Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

January 20, 2011 08:58 ET

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

Intersections Include 12 Metres Grading 21.25 Grams Gold / Tonne ("g/t Au")

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 20, 2011) - Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased to report on drilling results from the first twelve holes, for a total of 2,335 metres, of a 10,000 metre Reverse Circulation ("RC") drilling program on the Tanlouka Gold Project in Burkina Faso, West Africa announced on November 22, 2010.

The objective of the drilling program is to follow up on discoveries made in the summer of 2010 and to test new targets within the five square kilometre Mankarga Zone, located in the south end of the 105 square kilometre Tanlouka permit.

Of the holes drilled thus far, two holes drilled in Mankarga 1 confirmed mineralization on either side of the discovery hole where an intersection of high grade gold was encountered. Seven additional holes confirmed extensions to Mankarga 5, a north-east trending structure where two discovery holes intersected multiple discrete mineralized horizons. Holes were also drilled to test targets in Mankarga 2 and Mankarga 1 North area, where a new mineralized structure was discovered coincident with the presence of geochemical and geophysical anomalies, as well as extensive artisanal workings.

A drill-hole location map showing current results together with the notable results from the 2010 drilling program is provided at: http://www.channelresources.ca/i/pdf/chutanlouka012011.pdf.

Mankarga 1 – Extension to High Grade Gold Mineralization

Of the two holes drilled in Mankarga 1, Tan10–RC12 was collared 50 meters northwest of the initial discovery hole Tan10-RC10, and Tan10-RC13 was collared 25 metres to the east. Significant intersections from these two holes are:

  Interval (metres)* Intercept* Average* Grade
Hole Number  From To (metres) (g/t Au)
         
Tan10–RC12 58 70 12 21.25
  94 102 8 0.86
         
Tan10–RC13 60 92 32 0.62
Includes 60 66 6 1.26
And 82 86 4 2.08

These results indicate that Mankarga 1 has at minimum a 75 metre strike length within an east-west trend rotated from a primary northwest structure. Additional drilling is planned in the short term for this zone including east and west step-out holes and the completion of a multi-hole cross section.

Mankarga 5 – Strike Length Extended to 550 Metres

A total of nine holes have now been drilled in Mankarga 5 along a structure indicated on surface by extensive artisanal workings over 800 metres along strike. Thus far in the current drilling program seven holes were drilled to methodically extend structures identified in 2010 drilling. Tan10-RC16 was drilled to the west of Tan10-RC 8 (discovery hole) to test the footwall of the main zone, two holes (Tan10-RC17 and Tan10-RC19) undercut the two discovery holes; one hole (Tan10-RC18) in-filled the zone between the two discovery holes; and, the remaining three holes (Tan10-RC20 to Tan10-RC22) tested the mineralized trend in 100m step-outs to the northeast. Significant intersections encountered in these seven new holes are as follows:

  Interval (metres)* Intercept* Average* Grade
Hole Number  From To (metres) (g/t Au)
         
Tan10–RC16 0 10 10 0.41
         
Tan10–RC17 80 108 28 0.42
  118 182 64 0.66
includes 134 172 38 0.88
and 134 142 8 1.46
         
Tan10–RC18 46 94 48 0.93
includes 60 76 6 4.69
  108 122 14 0.24
         
Tan10–RC19 104 142 38 0.32
         
Tan10–RC20 2 36 34 0.32
includes 2 14 12 0.60
  46 118 72 0.58
includes 70 96 26 0.99
and 82 96 14 1.34
  166 176 10 4.05
includes 166 168 2 18.70
         
Tan10–RC21 0 66 66 0.51
includes 36 46 10 1.47
  72 126 54 0.70
includes 88 100 12 1.52
  146 184 38 0.42
includes 174 180 6 1.63
         
Tan10–RC22 0 38 38 0.29
  42 122 80 0.35
includes 42 80 38 0.48
  140 146 6 0.40

Three subparallel mineralized zones can be discerned at Mankarga 5 that appear to merge and diverge through the length of the mineralized trend: a central 40 to 80 metre wide zone extending from at least section 000 to section 550NE with grades ranging from 0.60 g/t Au to over 1.00g/T Au; a 28 to 66 meter wide hanging wall zone extending at least from section 250NE to 550NE with grades ranging from 0.30 g/t Au to 0.52 g/t Au, and a 10 to 38 metre footwall zone extending from section 250NE to 550NE with grades ranging from 0.40 g/t Au to 4.00 g/t Au.

The water table in Mankarga 5 is relatively shallow and consequently samples drilled using the program's reverse circulation rig show a higher degree of "washing" compared with other target areas. Twinning of certain holes with a core drilling rig will be required to assess overall impacts of the washing on gold grades.

In all, approximately 550 metres of strike length of Mankarga 5 has now been partially drilled and mineralization has been found to extend for at least this length with the zone remaining open in the northeast and the southwest directions, both of which are being tested through additional drilling.

Mankarga 1 North – New Discovery

Hole Tan10-RC-23 is the first hole drilled in Mankarga 1 North, undercutting north-west trending artisanal workings. Significant intersections in this hole are tabulated below:

  Interval (metres)* Intercept* Average* Grade
Hole Number  From To (metres) (g/t Au)
         
Tan10–RC23 34 38 4 0.56
  58 70 12 4.32
including 58 60 2 25.00

The two principal mineralized intersections are within a silicified meta-volcanic unit and represent a new discovery for the Mankarga area. In addition to these intervals Tan10-RC23 intersected multiple six-metre wide zones from 122 metres to the bottom of the hole (192m) that each carry a grade of approximately 0.25g/T gold. Additional drilling is underway in this zone to further define the mineralized trend.

Mankarga 2

Two holes were completed in Mankarga 2 to test beneath artisanal pits and workings and to explain a wide zone of high chargeability. A series of predominantly low grade and narrow intersections were encountered within pyritic black schist. The extensive pyrite within the black schist from approximately 80 metres downhole to adequately explains the high chargeability of the area.

Exploration Program Expansion

Drilling within the Mankarga Zone of the Tanlouka Project is continuing, with more than 7,500 metres in approximately 55 holes remaining to be drilled and assessed. In addition, a more detailed soil sampling program to that conducted in 2007 will soon commence on the Mankarga 5 zone, with 20 meter spaced sample points along 50 metre spaced lines.

In addition, Channel has commissioned surveys to expand exploration through the entire Tanlouka permit area:

  • Airborne geophysics survey: A fixed-wing high resolution gradiometric magnetic and radiometric survey on 50m spaced lines is expected to commence in February. This survey involves the flying of almost 2,000 line kilometers over the entire permit and the resulting data will greatly assist in focusing exploration efforts in identifying additional mineralized structures.
  • High definition elevation model: Highly detailed topographical mapping using stereoscopic satellite imagery has been commissioned by Channel for the entire Tanlouka permit area. This survey will allow the accurate drafting of one metre spaced contours and, along with the airborne magnetic survey, will serve as a basis for a detailed structural analysis of the property.

Channel Resources Ltd. maintains a rigorous quality control program involving the use of duplicate samples and blanks and certified gold 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. 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.

* Drilling and reporting practices:

  • All holes reported are Reverse Circulation type (RC) with 2m samples for entire hole lengths
  • All hole collars are set to dip at -50° to their respective azimuths
  • Cut-off grade used is 0.10 g/T Gold for most of the quoted intersections
  • Internal dilution, where incorporated in the quoted interval, is generally up to a maximum of 20%
  • Intervals are hole length, true widths of mineralized zones have yet to be determined
  • No top cut has been applied to the grade

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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