| June 16, 2011 |
| Channel Resources Commences 15,000 Metre Core Drilling Program at Tanlouka Gold Project, Burkina Faso |
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2011) - Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased to announce that it has commenced its 15,000 metre core drilling program on the Tanlouka Gold Project with two rigs, each operating on two shifts. The main objective of this program is to position the Mankarga 5 gold deposit for its first NI43-101 resource estimate by the first quarter of 2012, as well as to test extensions to the deposit's 1.85 kilometre strike length established through a recently completed 10,000 metre reverse-circulation ("RC") drilling program.
Individual sections that were only partially drilled in the RC program will be completed and in-filled to result in a nominal drill pattern of 100 metres by 50 metres with more structurally complex areas drilled to 50 metres by 50 metres. Approximately 10% of the RC drill holes in Mankarga 5 will be twinned with core holes to compare grades. The RC drilling encountered water at a depth of approximately 50 metres in most of the holes with the effect that drill cuttings from below this level were 'washed' before being sampled with potential loss of fine gold. Core drilling will help to establish the definitive widths and grades of the Mankarga 5 deposit.
The potential for the Mankarga 5 deposit's strike length to be significantly extended will also be tested in this drill program. A recently completed magnetic survey shows that the Mankarga 5 mineralized trend correlates well with a linear transition zone between high and low magnetic rocks. Assuming that this is the principal expression of the mineralized zone on these maps, the Mankarga 5 structure has a strike length potential of approximately three kilometres, extending both to the northeast and to the southwest of the area drilled thus far. A map showing this magnetic trend based on the tilt derivative of reduced-to-pole total magnetic intensity, relative to drill hole locations in Mankarga 5 is available at: http://www.channelresources.ca/i/pdf/CHUmap060311.pdf
Mankarga 1 Target
RC drilling in 2010 on the Mankarga 1 target, approximately 1 kilometre west to northwest of Mankarga 5, has resulted in some of the highest grade intersections reported thus far at Tanlouka, including 12 metres grading 21.25 g/t Au in Tan10-RC12, as reported on January 20, 2011, and 38 metres grading 3.09 g/t Au in Tan10-RC10, as reported on September 8, 2010. However, due to the structural complexity of the area the Company has not been able to define continuity of the mineralization in this area using reverse circulation drilling. The Company is planning to drill-test structural targets in this area generated through an examination of the high-resolution airborne magnetic and radiometric data.
New Exploration Targets
The property-wide high-resolution geophysics data will be used with historical regional scale gold-in-soil geochemistry survey data to help identify new target areas. Gold-in-soil anomalies already outlined, especially those that have been targets for artisanal miners, offer good prospects for follow-up work including detailed soil surveys and drill testing.
Grant of Options
Channel also announces that it has approved the grant of stock options ("Options") effective June 16, 2011 for the purchase of up to 80,000 common shares of the Company at an exercise price of $0.22 per share. The Options have a term of five years, are subject to vesting provisions, and are governed by the Company's Stock Option Plan, pursuant to which Options may be granted up to a maximum of 10% of the issued and outstanding common shares of the Company from time to time.
About Channel Resources Ltd.
Channel Resources Ltd. is a Canadian TSX.V listed mineral exploration Company 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 recently discovered multiple mineralized zones that are now being explored and expanded through an aggressive exploration strategy. 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 well financed to advance both projects and is actively searching for additional opportunities to expand its project portfolio.
Drilling programs at the Tanlouka Gold Project are supervised by John Adams P.Geo., a qualified person as defined by NI 43-101, who has reviewed the contents of this news release.
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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