Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

February 06, 2012 09:00 ET

Channel Resources Infill Drilling Continues to Define Mankarga 5 Zone at Tanlouka Gold Project, Burkina Faso

Highlights Include 58.5 Metres of 1.03 Grams Gold/Tonne ("g/t Au") and 35.0 Metres of 1.25 g/t Au

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 6, 2012) - Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased to report assay results from a 15,000 metre core-definition drilling program on the Mankarga 5 gold deposit at the Tanlouka Gold Project ("Tanlouka") in Burkina Faso, West Africa.

This program has been designed to follow-up a reverse circulation ("RC") drilling program (57 holes drilled for a total of 7,100 metres) completed earlier in the year on the northeast-trending Mankarga 5 structure, and has so far delineated a mineralized zone that is 2.35 kilometres long and up to 250 metres wide. The main objectives of this program are to provide a geological and structural context for the deposit, to further expand the zone and to support the deposit's maiden resource estimate, which is expected in the spring of 2012. Mineralized zones reported in this release are steeply dipping to the northwest, the majority extending from surface, and reported widths for all holes drilled at -50 degrees to azimuth 120 degrees (southeast) are thought to be in the range of 80 - 90% of true width. The deposit remains open along strike and to-depth, with mineralization encountered to a minimum vertical depth of approximately 200 metres in the current program.

On Section 500SW, hole Tan11-DD24 intersected the main mineralized zone at about 130 metres below surface, demonstrating comparable overall width with intersections in previously reported holes from shallower depths. Several newly discovered structures were also encountered close to surface with grades up to 0.96 g/t Au over 9.6 metres.

Hole Tan11-DD30 drilled on Section 300SW intersected the main zone at an approximately 140 metre vertical depth with an intersection of 0.41 g/t Au over 29.6 metres, including intersections of 0.96 g/t Au over 3.9 metres and 0.71 g/t Au over 6.7 metres.

Two holes reported from Section 350NE, Tan11-DD23 and DD25 both intersected mineralization of comparable widths to those encountered previously on the same section in holes Tan11-RC36, RC20, and RC42. Tan11-DD25, inclined 65° at azimuth 120° due to surface constraints, intersected 1.03 g/t Au over 58.5 metres including 2.32 g/t Au of 9 metres and 1.94 g/t Au over 6 metres from 39 metres downhole depth.

On Section 550NE, hole Tan11-DD31 intersected the main zone at approximately 170 metres vertical depth with an intersection of 1.20 g/t Au over 15 metres including 2.19 g/t Au over 3 metres, below intersections of the same zone in previously drilled hole Tan11-DD03 (0.64 g/t Au over 66 metres including 1.64 g/t Au over 15.8 metres). Several hanging-wall structures were also encountered closer to surface in Tan11-DD31. Hole Tan11-DD41 (results pending) has been collared on the same section to the south-east of Tan11-DD31 to test for near-surface expressions of the main structure and also for footwall mineralization.

Hole Tan11-DD49, drilled on Section 750NE, intersected the main zone at over 200 metres vertical depth with 1.25 g/t Au over 35 metres together with numerous hanging wall structures encountered closer to surface. Hole DD63 was drilled near the east end of the section (with results pending) to test for continuity at shallower depths of the footwall structures encountered in all core holes on this wide section.

The core drilling program has now been completed, with over 15,441 meters in 71 holes drilled. Assay results have now been reported for an aggregate of 8,516 metres of core (55% of total program) from 37 holes, including 1,743 meters from the 7 holes reported in this release.

Detailed results from the seven holes reported in this release are presented in order of their location on eight sections on the Mankarga 5 grid in Appendix A to this release, and can be viewed on a drill hole location map presented on the Company's website at http://www.channelresources.ca/i/pdf/CHUmap020612.pdf. Mankarga 5 cross sections are also available for download at http://www.channelresources.ca/s/Tanlouka.asp. Please refer to Channel's drilling, sampling and assay reporting practices below the results tables for further information on how the results are reported.

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. Core samples are assayed using standard fire assay techniques on a 50 gram charge with an atomic absorption finish by SGS Burkina Faso SA in Ouagadougou, Burkina Faso. RC samples discussed in this release were assayed using the same methods at Abilab Burkina SARL (ALS Laboratory Group) in Ouagadougou. 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.

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.

APPENDIX A - Significant Assay Results

Presented in Order of Section Line from SW to NE

Hole Number Interval (metres) Intercept Weighted
Average
Grade
From To (metres) (g/t Au)
Section 500 SW
Tan11-DD24 8.0 12.5 4.5 0.27
Hole length 260m 20.0 27.5 7.5 0.56
-50°/300° azimuth 30.5 40.1 9.6 0.96
includes 36.5 38.0 1.5 3.25
111.9 119.4 7.5 1.62
includes 115.0 115.4 0.4 23.50
121.8 128.0 6.2 0.29
140.2 186.5 46.3 0.43
Section 300 SW
Tan11-DD29 8.0 9.5 1.5 1.14
Hole length 80m * Hole abandoned at 80 metres due to ground conditions - target at 180 metres
-50°/120° azimuth
Tan11-DD30 104.0 107.0 3.0 1.56
Hole length 272m 113.0 117.5 4.5 0.27
-50°/120° azimuth 119.0 126.5 7.5 0.30
137.0 146.0 9.0 0.20
164.0 166.2 2.2 0.72
173.0 202.6 29.6 0.41
includes 176.0 179.9 3.9 0.96
195.5 202.2 6.7 0.71
Section 350 NE
Tan11-DD23 83.7 93.5 9.8 0.29
Hole length 302m 99.5 130.3 30.8 0.56
-50°/120° azimuth 135.2 150.5 15.3 0.69
includes 135.2 137.0 1.8 3.88
155.0 174.2 19.2 1.23
includes 162.5 170.0 7.5 2.62
188.4 212.0 23.6 0.63
includes 198.5 200.9 2.4 1.43
and 204.5 207.5 3.0 1.73
215.1 219.5 4.4 0.25
Tan11-DD25 0.0 7.5 7.5 0.64
Hole length 201m 15.0 30.0 15.0 0.29
-65°/120° azimuth 31.5 37.5 6.0 0.28
39.0 97.5 58.5 1.03
includes 39.0 48.0 9.0 2.32
and 60.0 66.0 6.0 1.94
Section 550NE
Tan11-DD31 62.0 68.6 6.6 0.39
Hole length 272m 70.0 79.5 9.5 0.17
-50°/120° azimuth 101.5 122.0 20.5 0.40
136.6 146.7 10.1 0.49
includes 136.6 138.5 1.9 1.18
156.6 161.0 4.4 0.42
201.5 207.5 6.0 0.26
219.5 234.5 15.0 1.20
includes 227.0 230.0 3.0 2.19
Section 750NE
Tan11-DD49 61.5 65.0 3.5 0.84
Hole length 356m 84.5 89.0 4.5 0.33
-50°/120° azimuth 107.0 110.0 3.0 1.19
129.5 134.0 4.5 0.29
140.0 144.5 4.5 0.23
162.5 164.0 1.5 1.70
170.0 177.5 7.5 0.40
180.3 189.7 9.4 0.45
240.5 264.5 24.0 0.22
266.0 301.0 35.0 1.25
includes 284.0 285.5 1.5 6.49
312.5 339.5 27.0 0.23

Drilling, sampling and reporting practices:

  • All hole collars are set to dip at -50° to their respective azimuths except hole Tan11-DD25 which, due to surface conditions, was drilled at an inclination of 65°.
  • Core holes are sampled geologically with a maximum sample interval of 1.5m.
  • "Mineralized rock" is defined as rock with a grade of over 0.10 g/t Au.
  • "Significant assay results" is defined as samples, or series of consecutive samples, with grade thickness (i.e. weighted average gold grades multiplied by their intervals) of greater than 1.0.
  • The amount of internal waste (i.e. with a grade of less than 0.10 g/t Au) included in a reported mineralized interval does not exceed 10%.
  • No top cut has been applied to the individual grades before weighted average grades have been calculated.
  • Unless otherwise stated, reported intersections are downhole lengths. True widths, other than as estimated on each section, shall be determined once geological modeling of the zone has been completed.

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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