Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

April 27, 2011 09:00 ET

Channel Resources Extends Mankarga 5 Strike Length to 1.85 Kilometres at Tanlouka Gold Project, Burkina Faso

Highlight: 48 Metres of 2.72 Grams Gold/Tonne ("g/t Au") Including 20 Metres of 5.76 g/t Au

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 27, 2011) - Channel Resources Ltd. (TSX VENTURE:CHU) ("Channel" or the "Company") is pleased to report on further results from its 10,000 metre Reverse Circulation ("RC") drilling program on the Tanlouka Gold Project in Burkina Faso, West Africa. Reported results are from the Mankarga 5 target area within the five square kilometre Mankarga Zone, located in the south end of the 105 square kilometre Tanlouka permit.

Channel has further extended the overall strike length of the Mankarga 5 target area from 1,500 metres, as reported in its last news release on March 24, 2011, to 1,850 metres. The deposit remains open along strike in both directions as well as to depth, and results indicate that it can be advanced to the resource estimation stage in the near term. Of significant note is Tan11-RC72, drilled on the southernmost section 800SW, drilled to the northwest of Tan11-RC55, which in a news release dated March 24, 2011 showed no significant results. Strong mineralization in RC72, however, reinforces the theory that the deposit is turning to a more westerly orientation in that area, with further potential to increase the overall strike length.

Results presented from Mankarga 5 are from 16 holes for an aggregate 1,950 metres of drilling. A map of drill hole locations in Mankarga 5 is available at: http://www.channelresources.ca/i/pdf/man5map042711.pdf

Significant intersections encountered in these recent holes are shown below from the southwestern-most section line moving to the northeast:

SectionHole NumberInterval (metres)*Intercept*Average* Grade
FromTo(metres)(g/t Au)
800SWTan11–RC7242102601.15
includes5466122.33
and788682.72
650SWTan11–RC71864561.21
includes5658215.55
788680.15
550SWTan11–RC73110158482.72
includes122142205.76
16817680.16
500SWTan11–RC746072120.16
90162720.74
includes94128341.24
400SWTan11–RC756094340.44
includes606661.21
Tan11–RC76030300.45
450NETan11–RC70142198561.00
includes152176241.61
550NETan11–RC69250481.07
includes618121.66
750NETan11–RC61218161.58
2882540.39
850NETan11–RC62068681.07
includes1854361.65
Tan11–RC6876106300.59
110120100.19
950NETan11–RC633066360.18
7290180.30
Tan11–RC65022220.48
includes0661.10
2890620.24
Tan11–RC6601301300.79
includes624181.62
and404665.57
1050NETan11–RC64243060.27
4870220.20
788460.25
Tan11–RC674664180.86
includes465481.55
84110260.48

Mineralization in Mankarga 5 is hosted by a shear zone that penetrates a variety of rock types including altered metasedimentary and metavolcanic rocks with some gabbroic components and a granodioritic rock that contains some of the deposit's strongest grades. To date only one full section (650NE) has been completed from hanging wall to footwall, showing a 200 meter wide mineralized envelope.

Current Drill Program Status and Follow Up

A total of 65 holes have now been drilled and reported in the Mankarga Zone during this program for a cumulative length of 8,762 meters. Together with the two Phase I discovery holes reported in August of 2010, a total 44 holes have been drilled into the Mankarga 5 structure with 40 holes intersecting significant mineralization. A further 1,368 meters in 14 holes have been completed in Mankarga 5 with assays still pending, including two vertical water wells to supply water for the planned diamond drill program.

Holes for which results are pending were mostly drilled to test for northeast extensions to the Mankarga 5 zone as far to the Northeast as section 1550NE, which could extend the deposit to a total length of 2.35 kilometers.

"Our drilling continues to expand the known body of mineralization at Mankarga 5 with the target remaining open along strike in both directions and to depth," commented Colin McAleenan, Channel's President and C.E.O. "With the completion of financing (as announced on April 8, 2011) expected in the coming weeks, planning is underway for a 20,000 metre (approximate) definition core drilling program to commence shortly."

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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