Serengeti Resources Inc (CVE:SIR) exploded to record highs after reporting outstanding results from a drill program in the Kwanika Project. Reports that the Project contains excellent grades of gold and copper rock mineralization is the latest catalyst strengthening investor sentiments in the stock.
The Kwanika Project development comes just weeks after the mining company reported a discovery of strong induced-Polarization target as the Croy-Bloom Property. Positive developments on the mining front have once again reaffirmed the company’s long-term prospects given the value such properties are poised to generate going forward.
Serengeti Resources Price Analysis
Serengeti Resources is currently trading in a steep uptrend having emerged as a buy target for investors looking to gain exposure in the mining business. After a 160% spike higher, the stock has resorted to trading in a range in what appears to be a minor correction on investors taking profit.
The stock faces immediate support to the CA$0.35 level. A breach of the critical support level could see the stock plummeting to the CA$0.20 handle seen as the next substantial support level. However, given the strength of the upward momentum, it is becoming increasingly clear that the stock will continue powering high.
While the stock is trading at the CA$0.40 handle, it faces immediate resistance at the CA$0.55 handle. A breach of the critical resistance level should open the door for the stock to continue surging, on its way to recording a new 52-week high.
What Does Serengeti Resources Do?
Serengeti Resources is an exploration and mining company that explores mineral properties across Canada. Its flagship project is the Kwanika Copper-gold deposit that covers about 9,418 hectares in Northern Quesnel Trough British Columbia. The company is also engaged in the exploration and mining of silver and Molybdenum resources.
Positive Mining Exploration Results
The announcement of excellent grade results at the Kwanika gold-copper project appears to have reignited investor’s interest in Serengeti Resources. The first batch of assay results on an ongoing drilling project has demonstrated strong gold and copper mineralization within the potential underground potential.
Immediate study results have also shown excellent grades near the surface within the potential open pit domain. Serengeti Resources has confirmed plans to incorporate the full set of results into a revised resource estimate as part of a pre-feasibility study scheduled for completion mid next year.
“One of our Key strategic objective for 2018 is to expand the resource tonnage and to increase ether overall resource grade of the Central zone. If we are successful it will open up a number of alternatives for our engineers you optimize the project design and potentially enhance the overall project economics,” said CEO David W. Moore.
The excellent gold-copper results at the Kwanika Project attests to Serengeti Resources potential mining resources. The company has already confirmed exceptional Drill Target at its Croy-Bloom Property in British Columbia.
The company has also confirmed the discovery of strong induced-Polarization IP target. Serengeti Resources discovered a total of 11.5 kilometers of strong induced polarization. The property plays host to numerous high-grade mineral occurrences including the 2.5 kilometers Croy Vein.
“The new IP geophysical data coupled with a strong geochemical target and respectable historical drill results identifies a multi-parameter gold-copper drill target at Soup Ridge. When combined with the numerous other mineralized occurrences on the property, demonstrates that Croy-Bloom is an outstanding property with high potential for discovery of a porphyry system,” said Mr. Moore.
In addition, Serengeti Resources has confirmed the completion of field activities at the Arty Gold-Copper project. Immediate geological and geophysical interaction data strengthen previously identified Kemess East Offset target. The company has also identified three additional targets on the property and now plans a drilling program to test the high potential targets.
What Next For Serengeti Resources
Serengeti Resources prospects in the mining sector have essentially received a boost with the gold-copper discovery at the Kwanika project. The results further strengthen the merits of the company’s mining properties from where it plans to generate significant value going forward.
A recent spike higher is in response to investors taking note of what is at stake as the company continues to explore its gold-copper projects. That said the stock looks set to continue powering high as positive news continues to stream from the company’s mining operations.
A pullback from record highs of CA$0.550 essentially presents an opportunity for investors who missed on the previous rally to take advantage of, as Serengeti Resources looks set to finish the year one high.
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Disclosure: We have no position in CVE:SIR and have not been compensated for this article.