PropertyThe Kwanika claims are 9418 hectares in size and are held in Kwanika Copper Corporation (Private Company)
LocationKwanika 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.
Target SummaryAn 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.
OwnershipKwanika Copper Corporation is held by Serengeti Resources Inc. 65%, POSCO DAEWOO 35%


NI 43-101 Technical Report for the Kwanika Project Preliminary Economic Assessment Update (April 2017)
Kwanika Copper-Gold Project, NI 43-101 Technical Report (December 2016)

Daewoo Minerals Canada (DMC) Joint Venture*

  • SIR - operator plus 10% management fee (> 50% ownership)
  • SIR retains  METC(30%) credits on qualifying expenditures on first $8.2M
  • SIR maintains rights to enter into streaming transactions on all precious metals subject to DMC having certain off-take rights 

* see NR16-03, April 6th, 2016 for full details

Preliminary Economic Assessment Presentation - August 2017

2017 Preliminary Economic Assessment Highlights

An independent NI 43-101  Preliminary Economic Assessment (“PEA”) for the Kwanika copper-gold porphyry project located in the Quesnel Trough of North-Central British Columbia, Canada was completed in April 2017.  The results of the PEA demonstrated the potential technical and economic viability of establishing a new copper-gold mine and mill complex on the property. The independent PEA was prepared by Moose Mountain Technical Services (see NR 2017-04, April 3rd, 2017 for full details).

  • Pre-tax NPV7% of CDN $324 million, 21.1% IRR, 15 year mine life.
  • Life of mine (LOM) metal production of 601 million pounds copper, 676,300 ounces gold, and 2.66 million ounces silver in concentrates.
  • Annual metal production of 50.4 million pounds of copper, 70,100 ounces of gold, and 181,100 ounces of silver in concentrates for the first eight years.
  • Initial capital cost of CDN $476 million plus LOM sustaining capital and  closure cost of $83 million for a 15,000 tpd (5.4 million tpa) mill and combined open pit, underground mining operation.

  • Projected C1 (Direct cash cost of productionper pound of copper net of gold, silver credits) of US$0.70/lb/Cu for first eight years or US$1.20/lb LOM  

2016 Kwanika Mineral Resources Estimate

The independent resource estimate was completed by SRK Consulting (Canada) Inc., of Vancouver British Columbia. (see NR16-13, November 14, 2016 for full details)

(SRK Consulting, Effective November 1, 2016)

Cut -off
Cu Eq
GradeContained Metal
(000's lb)
(000's oz)
(000's oz)
Kwanika Central Zone Resource

Pit Constrained



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 partners are currently finalizing a plan and budget to advance the project through completion of a Pre-feasibility Study (PFS) including funding a significant drilling program beginning in late September and initiating other activities consistent with PFS level studies.  Serengeti will remain as project operator and will be entitled to charge a 10% operator’s fee on expenditures, so long as it maintains a majority interest. 

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. 


David Moore and Myron Osatenko in 2010 H.H. "Spud" Huestis Awards

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. 

Property Geology

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. 

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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