VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/03/13 -- Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE: CHU) is pleased to announce that it has received a two-year extension to the exploration permit for the Tanlouka gold project in Burkina Faso, West Africa (the "Tanlouka Project") from an original expiry date of January 27, 2014 to January 27, 2016, by which time a mining lease can be established to allow for development to take place.
"This extension to the Tanlouka exploration permit gives the Company further opportunity to expand on its maiden resource at Mankarga 5 and to capitalize on the significant exploration potential elsewhere on the project before proceeding to development," commented Colin McAleenan, Channel's President and CEO. "We appreciate the Government of Burkina Faso's timely action on this issue, which further demonstrates its commitment to the development of the mining industry as a major economic driver for the country."
Tanlouka Project Update
The Tanlouka Permit is situated approximately 80 kilometres east of the capital city of Ouagadougou, and is proximal to a major highway, in an area of low population density with good local infrastructure. It is located along the eastern margin of the Markoye Shear Zone, a 450 kilometre-long first order crustal scale structure that hosts many of the largest gold deposits in Burkina Faso.
Mankarga 5 Deposit
Channel published its first National Instrument 43-101 Mineral Resource Estimate (the "Estimate") for Mankarga 5 deposit in July of 2012, achieving an important milestone in demonstrating the potential of the Tanlouka Project only two years after drilling the first hole in the area and with a discovery cost of approximately $5 per ounce. This Estimate contains Indicated and Inferred resources for both oxide and sulphide mineralization as tabulated below:
-------------------------------------------------------------------------- Cut-off Grade Quantity Grade ContainedClass Rock Type (g/t Au) (tonnes) (g/t Au) Gold (ounces)--------------------------------------------------------------------------Indicated Oxide 0.18 2,252,000 0.89 64,000 Sulphide 0.27 11,814,000 0.95 361,000 ---------------------------------------------------- Total 14,066,000 0.94 425,000--------------------------------------------------------------------------Inferred Oxide 0.18 6,933,000 0.78 174,000 Sulphide 0.27 22,140,000 0.78 555,000 ---------------------------------------------------- Total 29,073,000 0.78 729,000---------------------------------------------------------------------------- Gold grades have been determined using Inverse Distance Squared interpolation techniques into a 3-Dimensional block model constrained by mineralization wireframes utilizing 20 metre (along strike) by 20 metre (across strike) by 5 metre (vertical) blocks, with statistically derived top cuts applied to three-metre composited grades.-- Whittle pit constraints assumed wall slopes of 26.5 degrees for oxide and 45 degrees for sulphide mineralization.-- The base-case Mineral Resource Estimate assumes mining costs that are based on heap-leach processing for oxide material and cyanide leach processing for sulphide material. Metallurgical recoveries were based on results of preliminary testing by SGS Canada Inc. on samples of Mankarga 5 sulphide and oxide mineralization.-- Specific gravity assumptions of 2.17 for oxide, 2.62 for sulphide and 2.70 for waste rock are based on measurements by the Company on 3,494 core samples from the Mankarga 5 deposit (approximately one sample for every 4.5 metres of core drilled).
