Location

The Mil/Choo project is located in the Quesnel Trough of northern B.C., 15-25 km east of 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 Terrane Metals.

Property Ownership

The Choo claims cover an area of 60 square kilometres are 100% owned by Serengeti Resources Inc (Serengeti). The Mil claims, which adjoin the Choo block to the east and cover an area of 139 square kilometres are owned by the Quest Joint Venture (60% Serengeti/40% Fjordland Exploration).

Geology & Exploration Highlights

The project area is located in a highly favorable tectonic setting as it lies within a 60 km long, east-west trending flexure that is anchored by the Mt Milligan deposit to the east. This regional cross structure is one of the strongest features in the Quesnel Trough. Several regional aeromagnetic and radiometric anomalies have been identified in the project area that are similar to those associated with Mt Milligan. Compilation of geophysical surveys carried out by Serengeti and previous operators has identified an impressive system of chargeability (10 mV/V to +40mV/V) that has a strike length of 22 km and is 2-3 km wide.

The landscape is largely covered by a blanket of glacial till. Scattered outcrops are comprised of pyritic, propylitic altered andesite and diorite. A total of 35, generally wide spaced drill holes, mostly to a depth of 90 m below the surface, have tested portions of the IP anomaly. 16 of these holes intersected 0.03% Cu to 0.12% Cu over significant lengths, within propylitically and weakly potassically altered diorites and andesites. The best intersections include 0.07% Cu/82 m, 0.07% Cu/42 m, 0.12% Cu/33 m, 0.10% Cu/20 m, 0.68% Cu/3 m, 0.03% Cu and 0.10 g/t Au/20 m and 1.5 g/t Au/4 m. Five holes were drilled by Serengeti in 2009 (3 on Mil, 2 on Choo). In 2009, the furthest hole west on the Choo property intersected strongly pyrite altered diorites and andesites that had clearly been subject to strong hydrothermal alteration. The final hole in the 2009 program was drilled in an area not previously tested on the Mil property and intersected strongly to intensely propylitically altered (pyrite+chlorite+/-silica) andesite, bottoming in 0.12% Cu over 6 m. While drilling has not as of yet encountered economic Cu-Au grades, the above intersections indicate the presence of widespread Cu+Au anomalism over a significant area, all within a very large IP chargeability system.

Several attractive targets have been identified on the western portion of Choo property. The new targets comprise bulls-eye IP anomalies that flank magnetic anomalies, one to two square kilometers in extent that show similarities to targets recently described by Terrane Metals from the Mt Milligan area. These targets are thought to represent focal points to a system which is dominated by broad and much more intense geophysical features and are high priority targets for follow up drill testing.

The regional tectonic setting of the Mil/Choo project area is a decidedly favorable environment for the formation of porphryry Cu+/-Au deposits. The airborne magnetic and radiometric signatures identified over the Mt. Milligan deposit are very similar to those seen over the Mil/Choo properties. Previous exploration work on the property has defined a mainly covered chargeability anomaly that has dimensions of at least 22 km by 2-3 km and is associated with the southern margin of a strong, airborne magnetic anomaly. This chargeability anomaly is exceptionally strong (>40 mV/V), indicating the presence of a high pyrite system, similar to the neighboring Mt Milligan project. In addition, the chargeability system occurs within one of the strongest cross features in the Quesnel Trough, as seen from the airborne magnetics. Limited diamond drilling has tested only a small part of this chargeability anomaly with wide-spaced, mostly shallow holes. Drilling has demonstrated widespread, low grade copper and gold values occurring within pyritized/propylitized and skarnified zones of andesitic and dioritic rocks, which are similarly mineralized to lithogies adjacent to the Mt. Milligan deposit. There is evidence to suggest that a significant deposit may be present either adjacent to or below the depth of existing drilling.

It is recommended to first carry out a geochemical survey over the attractive geophysical targets (bulls-eye IP signatures flanking magnetic highs) in the western portion of the Choo property. A geochemical survey should also be carried out in the area of the intensely altered and weakly mineralized hole on the Mil property. Given favorable results from the geochemical survey, it is recommended that diamond drill program test the geophysical anomalies for the presence of a porphyry Cu+/-Au deposit.

The exploration programs have outlined a northwest trending area of open-ended geochemical and geophysical anomalism that measures 5 km long and at least 1 km in width.

A prospective trend of chargeability and geochemical anomalism is anchored by sub-ore grade drill intersections, highlighting the potential for a porphyry Cu+/-Mo+/-Au deposit to occur within the target area.

It is recommended that mapping/prospecting and soil sampling should be completed to the west and to the northwest of the open-ended geochemical anomalies. Pending the results of the geochemical investigation, an IP survey should be completed to extend coverage on the northwest trending target. The valley bottom chargeability anomaly currently represents an attractive drill target.

Infrastructure

The Mil/Choo project area is via active logging highways, 80 km by road from the full service town of Fort St James. A network of logging roads accesses the southern half of the Mil claim and the eastern half of the Choo claim block. Other areas are accessible by helicopter and/or construction of trails off of existing roads. The topography is gently sloping with broad rolling hills.