Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

March 08, 2010 09:00 ET

Channel Resources Initiates Process Testing Program at Fox Creek Lithium / Potash Brine Project, Alberta

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 8, 2010) - Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) announces that a process testing program of a bulk sample of brine from the Fox Creek Lithium / Potash project has commenced. The program has been designed to identify the most efficient and cost-effective methods to produce a variety of mineral products from the brine including lithium carbonate, potash, bromine and borates.

Oil and gas operators in the Fox Creek area are supporting and participating in the program, in which Channel is extracting a sample of approximately 2,000 liters of brine from a producing gas well in the central portion of the Fox Creek permit area, targeting the Beaverhill Lake aquifer. 

The brine sample is being shipped to Golden, Colorado where it will undergo laboratory testing by Hazen Research, Inc. ("Hazen"), a recognized expert in the field of brine processing technologies. Hazen will test the brine with a battery of extraction methods including the traditional 'salting out' and solvent extraction processes targeting the commercial mineral products. Advanced methods for the recovery of lithium from brine through the precipitation of lithium aluminate and the concentration of lithium by the use of electrodialysis will also be tested.

The Fox Creek Project is a 369 square kilometre project located in west central Alberta. The project is in a heavily industrialized area with extensive historical oil and gas drilling that has encountered two major lithium-bearing brine aquifer systems. According to historical, non-NI43-101 compliant estimates, these aquifers host zones containing up to 4,000 tonnes lithium carbonate equivalent per square kilometre together with high concentrations of other minerals. 

Channel is assessing this deposit for its suitability as a feed source for a brine processing facility that would produce multiple products, including lithium carbonate. Channel will benefit from the extensive infrastructure already established in the area of the project, easy access to multiple energy sources, and the fact that more than 100 wells drilled on the property by oil and gas producers penetrate the target aquifers with brine already flowing with current production.

This news release has been prepared under the supervision of Colin H. McAleenan, P.Geo, who is the Company's "Qualified Person" under the definition of NI 43-101. Readers are encouraged to review the 43-101 technical report for the Fox Creek Project authored by Michael B. Dufresne, M.Sc., P.Geol., President of APEX Geoscience Ltd. of Edmonton, Alberta, who is an 'Independent Qualified Person' as defined in the instrument.

Some of the statements contained herein are forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the price of minerals, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise. Further disclosure on risk factors is available in the Company's various corporate filings at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Channel Resources Ltd.
    Colin McAleenan
    President & CEO
    604.684.7098
    or
    Channel Resources Ltd.
    Cyrus Ameli
    CFO & VP Corporate Affairs
    604.684.7098
    info@channelresources.ca