole of the season K20-204, depicted as K20-O1 in the section, is underway and expected to be completed to a depth of 850 by Canadian THanksgiving. This will be an important hole that makes or breaks the potential of the NW Deep IP anomaly to represent additional underground mineable copper-gold mineralization just north of the Central Zone. Serengeti expects assays for hole #196 and #197 within a week or so. Hole #196 will set the stage for what we might expect from the visuals of #204 when it is completed. Hole #198 was drilled to test the deeper part of the Central Zone toward the Pinchi Fault which is beneath the underground resource depth limit. Hole #197 seeks to extend mineralization to the south of the Central Zone. Hole K20-M2 which is a 300 m stepout to the south is potentially important, as is K20-L1 which is testing a deep IP target close to the Pinchi Fault. All of these NW Deep and stepout exploration holes could deliver disappointing results which leave Serengeti with a depleted treasury and causes Kwanika to revert back to a copper-gold optionality story in the eyes of the market, making it tough to refinance for 2021 during the winter off-season for north-central British Columbia. The East Niv play represents a brand new exploration discovery play with not just a sizable tonnage footprint potential at the Main Zone, but also district scale potential within the larger 20,000 ha property. It will attact new exploration capital even if Kwanika's 2020 exploration results do not change much about Kwanika itself. In light of this development I am upgrading Serengeti Resources Inc from a Bottom-Fish Spec Value rated Favorite to a Fair Spec Value rated Favorite.


You can return to the Top of this page

Copyright © 2023 Kaiser Research Online, All Rights Reserved