Location

The Tchentlo project is located in the Quesnel Trough of northern B.C., approximately 45 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 Tchentlo claims cover an area of 61 square kilometres are 100% owned by Serengeti Resources Inc

History

The project area is located in a highly favorable regional tectonic setting as it sits at the western margin of 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. Regional scale aeromagnetic and potassium radiometric anomalies occur within the property, which are strikingly similar to Mt. Milligan. Tchentlo is largely covered by glacial till but scattered outcrops occur of propylitized and potassically altered diorite with pyrite, chalcopyrite, and malachite. In addition, the only known drill testing was a three-hole program (212 m total) completed by Serengeti in 2006, as well as some shallow holes completed in the 1960's with no locations or results known. Four targets have been identified on the property, all of which are permissive to host a porphyry copper-gold deposit.

Geology & Exploration Highlights

The four targets which have been identified as permissive to host a porphyry copper-gold deposit are described in greater detail as follows. Target 1 is located in the eastern part of the property and consists of a mostly covered, 3,500 m by 2,500 m copper-gold soil anomaly with the anomalous values similar in magnitude to the Mt. Milligan deposit. This target is coincident with three, strong airborne magnetic anomalies, a large airborne radiometric K high with a corresponding Th/K low, small outcrops and float boulders of pyritized and altered monzodiorite and monzonite with minor copper mineralization. A reconnaissance IP survey by Serengeti Resources covered the up ice parts of the copper-gold soil anomaly and defined two, covered, open chargeability anomalies, one 1,500 m by 1,000 m and the other 1,000 m by 400 m that may be the source of the copper-gold soil anomalies. The first anomaly shows peripheral float boulders with anomalous copper and gold values (432 ppm to 2,170 ppm and less than 10 ppb to 30 ppb respectively). These values are typical of the values close to a porphyry copper-gold deposit. IP inversions suggest that the chargeability anomalies are barely unroofed. Serengeti drilled two short holes in this target in 2006 (78.7 m and 45.4 m). The first hole was drilled in the centre of a magnetic high and intersected strongly propylitically altered, magnetite-rich andesite with weakly anomalous copper and gold values. The second hole was abandoned short of the target depth. The porphyry target is now thought to be located along the flanks of the magnetic high.

Target 2 is found about 1.5 km west of Target 1. Here, a covered 1,200 m by about 300 m chargeability anomaly was found that is coincident with a strong, ground magnetic anomaly. A small but strong copper soil anomaly (values up to 3,720ppm) was identified, 300 m to the southeast (down ice), in which a boulder grading 1,950 ppm Cu and 455 ppb Au was located (same grade as the Mt. Milligan deposit). Serengeti tested this target with one drill hole in 2006 (88.7 m). The hole intersected strongly pyrite, pyrrhotite bearing gabbro with trace chalcopyrite and moderately anomalous copper and gold values.

Target 3 is located 3.5 km west of Target 2. Two covered, copper soil anomalies, one +1,000 m by 200 m and the other 1,500 m by 300 m have been identified that are coincident with K high and Th/K low anomalies. Weak, scattered gold values occur with the copper soil anomalies. No IP surveying has been done over this target.

Target 4 is in the extreme western part of the property and shows four, covered copper soil anomalies over an area 1,800 m by 300 m. No gold soil anomalies were reported. The copper soil anomalies are associated with a large, strong airborne magnetic anomaly and a large K high and corresponding Th/K low anomaly that is identical to that associated with the Mt. Milligan deposit. Four boulders, averaging 1.47% Cu and 320 ppb Au, were found in the vicinity of the copper soil anomalies. No IP surveying has been done over this target.

The Tchentlo project area has excellent potential to host an alkalic porphyry Cu-Au deposit. Importantly, there is potential at shallow depth for large porphyry copper-gold deposits as there is evidence for multiple centers of mineralization. Geophysical and geochemical surveying has defined four high priority targets that require further ground geophysical investigation and diamond drill testing. It is recommended that IP surveys be carried out on targets 1, 3, and 4 in order to identify and/or better define potential sulphide systems. Given the established metal signatures in the target area, favorable IP targets should be followed up by diamond drilling.

Infrastructure

The Tchentlo project claims are accessible to within 3 km by active logging roads, 100 km by road from the full service town of Fort St James. Elevation is 950 m to approximately 1,400 m with May to October the best working months; however, year round-work is possible.