The Kwanika developed prospect is situated on Kwanika Creek, 2 kilometres south of its confluence with West Kwanika Creek and approximately 40 kilometres east of Takla Landing. The Kwanika project is about 140 kilometres northwest of Fort St. James and can be accessed by resource roads. From work spanning more than a decade, Serengeti Resources Inc. has defined two principal porphyry deposits, referred to as the Central (copper-gold-silver) (093N 237) and South (copper-molybdenum-gold-silver) zones, which are separated by about 1 kilometre. Both are hosted by potassic-altered mostly monzonitic rocks of the Hogem batholith.

Regionally, the area is underlain by Middle Triassic to Lower Jurassic Takla Group sediments intruded by various phases of the Late Triassic to Early Cretaceous Hogem Intrusive Complex. Carboniferous to Jurassic Cache Creek Complex rocks occur to the west. The proximity of the north striking Pinchi fault zone is evidenced by the presence of numerous fractures, shears, and faults.

Although a thick mantle of glacial drift covers the Kwanika Creek valley, two generally altered phases of the Hogem Intrusive Complex appear to host the majority of the mineralization. The oldest phase is Early Jurassic in age and has been classified by Garnett (1978) as a hybrid quartz-bearing monzonite. The rocks are leucocratic, varying in colour from a mottled pink to green, medium-grained to aphanitic (where strongly chlorite altered) and weakly to strongly fractured. They have undergone extensive alteration, including potassic, chloritic, epidotization, argillic and silicification. In addition, hematite commonly occurs on fracture surfaces (in association with chlorite and epidote alteration). Quartz and/or carbonate veinlets are present throughout the phase, the former generally associated with potassic alteration.

The younger phase is Early Cretaceous in age and has been classified as ranging in composition from quartz monzonite to granite. The rocks are orange to pink in colour, leucocratic, medium-grained and weakly to intensely fractured and faulted. They are locally cut by dark green-black aphanitic dikes and rare feldspar porphyry dikes. Plagioclase feldspars have been commonly altered to sericite in areas of fracturing. Hematite is present as patchy stains on fracture surfaces, but is also locally pervasive. This phase has been observed in contact with and intruding Takla Group rocks as well as intruding the hybrid quartz-bearing monzonite phase.

Takla Group rocks predominantly comprise argillite with interbedded black mudstone and brown siltstone. These sediments strike from north to northwest and dip steeply to the east or west. A slaty cleavage parallel to bedding has developed within these rocks. Greywacke and greywacke/volcaniclastic members are also present in the area. The greywacke members vary from siltstone to sandstone, are massive and usually exhibit a weak limonitic stain. Angular shards within the greywacke/volcaniclastic members distinguish them from the greywackes.

The area surrounding the occurrence is structurally complex, the Pinchi fault zone being the most prominent feature. Its proximity to Kwanika Creek has resulted in strong to intense fracturing, faulting and brecciation. Fracturing within any single outcrop usually shows several orientations and these display complex crosscutting relationships. Northeast-striking faults appear to be the best developed in the area. Pyrite (with or without chalcopyrite) stringers, quartz veinlets, calcite, potassium feldspar, hematite, chlorite, and epidote commonly occur within fractures.

The most common mineral present is pyrite which occurs as disseminated grains, blebby masses up to 10 centimetres across in shears and as fracture fillings in the hybrid quartz-bearing monzonite and quartz monzonite to granite phases. Pyrite as large blebs, 2 to 3 millimetre wide stringers and disseminations forming up to 20 per cent of the outcrop also occurs in gossanous zones associated with intense shearing. Chalcopyrite is most often associated with pervasive chlorite alteration in the hybrid quartz-bearing monzonite phase. Here, it occurs as disseminated fine grains with pyrite and local bornite. Chalcopyrite also occurs in the quartz monzonite to granite phase as blebs up to 5 millimetres in size (with malachite and rarely azurite), as halos and on fracture surfaces. Molybdenite is rare in the hybrid quartz-bearing monzonite and quartz monzonite to granite phases. It has, however, been observed in the hybrid quartz-bearing monzonite as blebs in quartz veins. In the quartz monzonite to granite phase, it is associated with chalcopyrite and argillic alteration, occurring as disseminated grains. A gold assay value of 1.081 grams per tonne was obtained from a sample of silicified, limonitic hybrid quartz-bearing monzonite hosting 5 per cent pyrite/chalcopyrite (Assessment Report 19373, page 11).

The first exploration on the Kwanika property occurred in the 1930s and 1940s with the discovery of mercury at Pinchi Lake. Initial exploration concentrated on mercury along the Pinchi fault and placer gold in Kwanika Creek. The area was first recognized as having copper (with or without molybdenum) potential in 1964, when Hogan Mines Ltd. (later Bow River Resources Ltd.) optioned the Boom and Frankie groups of claims. Copper mineralization was first recognized along Kwanika Creek by A. Almond, G. Bleiler and A. Hodgson in 1964. Initial exploration was carried out in 1965 by Hogan Mines Ltd. and included trenching and two X-ray drillholes (26.5 metres).

Intermittent exploration work from 1965 to 1974 on the South and North zones has resulted in the definition of a low-grade copper deposit within an area of 488 by 305 metres. In 1966, Canex optioned the property and completed geological, geochemical, magnetic and induced polarization surveys, as well as some trenching and eleven diamond-drill holes (842.1 metres). The option was terminated and the property was acquired by Great Plains Development Company of Canada in 1969, who completed seven diamond-drill holes on the north area of the property. In 1970, Hogan Mines Limited conducted an induced polarization survey over part of the claim group and the drilling of two 360-metre diamond-drill holes. The first hole intersected 0.169 per cent copper over 174 metres and the second hole 0.214 per cent copper over 177 metres (Property File Cyprus Anvil - Bleiler, 1970). The next year, diamond drilling yielded an intersection of 48 metres grading 0.41 per cent copper (Property File Cyprus Anvil - Seraphim, 1971).

In 1972, Bow River resources drilled six percussion holes (548 metres) and J.A. Garnett of the British Columbia Department of Mines mapped the property and logged the core. Pechiney Development Ltd. optioned the property in 1973 and did 64.4 kilometre of grid, a ground magnetic/ induced polarization survey and thirty percussion-drill holes (2993 metres). The assays of these holes are not available but the hole locations and depths are known. Pechiney’s data are reported in assessment reports 4826 and 5266.

The North zone, where inferred reserves of 36 million tonnes grading 0.2 per cent copper have been outlined, had received intensive work (Canadian Institute of Mining and Metallurgy Special Volume 15 (1976), Table 1, #97).

In 1989, W. Halleran staked the property and recognized the copper-gold association. The property was subsequently optioned to Eastfield Resources who completed rock, stream, and soil geochemistry, induced polarization geophysical surveys (23.3 kilometres) and drilled four diamond-drill holes in 1991 (549.2 metres). These data are reported in assessment reports 19131 and 21648. The Eastern anomaly was identified as 1800 by 400 to 600 metres in size and overlaps with the northern copper occurrence. The Western anomaly measured 3500 by 300 to 500 metres with weakly mineralized intrusives noted in outcrop. The South zone anomaly measured from 600 by 200 to 400 metres and overlapped an anomalous gold and copper geochemical stream sample.

Discovery Consultants staked the property in 1995 and did a limited heavy mineral and rock geochemical program (Assessment Report 24422). Work carried out on the property in 1999 comprised additional heavy mineral stream sediment sampling by Discovery Consultants (Assessment Report 26147).

The Kwanika property was acquired by Serengeti Resources Inc. in late 2004 and in 2005, Serengeti conducted a 530 line-kilometre airborne magnetic/radiometric survey as part of a larger survey of the Kwanika and Germansen-Valleau properties. In addition, eleven rock samples and one seep sample were collected along Kwanika Creek in 2005.

In 2006, Serengeti Resources Inc. hired Peter E. Walcott and Associates Ltd. to conduct an induced polarization (26.9 kilometre) and ground magnetic (26.9 kilometre) survey on the property. Five BQ diamond-drill holes totalling 659.5 metres were also completed on the property in 2006. Serengeti drilled one hole (K-06-01) within the previously known resource that included an interval of 28 metres grading 0.23 per cent copper and 0.12 gram per tonne gold within a broad mineralized zone (Assessment Report 29261). Hole K-06-02, testing a strong induced polarization anomaly 1300 metres to the north of the Swan, included an intercept of 30.2 metres grading 0.18 per cent copper and 0.15 gram per tonne gold (Assessment Report 29261).

In 2008, Serengeti Resources Inc. updated the inferred resources of the South zone to 129.1 million tonnes grading 0.30 per cent copper, 0.09 gram per tonne gold, 1.76 grams per tonne silver and 0.010 per cent molybdenum (Press Release - Serengeti Resources Inc., June 17, 2010).

From July 2006 to September 2010, drilling on the South zone has totalled 18,463.6 metres in 59 holes. In 2011, Serengeti Resources Inc. released an updated resource estimate of 239.9 million tonnes of inferred mineral resources grading 0.20 per cent copper, 0.09 gram per tonne gold, 1.49 grams per tonne silver and 0.007 per cent molybdenum (0.27 per cent copper equivalent) containing 490 million kilograms of copper, 18 million grams of gold, 326 million grams of silver and 17 million kilograms of molybdenum, using a $7.50 per tonne cut-off (Press Release - Serengeti Resources Inc., January 20, 2011). In 2013, Serengeti Resources Inc. filed a National Instrument (NI) 43-101 compliant preliminary economic assessment which indicated a potential 13.5 year mine life (www.sedar.com).

The Kwanika property consists of 59 contiguous mineral claims covering an area of 24,152 hectares and is 95 per cent owned by Serengeti Resources Inc. and 5 per cent owned by Daewoo Minerals Canada Corporation (ca. 2016). Serengeti acquired the original extent of the Kwanika property through staking between 2004 and 2006. In 2016, three surrounding claim blocks were connected to form the current 59 contiguous Kwanika claim group. The Kwanika claims were acquired in order to follow up past exploration activities that indicated potential for a large porphyry copper deposit to occur underlying the extensive quaternary glacial sediments that cover the majority of the property. Several phases of exploration and drilling from 2006-16 have defined two mineral deposits: the copper-gold-molybdenum-silver South zone and the copper-gold-silver Central zone. The most recent mineral resources for these two zones was presented in a National Instrument (NI) 43-101 Technical Report completed by SRK in December 2016. Open pit mineral resources are reported at a copper equivalent cut-off of 0.13 per cent (Assessment Report 36780).

Central Zone

Open Pit

Indicated – 101.5 million tonnes grading 0.31 per cent copper, 0.32 gram per tonne gold and 0.96 gram per tonne silver.

Inferred – 31.9 million tonnes grading 0.17 per cent copper, 0.14 gram per tonne gold and 0.59 grams per tonne silver.

Underground

Indicated – 29.7 million tonnes grading 0.34 per cent copper, 0.36 gram per tonne gold and 1.05 grams per tonne silver.

Inferred – 7.9 million tonnes grading 0.23 per cent copper, 0.17 gram per tonne gold and 0.68 grams per tonne silver.

South Zone

Inferred – 33.3 million tonnes grading 0.26 per cent copper, 0.08 gram per tonne gold, 1.64 grams per tonne silver and 0.01 per cent molybdenum.

In 2016, Serengeti Resources completed a deep-penetrating ground induced polarization survey line that confirmed a modelled strong induced polarization chargeability anomaly from a previous survey. A three-hole deep-drilling program (2446 metres), followed to test the lateral continuity of the supergene enrichment in the known Central zone high-grade core, and to test for extensions along its downdip edge to the north and to greater depth into the chargeability anomaly.

In April 2017, Serengeti Resources Inc. released a NI 43-101 report and preliminary economic assessment for the Kwanika project. The report proposed a combined open pit and underground operation with an estimated mineral resource of 131.2 million tonnes Measured and Indicated, and 73.1 million tonnes Inferred. The projected mine life is 15 years, with a milling rate of 15,000 tonnes-per-day. In October, Serengeti completed an agreement with POSCO Daewoo and Daewoo Minerals Canada (DMC) to form a joint venture company, the Kwanika Copper Corporation (65 per cent Serengeti, 35 per cent Daewoo), to pursue development (Information Circular 2018-1, page 29). The Kwanika South zone was reported to contain an inferred resource of 33,300,000 tonnes grading 0.26 per cent copper, 0.01 per cent molybdenum, 1.64 grams per tonne silver and 0.08 gram per tonne gold (Moose Mountain Technical Services (2017-04-28): NI 43-101 Technical Report for the Kwanika Project - Preliminary Economic Assessment Update 2017 - Revision of Technical Report issued 19 April 2017).

In 2018, Kwanika Copper Corp. completed 21 diamond drill holes, totalling 7419.0 metres, on the Kwanika property. This work was performed on the Kwanika Central (MINFILE 093N 237) zone to the north.