Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

March 24, 2011 12:00 ET

Channel Resources: Mankarga 5 Gold Deposit Strike Length Now 1.5 Kilometres at Tanlouka Gold Project, Burkina Faso

Intersections Include 70 Metres of 2.10 Grams Gold / Tonne ("g/t Au")

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 24, 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 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

Channel has extended the overall strike length of the Mankarga 5 target area from 950 metres, as reported in its last news release on March 1, 2011, to 1,500 metres. The deposit remains open along strike and to depth, and results to-date indicate that it can be advanced to the resource estimation stage in the near term.

Results presented from Mankarga 5 are from six step-out holes for an aggregate 744 metres of drilling that tested as far as 700 metres to the south-west of Tan11-RC37 and Tan11-RC38, the southernmost holes previously reported, demonstrating that mineralization extends from line 850NE to at least line 650SW. A map of drill hole locations in Mankarga 5 is available at: http://www.channelresources.ca/i/pdf/CHUmap032411.pdf

Significant intersections encountered in these recent holes are as follows:

Section Hole Number Interval (metres)* Intercept* Average* Grade
    From To (metres) (g/t Au)
           
650SW Tan11–RC56 96 134 38 2.46
  includes 122 126 4 18.40
  Hole ends in mineralization at 134 metres depth
           
550SW Tan11–RC57 22 74 52 1.18
  includes 30 32 2 17.10
    84 116 32 1.90
  includes 102 106 4 13.37
           
500SW Tan11–RC58 0 70 70 2.10
  includes 12 26 14 6.23
    98 124 26 0.31
  Hole ends in mineralization at 124 metres depth
           
200SW Tan11–RC59 74 120 46 0.27
  includes 76 82 6 0.63
  Hole ends in mineralization at 120 metres depth
           
200SW Tan11–RC60 0 42 42 0.37
  includes 6 16 10 0.71
    52 68 16 0.27

Hole Tan11-RC55 encountered no significant mineralization.

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.

"Mankarga 5 is developing into what we expect will be an important deposit, showing a consistency and scale of mineralization that could rival some of the gold deposits that are now in development or already in production in Burkina Faso," commented Colin McAleenan, Channel's President and C.E.O. "We continue to delineate the zone with RC drilling on a nominal 100 metre by 50 metre pattern and expect to add core drilling in the near future to enhance our understanding of the deposit's geology and structure as well as to infill-drill the deposit ahead of a NI43-101 resource estimate. The coring program will also provide definitive grade information for the deposit which will be especially important in areas where we believe a shallow water table has contributed to some gold losses from the RC drill samples."

A total of 26 holes have now been drilled and reported in Mankarga 5 during this program for a cumulative length of 3,573 meters. Together with the two Phase I discovery holes reported in August of 2010, a total 24 holes of 28 drilled in the zone intersected significant mineralization.

Mankarga 1

Twelve holes (Tan11-RC43 to Tan11-RC54 inclusive) were drilled in Mankarga 1 to follow various indications of mineralized structure and artisanal mine workings to the East and Northwest of holes Tan10-RC10, Tan10-RC12, and Tan10-RC13, which had intersected strong showings of mineralization including:

  • 12 metres grading 21.25 g/t Au in Tan10-RC12, as reported on January 20, 2011, and
  • 38 metres grading 3.09 g/t Au in Tan10-RC10, as reported on September 8, 2010.

The follow-up holes tested the zone for continuity up to 375 metres to the northwest of Tan10-RC12 and in a suspected offset zone 275 metres to the east of Tan10-RC13. Eight of the holes drilled, Tan11-RC43, 45, 46, 47, 48, 51, 52 and 54 encountered weak mineralization in relatively narrow zones, with the exception of the following:

Hole Number Interval (metres)* Intercept* Average* Grade
  From To (metres) (g/t Au)
         
Tan11–RC51 24 26 2 1.50
  30 38 8 0.58
  46 172 126 0.43
includes 60 68 8 0.90
and 94 108 14 0.79
and 118 128 10 0.71
         
Tan11–RC52 0 4 4 1.02
  12 18 6 1.70
  46 52 6 11.39
includes 48 50 2 32.50

These results confirm the complexity of Mankarga 1's mineralized structures; for example, hole Tan11-50 was drilled to undercut the high-grade mineralization encountered in Tan10-RC12 but did not intersect significant mineralization just 40 metres down the inferred dip of the zone. It is expected that the pending results from the high resolution airborne magnetic survey in combination with subsequent core drilling will help to better understand this zone.

Current Drill Program Status and Follow Up

To date, Channel has reported results from 6,813 metres of drilling in 49 holes. A further 1,050 meters in 10 holes have been completed in Mankarga 5, with assays pending. In total, 7,863 metres in 59 holes of the contracted 10,000 metre RC program have been drilled.

Most of the assays pending are from holes drilled to test Mankarga 5 for mineralization as far to the north east as section 1150NE, which could potentially extend the deposit to a total length of approximately two kilometers. Holes have also tested the area around the eastern ends of sections 450NE and 550NE in the vicinity of hole Tan11-RC39 which returned the best intersection to-date from Mankarga 5, 102 meters grading 1.52 g/t gold within a mylonitized intrusive rock.

The balance of the drilling program will be focused mostly on further delineating the Mankarga 5 deposit, including extensions to the southwest and northeast as well as completing additional cross sections.

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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