Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

March 01, 2011 09:00 ET

Channel Resources Extends Mankarga 5 Deposit Strike Length to 950 Metres at Tanlouka Gold Project, Burkina Faso

Intersections include 102 metres of 1.52 grams gold / tonne ("g/t Au")

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2011) - Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased to report on results from its ongoing 10,000 metre Reverse Circulation ("RC") drilling program on the Tanlouka Gold Project in Burkina Faso, West Africa. Reported results are from drilling focused on the Mankarga 5 and Mankarga 1 North target areas within the five square kilometre Mankarga Zone, located in the south end of the 105 square kilometre Tanlouka permit.

Mankarga 5 Target Area

Results presented are from thirteen holes that include step-out holes Tan11-RC40 and Tan11-RC41 drilled on sections 750NE and 850NE respectively, demonstrating continuity of the mineralization to at least the 850NE line. Step-outs drilled in the southwest direction (Tan11-RC37 and Tan11-RC38) on section 100SW establish a minimum strike length of 950 meters. Six holes were also drilled on line 650NE and demonstrate a width of the mineralized envelope of up to 200 metres. The zone remains open to the northeast, the southwest and to-depth.

A map of drill hole locations in Mankarga 5 is available at: http://www.channelresources.ca/i/pdf/chutanloukamap022811.pdf

Significant intersections encountered in these holes are as follows:

    Interval (metres)* Intercept* Average* Grade
Section   Hole Number From To (metres) (g/t Au)
           
650NE Tan11–RC31 52 86 34 0.64
  includes 72 84 12 0.92
           
650NE Tan11–RC32 52 82 30 0.63
  includes 70 76 6 2.23
           
650NE Tan11–RC33 0 12 12 0.23
    36 44 8 0.51
    64 90 26 0.63
  includes 74 82 8 1.28
  Hole ends in mineralization at 90 metres depth
           
650NE Tan11–RC34 30 38 8 0.55
    52 72 20 0.37
           
100SW Tan11–RC37 32 70 38 0.78
  includes 36 50 14 1.46
           
100SW Tan11–RC38 6 14 8 0.25
    32 40 8 1.03
           
450NE Tan11–RC39 26 128 102 1.52
  includes 36 68 32 3.00
           
750NE Tan11–RC40 4 16 12 0.30
    64 116 52 1.44
  includes 86 94 8 4.81
           
850NE Tan11-RC41 0 96 96 0.44
  includes 52 64 12 1.21
           
350NE Tan11-RC42 78 158 80 0.70
  includes 90 118 28 1.30
  and 150 158 8 1.02
Holes Tan11-RC30, Tan11-RC35 and Tan 11-RC36 encountered no significant mineralization.

Drilling thus far in Mankarga 5 has encountered mineralization hosted in sheared and altered metasedimentary and metavolcanic rocks with some gabbroic components. However, mineralization intersected in holes Tan11-Tan11-RC39 through RC41 is hosted in granodioritic rock with Tan11-RC39 yielding the strongest intersections yet encountered in Mankarga 5.

"These results demonstrate that the potential for Mankarga 5 to host a significant gold resource has increased dramatically," stated Colin McAleenan, Channel's President and C.E.O. "Generally speaking, the strength of mineralization within shear zones is often enhanced in and around rocks of contrasting competency. The intersection of a mineralized intrusive-like body at the northeast end of Mankarga 5, together with the increasing strike length and width of the deposit, are excellent indicators of the area's further potential."

Mankarga 1-North

Six holes (Tan11-RC24 to Tan11-RC29 inclusive) were drilled in Mankarga 1-North to follow-up on mineralization intersected in Tan11-RC23, as reported on January 20, 2011 with 12 metres grading of 4.32 g/t Au. These follow-up holes tested the zone for continuity 250 metres to the northwest and 100 metres to the southeast of the initial hole as well as potential parallel structures in the area. 

A series of predominantly low grade intersections were encountered in all of these holes and in some cases multiple such zones were encountered with the best intersections being 12 metres of 0.56 g/t Au (Tan11-RC-28) and 20 metres of 0.28 g/t Au (Tan11-RC-26). These zones remain open to the northwest, southeast and to depth.

Mankarga 1 and Mankarga 5 Follow Up Drilling

To date, Channel has reported results from 4,557 metres of drilling in 31 holes, or less than half of the 10,000 metre reverse circulation drilling program that is being carried out on the Mankarga Zone.

A further 12 holes (1,512 metres), with results pending, have been drilled in Mankarga 1 area, which has been characterized by high-grade intersections encountered in previous holes. The objective of drilling in this area is to investigate a potential fault offset to the east, and further extensions to the northwest.

In addition, a further 17 holes have either been drilled with results pending or are planned in Mankarga 5 with the objective of further extending the strike length to section 1150NE and 200SW. Further to the southwest, three holes are being drilled to test a magnetic feature coincident with gold-in-soil anomalies, which could potentially extend the deposit to a total length of almost two kilometres.

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 is 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 which has an option to earn a 90% interest in the Tanlouka Gold Project in Burkina Faso, West Africa, the terms of which the Company has already satisfied, and an option to earn 100% in the Fox Creek Lithium / Potash Brine Project in Alberta. At Tanlouka, Channel has recently discovered multiple mineralized zones that are now being explored and expanded through a 10,000 metre 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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