Kemess produced 3 million ounces of gold and 360,000 tonnes of copper between 1997 and 2011*. Serengeti views this newly identified target as having the size and intensity to host a significant sulphide system at relatively shallow depth. It remains open to the north for expansion and is a high priority for drill testing.
Serengeti completed a deep penetrating, reconnaissance IP geophysical survey along four widely spaced lines on the UDS property in September. Three of the lines covered valley bottom located along a major structure northeast of the Kemess South open pit and east of the Kemess Underground and Kemess East deposits. The area had previously been identified by Serengeti as highly prospective.
"This newly identified target represents a compelling multi-parameter drill target located close to a past producer and two similar deposits," stated Serengeti President & CEO David W Moore. "One of the things that excites me so much about this new target is that it may represent an extension of the Kemess South Deposit, which was truncated on its southeast corner by a regional fault. The IP anomaly is strongly indicative of a relatively shallowly buried sulphide system and is a high priority for drill testing and the Company will be applying for a drilling permit as soon as possible," stated Moore.
The IP chargeability zone crosses the UDS property boundary at depth from the south where prior mine operator Northgate Minerals identified a deep, fairly weak anomaly associated with a small body of Black Lake monzonite which is the host to all three Cu-Au deposits in the district. The newly identified chargeability anomaly increases in strength to the northeast reaching values of 40 mV/V and comes closer to surface on the northernmost line where it remains open for expansion. Currently identified extent of the chargeability anomaly is approximately 900 by 1500 meters.
Soil sampling by a prior owner in 2004 outlined the area of elevated copper-zinc-gold geochemistry coincident with and immediately upslope of the newly identified geophysical anomaly. Limited sampling by Serengeti staff in 2014 substantiated the original soil anomaly and identified pyritic Takla volcanics, which lie directly above the three nearby Cu-Au deposits. Furthermore, rock sampling, trenching and very shallow drilling by an earlier owner in 1989, 600 meters further to the north of the current target area identified scattered gold-silver-polymetallic mineralization which is commonly developed peripheral to, or above porphyry systems.
The UDS property is part of the Company's prospective pipeline of properties that Serengeti believes has the potential to add significant value for its shareholders. These properties are in addition to Serengeti's flagship Kwanika property. The Company continues to advance the revised resource estimate for the Central Zone at Kwanika where Serengeti recently reported encouraging drill results (See NR -2016-11 dated September 22, 2016). The new resource estimate for Kwanika is anticipated to be completed in the current quarter.
