First post here... First off let me say that the good news is I have already bought and sold CHU for a 100% profit. The bad news, from a trading perspective is that I have recently repurchased my original order. That being said I bought yesterday @ 13.5 cents. There are a few things I find intriguing about CHU, and given my luck buying stocks that are exploring in Burkina Faso, West Africa, I could not resist the temptation to "get back in".
I like investing in this mining friendly region and there are a few points I would like to bring to the attention of potential investors why I have decided to jump back in.
The rainy season lasts in Burkina fFaso from May/June to September, and is shorter in the north of the country.
Of the 20 holes and 2,500 metres planned for this Phase I RC program, only 11 holes and 1,108 metres were completed due to mechanical issues and the onset of the rainy season. Channel intends to continue drilling at Tanlouka after the rainy season to follow up on these results as well as to complete the Phase I testing of the targeted areas within the Mankarga Zone.
Given the most recent news release dated Aug 17, 2010 the company has made a new discovery on their Tanlouka Gold Project in Burkina Faso, West Africa. This is the first drilling program to be conducted on the project apart from a historical, shallow RAB program and results indicate that a significant gold discovery has been made.
Assay results from three of the five target areas drilled have been received thus far, indicating a significant new discovery at 'Mankarga 5', and good exploration potential remaining for the discovery of additional mineralization within other target areas
Given the details of this release the remaining drill samples could have an immediate impact on the share price considering the rich results that have been found in this area over time.
"The two intersections in Mankarga 5 exhibit very similar geology and gold mineralization suggesting good continuity in the structure over the 250 metres between drill holes," commented Colin McAleenan, President and CEO of the Company. "The presence of artisanal workings along the trend indicates an apparent strike length for this shear zone of over 1,000 metres."
I would expect this company to do further drilling of discovery holes in ts area.
There is plenty to like with a speculative investment with Channel, it appears they may have discovered another resource in this gold rich area. The price is right and the potential is there. It's just a matter of confirmation, but that will take some time. Time is an asset, given the outlook for the price of gold in the future this stock certainly looks worth the risk.
May future endeavors bring riches beyond your wildest dreams
MrCashflow