Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

November 22, 2010 10:57 ET

Channel Resources Resumes Drilling at Tanlouka Gold Project, Burkina Faso

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 22, 2010) - Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) announces that it has resumed exploration drilling at the Tanlouka gold project in Burkina Faso, West Africa, with a 10,000 metre reverse circulation program to follow up on two recent discoveries and to assess multiple untested targets.

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. An initial drilling program of 1,100 meters in 11 holes was drilled before the onset of heavy rains in August, resulting in the discovery of two separate mineralized zones (as announced in news releases issued on August 17, 2010 and September 8, 2010) in targets areas 1.3 kilometres apart. Targets have been outlined by soil geochemical anomalies, high resistivity and chargeability structures, magnetic anomalies, as well as extensive artisanal workings.

Following this initial success, the company has expanded the program for an additional 10,000 meters of reverse circulation drilling in approximately 65 holes, to include bracketing and follow-up of the initial discoveries, as well as reconnaissance drilling to assess additional targets to those drilled over the summer.

One of the main targets of this program is the 'Mankarga 5' structure which was first intersected by holes T2010-7 (48 metres grading 1.17 grams gold per tonne (g/t Au) including 26 metres grading 1.98 g/t Au) and T2010-8 (83.5 metres grading 0.94 g/t Au including 40 metres grading 1.37 g/t Au and 10 metres grading 3.11 g/t Au). Mankarga 5 is defined by a one kilometre northeast linear trend of artisanal workings which lends itself easily to systematic drilling.

A second focus of drilling is the 'Mankarga 1' structure where mineralization was intersected by hole T2010-10 (38 metres grading 3.09 g/t gold including 16 metres grading 4.8 g/t Au). This zone is characterized by an east-west trending sheared and silicified gabbroic unit that is parallel to the magnetic fabric and is being actively exploited by artisanal miners.

A map showing planned drill hole target areas is available for download from http://www.channelresources.ca/i/pdf/chutanloukanovdrilling.pdf.

The Tanlouka property is located within the Markoye Shear Zone, a 450 kilometre long, crustal scale feature trending northeast through the West African greenstone belt from northern Ghana through Burkina Faso and into Niger. This zone connects several of Burkina Faso's largest gold deposits including Essakane (IAMGOLD), Bombore (Orezone Gold), Kiaka (Volta Resources) and Taparko Baroum (High River Gold).

The program is being conducted under the supervision of John Adams P.Geo., a qualified person as defined by NI 43–101. Gold analysis will be performed by Abilab Burkina SARL (ALS Laboratory Group) in Ouagadougou, Burkina Faso using standard fire assay and atomic absorption techniques. Channel Resources employs a rigorous quality control program, ensuring that all sample batches sent to the laboratory contain gold standards and blanks from an accredited Canadian laboratory as well as repeat samples.

This news release has been prepared under the supervision of Colin H. McAleenan, P.Geo, who is the Company's "Qualified Person" under the definition of NI 43-101.

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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