Full results from 2007 aren’t in yet, but Serengeti Resources has already started its 2008 drilling program at the Kwanika Project, north of Fort St. James.
“We’re a couple of weeks away from announcing the results of the 2007 drilling results,” company president David Moore said last week. “Last year, we completed a $6.6-million program on Kwanika, which was up about 10-fold over 2006.”
The company drilled about 22,000 metres in 47 holes, 12 of which they are still expecting results from. Moore says one of the delays is because of the mining boom in the province.
“The exploration industry is so busy, we’re running into delays at the labs.”
The 2008 program started on Jan. 14, with Serengeti making full use of its fully-winterized facility at the site.
“That is one of the big advantages of having road access to the site from Fort St. James,” Moore said. “We can supplies and people in fairly easily.”
The initial part of this year’s program calls for 10,000 m of drilling, a figure Moore says will certainly go up.
“When we get the balance of the results from last year, we can determine what additional drilling is needed to advance to the resource step.”
He says they hope to have a calculation by the end of the year on what resources would be available in a mine at Kwanika, so they can start the economic calculations.
“This is all grassroots work,” he says. “We have to do all the work.”
He contrasts the work Serengeti has to do for environmental and archaeological programs with that done by Terrane Metals for its Mt. Milligan project.
“They had the advantage of having a lot of that work already done, because there had been a mine there before.”
Serengeti is also continuing to build a relationship with First Nations in the region, especially the Takla Band.
“There is a large pool of labour there. Last year, we employed about 25 people for different parts of the year and paid more than $300,000 in wages.”
In total, he says, the company spent $1.4 million in Takla and Fort St. James last year.
Serengeti also received the 2008 Prospector or Developer of the Year award at the recent resources forum in Prince George.
“We’re really pleased with the award,” Moore said. “It’s great to get that recognition.”
The first drilling at the Kwanika site was in 2006, and Moore says nothing has happened to make the company think it won’t be building a mine there.
“It’s been an exciting 14 months.”