Channel Resources to Commence 15,000 Metre Core Drilling Program at Tanlouka Gold Project, Burkina Faso
May 17, 2011 (Marketwire) --
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/17/11 -- ChannelResources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleasedto announce that it has secured a contract to continue execution of itsexploration program for the Tanlouka Gold Project ("Tanlouka") with thecommencement in early June of a 15,000 metre core drilling program. Theclosing of its $7 million private placement financing on May 6, 2011will allow the Company to aggressively advance the Mankarga 5 deposit,allowing for an initial resource estimate thereon in the near term, andto explore other targets throughout the Tanlouka permit.
Mankarga 5 Deposit: Definition Drilling and Preparation for Initial Resource Estimate
Channel has secured a contract with 'Projet Production International BFSARL' for an initial program of at least 15,000 meters of HQ and NQdiamond-core drilling. The primary objective of the Mankarga 5 programwill be to prepare the deposit for a resource estimate by the firstcalendar quarter of 2012, as well as to continue to extend its strikelength beyond the currently defined 1.8 kilometres. Examination of corefrom Mankarga 5, together with results from geochemical and geophysicalsurveys recently completed, will allow for better definition of thestructural and geological setting of the deposit and permit moreaccurate targeting of expansion drilling.
Two drill rigs, each operating on two shifts, will be employed tocomplete as many holes as possible into Mankarga 5 before the onset ofthe rainy season, which typically results in a suspension of fieldactivities in mid-July. Drilling is expected to re-commence by the endof September allowing for the completion of the initial program by theend of the year. Upon successful completion of this drilling program,the Company expects to be in a position to commission a resourceestimate for the Mankarga 5 deposit for delivery in the first half of2012.
In addition to the drilling program, Channel plans to conduct initialmetallurgical testing for cyanide leachability on samples from thedeposit.
Mankarga 1 Target: Airborne Geophysics and Core Drilling
RC drilling in 2010 in the Mankarga 1 target, approximately 1 kilometerwest to northwest of Mankarga 5, has resulted in some of the highestgrade intersections reported thus far at Tanlouka, including 12 metresgrading 21.25 g/t Au in Tan10-RC12, as reported on January 20, 2011, and38 metres grading 3.09 g/t Au in Tan10-RC10, as reported on September8, 2010. However, due to the structural complexity of the area theCompany has not been able to define continuity of the mineralization inthis area using reverse circulation drilling alone. The Company isplanning to diamond drill-test structural targets in the area generatedthrough examination of recently acquired high resolution airbornemagnetic and radiometric data.
New Exploration Targets
Recently acquired property-wide high-resolution geophysics data will beused with historical regional scale gold-in-soil geochemistry surveydata to help identify new target areas. Gold-in-soil anomalies alreadyoutlined, especially those that have been targets for artisanal miners,offer good prospects for follow-up including detailed soil surveys anddrill testing. Work on some of these target areas is expected tocommence before the rainy season.
About Channel Resources Ltd.
Channel Resources Ltd. is a Canadian TSX.V listed mineral explorationCompany has a 90% interest in the Tanlouka Gold Project in Burkina Faso,West Africa and an option to earn 100% in the Fox Creek Lithium /Potash Brine Project in Alberta. At Tanlouka, Channel has recentlydiscovered multiple mineralized zones that are now being explored andexpanded through an aggressive exploration strategy. At Fox Creek, abulk sample of brine sourced from producing natural gas wells isundergoing process testing to determine the most efficient method ofproducing various industrial minerals from the brine, including lithiumcarbonate, potash, bromine and borates. The Company is well financed toadvance both projects and is actively searching for additionalopportunities to expand its project portfolio.
Drilling programs at the Tanlouka Gold Project are supervised by JohnAdams P.Geo., a qualified person as defined by NI 43-101, who hasreviewed the contents of this news release.
Some of the statements contained herein are forward-looking statementswhich involve known and unknown risks and uncertainties. Withoutlimitation, statements regarding potential mineralization and resources,exploration results, and future plans and objectives of the Company areforward looking statements that involve various degrees of risk. Thefollowing are important factors that could cause the Company's actualresults to differ materially from those expressed or implied by suchforward looking statements: changes in the price of minerals, generalmarket conditions, risks inherent in mineral exploration, risksassociated with development, construction and mining operations, theuncertainty of future profitability and the uncertainty of access toadditional capital. The Company undertakes no obligation to updatepublicly or otherwise revise any forward-looking statements or theforegoing list of factors, whether as a result of new information orfuture events or otherwise. Further disclosure on risk factors isavailable in the Company's various corporate filings at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Channel Resources Ltd.
Colin McAleenan
President & CEO
604.684.7098
Channel Resources Ltd.
Cyrus Ameli
CFO & VP Corporate Affairs
604.684.7098
604.684.7079 (FAX)
info@channelresources.ca
www.channelresources.ca