Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

September 14, 2011 09:00 ET

Channel Resources Reports Results From Core Drilling Program on Mankarga 5 Deposit at Tanlouka Gold Project, Burkina Faso

Highlight: 70 metres of 1.99 grams gold / tonne ("g/t Au") including 13.5 metres of 6.47 g/t Au

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 14, 2011) - Channel Resources Ltd. ("Channel" or the "Company")(TSX VENTURE:CHU) is pleased to report initial assay results from a 15,000 metre core definition drilling program undertaken on the Mankarga 5 gold deposit at the Tanlouka Gold Project ("Tanlouka") in Burkina Faso, West Africa.

This first program of core drilling at Tanlouka has been designed to follow-up on 7,100 metres of reverse circulation ("RC") drilling in 57 holes on the Mankarga 5 structure that comprised the bulk of a 10,000 metre RC drilling program completed earlier in the year. Drilling completed in RC programs to-date at Mankarga 5 has delineated a 1,850 metre long and up to 200 metre wide, northeast trending mineralized zone that remains open along strike in both directions and to-depth.

The main objectives of the ongoing core drilling program are to provide geological and structural context for the deposit, to further expand the zone and to support the deposit's first resource estimate, which is expected to be completed in the first quarter of 2012. To-date a total of 7180 metres in 32 core holes have been drilled in this program. Available assay results from an aggregate of 1,764.5 metres of core from 8 holes are presented below in order of their location on the Mankarga 5 grid, and can be viewed on a drill hole location map presented on the Company's website at www.channelresources.ca/i/pdf/CHUmap091411.pdf. Please refer to Channel's drilling, sampling and assay reporting practices below for further information on how these results are reported.

Hole Number Interval (metres) Intercept Weighted
Average
Grade
From To (metres) (g/t Au)
Section 800SW
Tan11-DD17 59.0 129.0 70.0 1.99
-50°/300° azimuth includes 68.0 81.5 13.5 6.47
161.5 164.5 3.0 1.69
Section 450 NE
Tan11-DD01 0.0 64.0 64.0 0.41
-50°/120° azimuth 69.3 168.0 98.7 0.92
includes 110.0 140.0 30.0 1.15
and 146.0 158.0 12.0 1.94
includes 149.5 150.0 0.5 14.90
Tan11-DD02 32.0 140.0 108.0 1.10
-50°/300° azimuth includes 40.0 60.0 20.0 2.32
(twin of Tan11-RC39) and 65.8 90.0 24.2 1.81
146.0 196.0 50.0 0.43
includes 158.3 159.0 0.7 7.86
202.0 213.0 11.0 0.38
219.4 238.0 18.6 0.78
includes 219.4 228.0 8.6 1.20
Section 550 NE
Tan11-DD03 9.0 61.5 52.5 1.20
-50°/120° azimuth includes 36.0 40.5 4.5 5.67
includes 39.0 40.5 1.5 15.10
and 60.0 61.5 1.5 11.70
111.0 177.0 66.0 0.64
includes 144.2 145.0 0.8 8.20
and 152.2 168.0 15.8 1.64
Tan11-DD05 6.0 75.0 69.0 0.63
-50°/300° azimuth includes 12.0 19.5 7.5 2.08
(twin of Tan10-RC22) and 40.8 45.0 4.2 1.08
and 61.5 63.0 1.5 5.32
80.0 107.0 27.0 0.32
114.5 128.4 13.9 0.23
131.4 150.5 19.1 0.41
166.8 176.2 9.4 0.24
200.2 207.8 7.6 5.35
205.5 207.0 1.5 25.30
Section 650 NE
Tan11-DD04 64.5 70.5 6.0 0.21
-50°/300° azimuth 103.3 106.8 3.5 0.37
115.5 180.0 64.5 0.77
includes 119.0 130.3 11.3 1.32
and 161.2 166.5 5.3 2.24
184.0 195.0 11.0 2.73
includes 184.9 186.0 1.1 24.6
203.5 250.0 46.5 0.84
includes 210.5 211.0 0.5 43.60
Tan11-DD07 0.0 42.0 42.0 0.53
-50°/120° azimuth includes 4.5 12.0 7.5 1.19
69.0 90.0 21.0 0.59
includes 84.0 87.0 3.0 1.41
97.5 106.0 8.5 0.91
120.0 127.5 7.5 0.54
138.0 178.5 40.5 0.55
includes 156.0 163.5 7.5 1.10
Section 750 NE
Tan11-DD06 1.5 9.5 8.0 0.58
-50°/120° azimuth 13.5 21.0 7.5 0.99
24.0 78.0 54.0 0.70
includes 43.0 44.8 1.8 6.03
111.8 121.5 9.7 0.24
126.0 148.5 22.5 0.25

The drill core has provided much more information on the structure of mineralization at Mankarga 5 than was available from cuttings produced from RC holes. Measurements of structural angles and correlations from several cross sections indicate that the mineralized zone dips steeply to the northwest rather than steeply to the southeast as previously thought. In order to provide better angles of intersection with the mineralized zone, the orientation for the majority of holes being drilled on the deposit will now be inclined at -50° to the southeast i.e. in the opposite direction to most of the previously drilled holes.

Hole Tan11-DD01 Tan11-DD03 and Tan11-DD006, each with an azimuth of 120°, are inclined at opposing angles, or "scissored", to other holes on their respective sections, which are inclined to an azimuth of 300°. Correlations between the scissored holes and previously drilled RC holes indicate horizontal widths of the mineralized zone ranging from approximately 150 to 200 metres from section 450NE to 750NE, with mineralization extending to at least 170 metres below surface on section 450NE. The strongest mineralization and a sharp limit to the mineralization is demonstrated on the southeastern (footwall) side of the zone on sections 450NE, 650NE and 800SW.

Assay laboratories in Burkina Faso are experiencing a significant backlog of samples due to the large amount of exploration activity underway throughout the country and hence processing times for results have slowed.

Comparison of Twinned Holes

Several holes have been planned in the current core drilling program to 'twin' previously reported RC holes in order to compare grades of mineralized intercepts between the two drilling methods. Three drill holes presented above, Tan11-DD02, Tan11-DD05 and Tan11-DD17 are twins of RC holes Tan11-RC39, Tan10-RC22 and Tan11-RC72 respectively and the grades of matching intervals are compared below.

Hole Number
Interval (metres) Intercept
(metres)
Weighted
Average
Grade
Variance
DD vs RC

(%)
From To (g/t Au)
Tan 11-DD02 32.0 134.0 102.0 1.16 -23.6
Tan11-RC39 26.0 128.0 102.0 1.52
Tan11-DD05 6.0 37.5 31.5 0.68 +119.3
Tan10-RC22 6.0 38.0 32.0 0.31
Tan11-DD05 40.8 121.2 80.4 0.41 +17.1
Tan10-RC22 42.0 122.0 80.0 0.35
Tan11-DD05 139.4 145.5 6.1 0.41 +2.5
Tan10-RC22 140.0 146.0 6.0 0.40
Tan11-DD05 165.4 187.5 22.1 0.17 +54.5
Tan10-RC22 166.0 188.0 22.0 0.11
Tan11-DD17 59.0 119.5 60.5 2.07 +80.0
Tan11-RC72 42.0 102.0 60.0 1.15

Hole Tan11-DD02 was collared 3 metres behind Tan11-RC39 and twins the reverse circulation hole for the first 150 metres of its length. This is the only set of twins examined to date that indicates a higher grade in the RC hole than in the diamond hole.

Hole Tan11-DD05 was collared very close to Tan10-RC22 on section 550NE and twins the reverse circulation hole for its entire length. This direct comparison of lower grade intersections indicates consistenty higher grades from drill core relative to RC derived samples.

Hole Tan11-DD17 was collared five metres behind TAN11-RC72 on section 800SW and encountered the mineralized zone at 59 meters down-hole versus 42 meters in the RC hole. The core hole then intersected 70 meters of mineralization in the main zone compared with 60 metres in the RC hole. To achieve as direct a comparison as possible, grades from the first 60 meters of the mineralized zone in the core hole were compared with the entire mineralized intersection in the RC hole and indicates an 80% increase in the grade of the core hole over that in the RC hole.

"Channel's confidence in the consistency of mineralization in the Mankarga 5 zone continues to grow," commented Colin McAleenan, President and CEO of Channel Resources. "The Company is rapidly enhancing its understanding of the deposit's structure ahead of the project's first resource estimate, expected in the first quarter of 2012. It is especially encouraging to see drill core results from section 800SW, the furthest section to the southwest for which drill results are available, showing higher grades than RC holes previously drilled on that line. Two holes have now been drilled, with results pending, up to 500 metres further to the southwest of this section in an effort to extend the currently delineated 1.85km strike-length of the deposit."

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.

Drilling, sampling and reporting practices:

  • All hole collars are set to dip at -50° to their respective azimuths.
  • RC holes are systematically sampled at 2m intervals.
  • Core holes are sampled geologically with a maximum sample interval of 1.5m (with the exception of holes Tan11-DD01 and Tan11-DD02 which have a maximum sample interval of 2.0m).
  • "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.

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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