Channel Resources Announces Maiden Resource Estimate for Tanlouka Gold Project in Burkina Faso, West Africa
July 19 2012 - 8:05AM
Marketwired Canada
Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased
to announce a maiden Mineral Resource Estimate for the Mankarga 5 deposit at its
Tanlouka gold project (the "Tanlouka Project"), located in Burkina Faso, West
Africa.
The Company engaged AMEC Americas Ltd. ("AMEC") to conduct a mineral resource
estimate in accordance with National Instrument 43-101 standards (the "Mineral
Resource Estimate") on the Mankarga 5 deposit based on 71 core drill holes and
58 reverse circulation ("RC") drill holes for a total of 22,536 metres drilled
since June of 2010.
AMEC's Mineral Resource Estimate is derived from the application of a Whittle
pit shell on the deposit's total mineral inventory, estimated using a number of
assumptions including a gold price of US$1,465 per ounce, preliminary
metallurgical test results for the deposit, and estimates derived from
comparable projects for mining, processing and general and administrative costs.
The resulting Mineral Resource Estimate includes 'base case' Indicated and
Inferred resources for both oxide and sulphide mineralization at discrete
cut-off grades for each mineralization type as tabulated below:
----------------------------------------------------------------------------
Class Rock Type Cut-off Grade Quantity Grade Contained Gold
(g/t Au) (tonnes) (g/t Au) (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
----------------------------------------------------------------------------
The Mineral Resource Estimate is resilient to increases in cut-off grade, which
could play an important role if costs of production were to increase
significantly over what has been assumed in the base case estimate. The
following table presents the sensitivity of Indicated and Inferred Mineral
Resources with combined oxide and sulphide mineralization within the Whittle
open pit using a range of cut-off grades:
----------------------------------------------------------------------------
Cut-off Contained Contained
Grade Quantity Grade Gold Quantity Grade Gold
(g/t Au) (tonnes) (g/t Au) (ounces) (tonnes) (g/t Au) (ounces)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Indicated Inferred
----------------------------------------- --------------------------------
0.18 14,245,000 0.93 427,000 29,478,000 0.77 732,000
----------------------------------------- --------------------------------
0.27 14,003,000 0.94 425,000 28,870,000 0.78 728,000
----------------------------------------- --------------------------------
0.40 12,740,000 1.00 410,000 24,131,000 0.87 673,000
----------------------------------------- --------------------------------
0.50 11,544,000 1.06 395,000 19,278,000 0.97 604,000
----------------------------------------- --------------------------------
0.60 10,095,000 1.14 369,000 15,475,000 1.08 539,000
----------------------------------------- --------------------------------
0.80 7,183,000 1.31 303,000 9,419,000 1.33 402,000
----------------------------------------- --------------------------------
1.00 5,091,000 1.49 243,000 5,758,000 1.61 299,000
----------------------------------------------------------------------------
As envisaged, the total resource is contained within one open pit with a strip
ratio of 2.1:1. Two main structures and seventeen parallel hanging- and
foot-wall structures have been identified within a broad shear zone. Gold
mineralization is associated with silica alteration within metavolcanic and
metasedimentary host rocks. The deposit extends over a strike length of
approximately 2 kilometres trending northeast-southwest and remains open
along-strike as well as to-depth. The project is situated approximately 100
kilometres east of Ouagadougou, the capital of Burkina Faso, and is proximal to
a major highway, with good local infrastructure and in an area of low population
density.
"This initial Mineral Resource Estimate at Tanlouka, in particular the robust
continuity of the mineralized zones is very encouraging, and together with
preliminary metallurgical results recently released augers well for the
development potential of the Mankarga 5 deposit," commented Channel President &
CEO Colin McAleenan. "We have been very pleased with the rapid pace and cost
efficiency of exploration at the project, having been able to generate a Mineral
Resource Estimate of this magnitude within two years of discovery, at a
'discovery cost' of approximately $5 per ounce of gold."
Mineral Resource Estimate Assumptions and Parameters
-- Inverse distance squared interpolation methods were employed with
statistically derived top cuts applied to three-metre composited grades.
-- The Mineral Resource Estimate is based on core and RC drill hole assays
available as at July 4, 2012, which represents the effective date of the
Mineral Resource Estimate.
-- Mineralized zone outlines were interpolated from drill hole
intersections using a minimum sample grade of 0.20 g/t gold.
-- 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.
-- Resource modeling was performed using GEMCOM Surpac software.
-- 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 of US$1.54
/ tonne, processing costs of US$3.91 / tonne (oxide-HL) and US$8.52 /
tonne (sulphide-CIL) and G & A costs of US$1.39 / tonne.
-- The base-case Mineral Resource Estimate assumes mining costs that are
based on heap-leach processing for oxide material and carbon-in-leach
processing for sulphide material. Metallurgical recoveries were based on
preliminary testing by SGS Canada Inc. on Mankarga 5 samples as
published on July 7, 2012, including 79% gold recovery in oxide (using
3/8" coarse-ore bucket leach test result as a proxy for heap leach
processing) and 89% gold recovery in sulphide (the average of six bottle
roll leach tests).
-- 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).
Tanlouka Project Advancing Quickly
Channel's activities at the Tanlouka gold project are focused on both advancing
the Mankarga 5 deposit as quickly as possible through to feasibility and
development, and demonstrating the additional exploration potential of the
project. The Company has met several critical milestones for advancing Mankarga
5 including the estimate of mineral resources described in this release together
with indications of favorable metallurgical characteristics of the deposit as
published on July 7, 2012.
Upcoming news from the project includes:
-- Results from 2,000 metres of core drilling recently completed in the
area of the Mankarga 1 target, to follow up on previous high-grade
discovery holes drilled in 2010, and also to investigate possible
mineralized continuity between Mankarga 5 and Mankarga 1; and,
-- Results from soil sampling programs underway on the Manesse and Tanwaka
target areas to the north of the Mankarga Zone on the 79 square
kilometre Tanlouka permit.
Future drill programs and other exploration activities are being planned for
Mankarga 5 and other targets on the Tanlouka project based on the results of
current programs and will be announced as news becomes available.
The independent mineral resource estimated by AMEC is consistent with the
standards set out in Canadian Securities Administrators' National Instrument
43-101 and the Company is treating both the indicated and inferred gold resource
estimate as a National Instrument 43-101 resource estimate. The Company
anticipates that a report consistent with the form of a National Instrument
43-101 Technical Report, which will incorporate the gold resource estimate, will
be filed on the SEDAR within 45 days. Mineral Resources which are not mineral
reserves do not have demonstrated economic viability. Mineral resource estimates
presented in this news release are by nature imprecise and depend, to a certain
extent, upon geological interpretation and statistical inferences that are based
on drilling information that may ultimately prove to be unrepresentative or
unreliable. They may be materially affected by geology, environment, permitting,
legal, title, taxation, socio-political, marketing or other relevant issues. Due
to the uncertainty that may be attached to Inferred Mineral Resources, it cannot
be assumed that all or any part of an Inferred Mineral Resource will be upgraded
to an Indicated or Measured Mineral Resource as a result of continued
exploration. Figures may not sum due to rounding. Significant figures do not
indicate added level of precision.
The resource model and Mineral Resource Estimate were prepared by Mr. Jeffrey K.
Smith, P.Geo., Principal Geologist at AMEC in Toronto, Ontario, who is an
independent Qualified Person as defined in National Instrument 43-101 and who
has conducted a site audit at the Tanlouka Project and reviewed data collection,
quality control, geological interpretations and modeling procedures used by the
Company. Mr. Smith has reviewed and approved of the contents of this news
release related to the Mineral Resource Estimate.
Drilling programs conducted at the Tanlouka Project were supervised by John
Adams, P.Geo., the project's Qualified Person as defined by National Instrument
43-101, who has reviewed and approved of the contents of this news release.
Drilling results used in the Mineral Resource Estimate are based on fire assay
results from three laboratories in Ouagadougou, Burkina Faso including ACTLABS -
Burkina Faso SARL, SGS Burkina Faso SA and Abilab Burkina SARL (ALS Laboratory
Group), and are subject to rigorous quality control procedures involving the use
of duplicate samples and blanks and certified gold standards.
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.
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