Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

September 08, 2010 09:20 ET

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

38 Metres Grading 3.09 Grams Gold / Tonne ("g/t Au") Including 16 Metres Grading 4.8 g/t Au

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2010) - Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased to report on the second set of drilling results from a Phase I Reverse Circulation ("RC") drilling program on the Tanlouka Gold Project in Burkina Faso, West Africa. Results presented are from the final three holes of the program that were drilled before the onset of the region's seasonal rainy period and indicate that a second discovery has been made in addition to that reported on August 17, 2010.

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. An initial discovery was previously reported on the 'Mankarga 5' target on a northeast trending structure characterized by regional gold in soil anomalies and extensive artisanal workings.

A new discovery has now been made in the Mankarga 1 target area, situated approximately 1,300 metres due-west of the Mankarga 5 hole T2010-8. Two holes were collared in Mankarga 1 to investigate coincident chargeability, resistivity and gold-in-soil anomalies as well active artisanal workings and mineralization encountered in historical shallow RAB drill holes. An updated drill-hole location map is provided at http://www.channelresources.ca/i/pdf/chu_tanlouka_Phase1results.pdf.

          Average
Hole     Interval (metres) Intercept Grade
Number Azimuth Dip From To (metres) (g/t Au)
             
T2010-10 180 -50 54 92 38 3.09
including     56 72 16 4.80
and     74 88 14 2.82
including     82 84 2 12.35
             
T2010-11 230 -50 10 18 8 0.14
      24 34 10 0.30
      40 52 12 0.19
      62 70 8 0.12
NB: True widths have not yet been determined

Hole T2010-10 was collared approximately 10 metres north of the east-west trending shallow RAB drill fence and was drilled to 104 metres depth towards azimuth 180 degrees i.e. at right angles to the shallow RAB drill fence and parallel to the north-south trending resistivity/chargeability anomaly. This hole was oriented to test an east-west trending sheared and silicified gabbroic unit that is parallel to the magnetic fabric and is being actively exploited by artisanal miners.

Hole 2010-11 was collared 135 metres north-west of T2010-10, still within the north-south trending chargeability-resistivity anomaly and was drilled towards the southwest to test a different set of northwest trending artisanal mine workings. Results indicate the presence of disseminated, low-grade mineralization within multiple zones up to 12 metres wide.

"The discovery of a second mineralized zone at Mankarga is extremely significant for both the Tanlouka project and for Channel," commented Colin McAleenan, President and CEO of the Company. "After compiling these drilling results with airborne and ground geophysics survey data we have significantly advanced our understanding of the mineralization controls in the area. We believe this knowledge will help guide follow-up drilling on these discoveries and greatly improves the chances of success with new drilling campaigns at Tanlouka."

Other Targets

Hole T2010-9 was drilled into the Mankarga 2 target to test an area of significant artisanal workings. The target depth of 150 metres for this hole was not reached due to mechanical issues and may have failed to penetrate the target structure. However, results for the 122 metres completed indicate that some narrow anomalous gold zones were intersected.

Only half of the planned Phase I holes were completed before the program was terminated due to the onset of seasonal heavy rains. Holes planned but not drilled include two to three more holes in Mankarga 2, four holes in Mankarga 1 North, two to three holes in Mankarga 1 South. Some adjustment of the targets of the remaining holes will likely be made in light of the two new gold discoveries at Mankarga 1 South and Mankarga 5 but the reconnaissance nature of the program will be retained when the program resumes in November.

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 Johannesburg, 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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