Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

April 07, 2011 12:49 ET

Channel Resources Reports Metallic Screen Assay Results From Tanlouka Gold Project, Burkina Faso

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 7, 2011) - Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased to report on the results of metallic screen assays that were performed on selected intersections from previously reported drill holes in the Mankarga Zone of the Tanlouka Gold Project. These results confirm the presence of coarse gold in both Mankarga 1 and Mankarga 5 target areas, demonstrating the need for adjustments in sample analysis methods in future drill programs.

A total of 78 samples from three holes in the Mankarga Zone were re-submitted to Abilab Burkina SARL (ALS Laboratory Group) in Ouagadougou. The metallic screen method separates 1000 grams of the final prepared pulp over a 100-micron dry screen. Coarse (+100 micron) and fine (-100 micron) fractions are then analyzed separately using standard fire assay procedures and the weighted average grade is then computed. This sampling method more accurately assesses gold grades in rock types where coarse gold is present that would not necessarily be represented in the standard fire assay method.

Mankarga 1

Forty six samples (each representing a two-metre sample interval) were re-assayed from Tan10-RC12 and Tan 10-RC13 in the Mankarga 1 target area. The results from Tan10-RC12 show an average 50% increase in the metallic screen assays over those from standard fire assays for the 20 samples tested. An average increase of 10% was similarly indicated for the 26 samples tested from hole Tan10-RC13.

Of the total forty six samples, 38 samples from Mankarga 1 which graded lower than 1 gram per tonne gold (g/t Au) in the original fire assays showed an average 13% increase in grade and the remaining 8 samples, grading over 1 g/t Au, showed an average 18% increase in grade in the metallic screen assays. Please refer to Appendix 1 for a comparison of each sample analysis.

Mankarga 5

Thirty two samples were re-assayed from Tan10-RC21 in the Mankarga 5 target area and showed an average 10% overall increase in grade using the metallic screen assay method over the standard fire assay method. Twenty seven of these samples with a grade lower than 1 g/t Au showed an average increase of 6% in the metallic screen versus standard fire assay methods, while five samples that grade over 1 g/t Au showed a 27% increase in grade using the metallic screen method. Please refer to Appendix 1 for a comparison of each sample analysis.

Detailed methodology used ALS Chemex for Metallic Screen Analysis:

Sample Decomposition: Fire Assay Fusion (FA-FUS05)

Analytical Method: Gravimetric

The sample pulp is passed through a 100 micron (Tyler 150 mesh) stainless steel screen. Any material remaining on the screen (+) 100 microns is retained and analyzed in its entirety by fire assay with gravimetric finish and reported as the Au (+) fraction. The material passing through the screen (-) 100 micron fraction) is homogenized and two sub-samples (50g) are analyzed by fire assay with AAS finish (Au-AA26 and Au-AA26D). The average of the two AAS results is taken and reported as the Au (-) fraction result. All three values are used in calculating the combined gold content of the plus and minus fractions. The gold values for both the (+) 100 and (-) 100 micron fractions are reported together with the weight of each fraction as well as the calculated total gold content of the sample.

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.

Appendix 1

Mankarga 1    
TAN11-RC12    
Sample # Standard Fire Assay
(g/t Au)
Metallic Screen Analysis
(g/t Au)
1032 0.01 0.01
1033 38.2 50.2
1034 34.7 37.8
1035 51.2 92.5
1036 3.00 2.83
1037 0.08 0.12
1041 0.01 0.01
1042 0.08 0.01
1043 0.01 0.01
1044 0.20 0.18
1045 0.01 0.05
1046 0.02 0.07
1047 0.01 0.11
1051 0.02 0.01
1052 0.02 0.11
1053 0.01 0.11
1054 3.09 3.35
1055 0.07 0.05
1056 0.16 0.06
1057 0.12 0.07
Mankarga 1    
TAN11-RC13    
Sample # Standard Fire Assay
(g/t Au)
Metallic Screen Analysis
(g/t Au)
1135 0.37 0.88
1136 0.55 0.89
1137 0.05 0.23
1141 0.01 0.01
1142 0.03 0.33
1143 0.01 0.01
1144 0.01 0.01
1145 2.65 2.80
1146 0.01 0.00
1147 0.68 0.32
1148 0.11 0.11
1149 0.09 0.06
1150 0.20 0.19
1151 0.30 0.26
1152 0.35 0.28
1153 0.25 0.16
1154 0.01 0.01
1155 0.18 0.16
1156 1.56 1.98
1157 2.59 2.23
1161 0.24 0.30
1162 0.10 0.11
1163 0.14 0.17
1164 0.06 0.07
1165 0.09 0.08
1166 0.07 0.05
Mankarga 5    
TAN11-RC21    
Sample # Standard Fire Assay
(g/t Au)
Metallic Screen Analysis
(g/t Au)
B0061 0.24 0.20
B0062 0.17 0.15
B0063 0.47 0.33
B0064 0.47 0.67
B0065 0.50 0.51
B0066 0.43 0.46
B0067 0.46 0.45
B0068 0.31 0.41
B0069 0.73 0.79
B0070 0.05 0.05
B0071 0.02 0.01
B0072 0.03 0.01
B0073 0.32 0.42
B0074 0.51 0.65
B0075 0.05 0.05
B0076 0.11 0.13
B0077 0.25 0.26
B0081 0.70 0.68
B0082 0.72 0.79
B0083 0.96 1.12
B0084 2.21 2.53
B0085 0.26 0.35
B0086 0.38 0.23
B0087 1.12 1.77
B0088 2.32 2.73
B0089 2.85 3.41
B0090 0.67 0.41
B0091 0.71 0.41
B0092 0.45 0.49
B0093 0.41 0.01
B0094 0.69 0.30
B0095 0.23 1.04

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