Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

July 04, 2012 09:00 ET

Channel Resources Reports Final Drilling Results for Mankarga 5 Resource Estimate at Tanlouka Gold Project, Burkina Faso

Highlights include 37.5 metres of 1.38 grams gold per tonne ("g/t Au") and 25.5 metres of 1.47 g/t Au

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 4, 2012) - Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased to report final assay results from its 15,400 metre core definition drilling program on the Mankarga 5 gold deposit at the Tanlouka Gold Project ("Tanlouka") in Burkina Faso, West Africa.

Results reported in this release are from infill holes along nominal 100 metre spaced lines targeting previously intersected mineralized structures.

The Mankarga 5 core-drilling program was completed in February of 2012, with over 15,400 metres in 71 holes drilled, assay results for all of which have now been reported. This program's results, together with those of 58 RC holes for 7,096 metres drilled previously on Mankarga 5 will form the basis of a maiden resource estimate for the deposit currently being prepared by AMEC Americas Ltd.

The drilling program has so far delineated a mineralized zone that is over two kilometres long and up to 300 metres wide on the northeast-trending Mankarga 5 structure. The main objectives of this program have been to provide a geological and structural context for the deposit, to further expand the zone and to support the deposit's maiden resource estimate. Mineralized zones 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 believed 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 maximum vertical depth of approximately 260 metres in the current program.

Detailed results from the eight holes reported in this release are presented in order of their location on sevent 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/CHUmap070412.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.

Exploration of the Tanlouka Project Advancing Quickly

Channel's activities at the Tanlouka gold project are focused on both advancing the Mankarga 5 deposit as quickly as possible through to feasibility and development, and demonstrating the exploration potential of the Mankarga 5 deposit and the remainder of the permit. The Company expects to report on numerous work programs in the near future, including:

  • Metallurgical testing on oxidized and non-oxidized samples from the Mankarga 5 deposit;
  • Maiden resource estimate for the Mankarga 5 deposit;
  • 2,000 metres of core drilling recently completed in the area of the Mankarga 1 target, to follow up on previous high-grade discovery holes drilled in 2010, and also to investigate possible mineralized continuity between Mankarga 5 and Mankarga 1; and,
  • Soil sampling programs underway on the Manesse and Tanawaka target areas to the north of the Mankarga Zone on the 79 square kilometre Tanlouka permit.

Future drill programs and other exploration activities are being planned for Mankarga 5 and other targets on the Tanlouka project, based on the results of current programs and will be announced as the news becomes available.

Note re QA/QC Testing Procedures

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 ACTLABS - Burkina Faso SARL, SGS Burkina Faso SA and Abilab Burkina SARL (ALS Laboratory Group) 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 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.

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
Interval (metres) Intercept Weighted Average Grade
Hole Number From To (metres) (g/t Au)
Section 700 SW
Tan12-DD66 15.0 19.5 4.5 0.60
Hole length 202.0m 42.0 46.5 4.5 0.55
-50°/120° azimuth 73.0 101.5 28.5 0.79
Section 400 SW
Tan11-DD50 89.0 117.5 28.5 1.21
Hole length 183.5m includes 93.5 95.0 1.5 11.3
-50°/120° azimuth and 114.5 116.0 1.5 4.24
Section 300 SW
Tan11-DD48 45.5 59.0 13.5 0.28
Hole length 180.5m 111.5 123.5 12.0 0.73
-50°/120° azimuth 128.0 132.5 4.5 0.62
Section 200 SW
Tan11-DD46 18.5 23.0 4.5 0.64
Hole length 234.0m 97.5 103.5 6.0 1.33
-50°/120° azimuth includes 102.0 103.5 1.5 4.21
145.5 151.5 6.0 1.09
153.0 198.0 45.0 0.52
includes 180.0 189.0 9.0 1.50
Tan12-DD69 16.5 27.0 10.5 1.84
Hole length 180.0m includes 21.0 22.5 1.5 7.77
-50°/120° azimuth 75.5 106.5 31.0 0.62
Section 150 NE
Tan11-DD38 1.5 58.0 56.5 0.58
Hole length 152.0m includes 50.5 52.0 1.5 5.21
-50°/120° azimuth 59.5 71.5 12.0 0.22
82.0 95.5 13.5 0.28
Section 450 NE
Tan11-DD39 0 54.5 54.5 0.53
Hole length 155.0m 57.5 95.0 37.5 1.38
-50°/120° azimuth includes 86.0 87.5 1.5 5.12
Section 550 NE
Tan12-DD41 13.5 24.0 10.5 0.37
Hole length 152.0m 71.0 96.5 25.5 1.47
-50°/120° azimuth includes 84.5 87.5 3.0 2.86
and 90.5 95.0 4.5 3.07

Drilling, sampling and reporting practices:

  • All hole collars are set to dip at -50° to their respective azimuths.
  • Core holes are sampled geologically with a maximum sample interval of 1.5 metres.
  • "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 2.0.
  • 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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