The Kwanika (Central Zone) region is part of the Kwanika property, located approximately 3 kilometres north of the Kwanika (South Zone) deposit (093N 073) and 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) 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.

The region 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.

The Central zone deposit is characterized by two major and several minor intrusive bodies of the Hogem batholith intruding into the andesitic rocks of the Takla Group. Hypogene mineralization occurs as disseminated chalcopyrite, bornite, and pyrite in and around potassic altered monzonite. In areas of strong mineralization, the unit commonly displays quartz stockwork and hydrothermal brecciation. Two distinct assemblages of supergene mineralization are observed in the Central zone: minor, supergene oxide (native copper), and supergene sulphide (chalcocite and covellite).

In 2006, Serengeti Resources Inc. drilled four of six holes north of the Kwanika (South Zone) deposit (093N 073). Hole K-06-04 tested the edge of a large (2000 by 500 metres), newly identified northern induced polarization chargeability anomaly situated about 3 kilometres north of the South zone deposit. This hole intersected 18.3 metres grading 0.32 per cent copper and 0.15 gram per tonne gold, along with anomalous silver and molybdenum (Assessment Report 29261).

In 2008, Serengeti Resources Inc. reported updated resource estimates in the Central zone of 182.6 million tonnes indicated, grading 0.29 per cent copper and 0.28 gram per tonne gold, and 28.5 million tonnes inferred, grading 0.19 per cent copper and 0.20 gram per tonne gold (Press Release - Serengeti Resources Inc., June 17, 2010).

From July 2006 to September 2010, drilling on the Central zone has totalled 50 925.7 metres in 109 holes. In 2011, Serengeti Resources Inc. released an updated resource estimate of 243.6 million tonnes of indicated mineral resources grading 0.23 per cent copper, 0.21 gram per tonne gold, and 0.69 gram per tonne silver (0.32 per cent copper equivalent) containing 560 million kilograms of copper, 47 million grams of gold, and 153 million grams of silver, and 55.2 million tonnes of inferred mineral resources grading 0.14 per cent copper, 0.14 gram per tonne gold and 0.42 gram per tonne silver (0.20 per cent copper equivalent) containing 76 million kilograms of copper, 7 million grams of gold and 19.8 million grams of silver, 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).

See Kwanika (South Zone) (093N 073) for full property history and regional geology.

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. A 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 proposes 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).

In 2018, Kwanika Copper Corp. completed 21 diamond drill holes, totalling 7419.0 metres, on the Kwanika property. Drilling intercepts from the program were reported to be encouraging and to show that there exist clear trends to the high-grade gold and copper mineralization. In the case of gold, high grades are typically associated with west-dipping syn- and post-mineral feldspar porphyry dikes, which enrich grades along their margins and into the surrounding hostrock. For copper, grade is strongly influenced by both supergene concentration along a Cretaceous unconformity zone with discreet ore mineral zonation, and by strong potassic alteration within the bornite-chalcopyrite hypogene core.

In March 2019, Serengeti Resources released the results of a recently completed independent mineral resource estimate on the Central zone. Combined open pit and underground constrained Central zone resource highlights include Measured and Indicated (M+I) Resource of 223.6 million tonnes grading 0.27 per cent copper, 0.25 gram per tonne gold and 0.87 gram per tonne silver (Press Release - Serengeti Resources Inc., March 3, 2019).