Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

August 17, 2010 12:41 ET

Channel Resources Makes New Gold Discovery at Tanlouka Project, Burkina Faso

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2010) - Channel Resources Ltd. (TSX VENTURE:CHU) -

Discovery holes drilled 250 metres apart on same structure:

  • 83.5 metres grading 0.94 grams gold / tonne ("g/t Au") including 40 metres grading 1.37 g/t Au and 10 metres grading 3.11 g/t Au
  • 48 metres grading 1.17 g/t Au including 26 metres grading 1.98 g/t Au

Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased to report on partial drilling results from a Phase I Reverse Circulation ("RC") drilling program on the Tanlouka Gold Project in Burkina Faso, West Africa. This is the first drilling program to be conducted on the project apart from a historical, shallow RAB program and results indicate that a significant gold discovery has been made.

Exploration at Tanlouka has been focused on the Mankarga Zone ("Mankarga"), a five square kilometer area in the south end of the 105 square kilometer permit on which Channel has conducted semi-detailed soil sampling, induced polarization (IP) / resistivity and ground magnetic surveys. Initial drilling has tested five discrete target areas based on the presence of geochemical anomalies, high resistivity and chargeability structures, magnetic anomalies, as well as extensive artisanal workings.

Assay results from three of the five target areas drilled have been received thus far, indicating a significant new discovery at 'Mankarga 5', and good exploration potential remaining for the discovery of additional mineralization within other target areas. A drill-hole location map is provided at http://www.channelresources.ca/i/pdf/chu_tanlouka_Phase1results.pdf.

Mankarga 5

Two holes were collared in Mankarga 5, 250 metres along strike from each other on the northeast trending zone. Both holes, (T2010-7 and T2010-8) intersected two mineralized horizons including an upper low-grade zone, and a lower and wider higher grade zone.

Hole Number Interval (metres) Intercept Average Grade
  From To (metres) (g/t Au)
         
T2010-7 14 30 16 0.11
  46 94 48 1.17
includes 52 78 26 1.98
includes 54 58 4 3.32
and 74 78 4 6.54
         
T2010-8 8 32 24 0.27
  58 141.5 83.5 0.94
includes 68 118 40 1.37
Includes 68 78 10 3.11
and 90 108 18 1.49

NB: True widths have not yet been determined

Both holes were drilled with an azimuth of 300 degrees and a -50 degree dip; hole T2010-7 to a depth of 100 metres and hole T2010-8 to a depth of 141.5 metres ending in mineralization (0.61 g/t Au over 2 metres). The mineralized environment is a sheared and possibly mylonitized contact zone between a gabbroic unit and metasediments with a steep dip to the southeast.

"The two intersections in Mankarga 5 exhibit very similar geology and gold mineralization suggesting good continuity in the structure over the 250 metres between drill holes," commented Colin McAleenan, President and CEO of the Company. "The presence of artisanal workings along the trend indicates an apparent strike length for this shear zone of over 1,000 metres."

Mankarga 3

The Mankarga 3 target area consists of artisanal workings in an area of soil geochemical anomalies. Results from three holes drilled in the area indicate the presence of disseminated, low-grade mineralization within multiple zones up to 44 meters wide.

Hole Number Interval (meters) Intercept Average Grade
  From To (meters) (g/t Au)
         
T2010-3 62 84 22 0.15
         
T2010-4 0 20 20 0.17
  42 86 44 0.15
includes 42 44 2 0.71
         
T2010-5 30 46 16 0.23
  62 70 8 0.46
  74 76 2 2.32

NB: True widths have not yet been determined

Holes T2010-4 and T2010-5 were not completed to design depth due to mechanical problems. Further work is warranted in the Mankarga 3 area to follow up on these anomalous results and to investigate their relationship to higher-grade mineralization mined by the artisanal miners in the area.

Other Targets

Holes T2010-1, T2010-2 and T2010-6 were drilled into the Mankarga 4 target to test an area of strong coincident chargeability and resistivity anomalies outlined in IP surveys. These holes encountered quartz veins, and granite in contact with metasediments carrying no significant gold values.

Results are expected in the near future from Mankarga 2 where one hole was drilled to test structures being worked by artisanal miners, and from Mankarga 1 where two holes were completed within coincident chargeability, resistivity and soil geochemistry anomalies as well active artisanal workings and mineralization encountered in historical shallow RAB drill holes.

Of the 20 holes and 2,500 metres planned for this Phase I RC program, only 11 holes and 1,108 metres were completed due to mechanical issues and the onset of the rainy season. Channel intends to continue drilling at Tanlouka after the rainy season to follow up on these results as well as to complete the Phase I testing of the targeted areas within the Mankarga Zone.

Channel Resources Ltd. maintains a rigorous quality control program involving the use of duplicate samples and certified blanks and standards from an accredited Canadian laboratory in every batch of 20 samples. Samples, taken from two metre intervals, are assayed using standard fire assay on a 50 gram charge and atomic absorption techniques at Abilab Burkina SARL (ALS Laboratory Group) in Ouagadougou, Burkina Faso and will undergo multi-element analysis by inductively coupled plasma mass spectrometry (ICP) at an ALS Chemex laboratory in Johannasburg, South Africa. The drilling program was supervised by John Adams P.Geo., a qualified person as defined by NI 43–101, who has reviewed the contents of this news release.

Channel Resources Ltd. is a Canadian TSX.V listed mineral exploration Company with an option to earn a 90% interest in the Tanlouka Gold Project in Burkina Faso, West Africa and an option to earn 100% in the Fox Creek Lithium / Potash Brine Project in Alberta. At Tanlouka, new mineralized zones have been discovered through a Phase 1 reverse circulation drilling program. At Fox Creek, a bulk sample of brine sourced from producing natural gas wells is undergoing process testing to determine the most efficient method of producing various industrial minerals from the brine, including lithium carbonate, potash, bromine and borates. The Company is financed to advance both projects through their current programs, and is actively searching for additional opportunities to expand its project portfolio.

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 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.

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