Thursday 27th October 2016

Resource Clips

Channel reports Burkina Faso Gold Results as high as 1.99 g/t over 70m

Resource Clips - essential news on junior gold mining and junior silver miningChannel Resources Ltd TSXV:CHU announced assays from its Tanlouka Gold Project in Burkina Faso. Results include 1.99 g/t gold over 70 metres (including 6.47 g/t over 13.5 metres), 1.1 g/t over 108 metres (including 2.32 g/t over 20 metres), 0.92 g/t over 98.7 metres (including 1.15 g/t over 30 metres), 1.2 g/t over 52.5 metres (including 5.67 g/t over 4.5 metres) and 0.77 g/t over 64.5 metres (including 1.32 g/t over 11.3 metres).

CFO Cyrus Ameli tells, “Tanlouka is actually a property that Channel has had for quite a number of years. We gradually did all the ground proofing that was necessary to delineate some drill targets on it during the market difficulties leading up to last year. Last year, we managed to raise enough money to do a very short drill program. That was enough to make our discovery at a number of different areas on the Tanlouka project, but principally on the Mankarga 5 zone, which is our main focus right now. We’ve been following that up and have been quite fortunate in being able quickly to delineate what is, right now, a 1.85-kilometre-long strike length. We haven’t yet completed any of our geological modelling on it, but we’re fairly confident that we have between a 150- and 200-metre-long width on it as well. That’s something that we’re starting to put together with this transition to the core drilling, the first results of which we put out this morning.

“We’ve done a lot of RC drilling previously to delineate the deposit, and that is very effective in determining if it’s mineralized; it’s more difficult to pin down the specific geology downhole. So that’s what we’re accomplishing right now with the core drilling. We’re doing some twins—there are a few in this morning’s news release—and we’re doing some infill drilling as well within the recognized strike length. So far in the program, we’ve drilled 32 holes, and a couple of those are extension holes as well to the south, along strike of the deposit. So with the holes already drilled there’s the potential of extending it by about 500 metres should they start to pan out.

We’ve been quite fortunate in being able quickly to delineate what is, right now, a 1.85-kilometre-long strike length—Cyrus Ameli

“Today’s results are quite positive on a number of levels,” continues Ameli. “First and foremost, they’re bearing out what we encountered with the RC program. We did some comparative holes—a comparison of similar intersections—and it showed by and large an increase in the grade. In some cases, not a lot; in, I think, one case it actually went down. But it’s showing that the RC grades that we encountered have been accurate or have been underestimating to a certain extent the true grade. It also shows that we received some of the strongest grades in Hole 17, to the south. That shows us as that the deposit is indeed still open, that we can extend it further down to the south, past the existing 1.8-kilometre strike length. This is all basically feeding into a resource estimate that we’re getting underway for publication in, we expect at this point, 1Q 2012.

“Right now we’re about we’re about 7,000 metres into the 15,000-metre core program. We’ve got two rigs running—they’re on a small hiatus right now, because it’s the rainy season in Burkina Faso. But we’re trying to get the 15,000 metres done as quickly as possible to feed into the resource estimate. From there on it will be additional drill programs to expand on the resource to feed into a preliminary economic assessment; we don’t have a timeline for that at this point. We will also be looking at the additional ground at Tanlouka. The Mankarga 5 area is a very small part of the project, and we’ve identified a number of different target areas within the Mankarga zone, as well as further to the north on the property that really require some follow up, both in terms of further ground proofing as well as drilling. That’ll be happening over the next several months as well.

“With regard to production, we’re basically looking at the best value for the company and for our shareholders, of which we’re significant ones. So I can’t say at this point whether we want to go into production ourselves. Obviously that requires a very different focus and skill set within the management and personnel of the company.

“Burkina Faso is a mining-friendly country. We’ve received a lot of support from the government, also from the Canadian government’s presence there. As to the infrastructure around the project—you’re working in Africa, so the level of development there is lower than working in Western countries. But we do have road access—there’s a main highway that runs very close to our project and our base of operations. It’s very easy to work in that area. But we do have to build some of our own infrastructure in terms of the drilling camps and access to water supplies and so forth. But it’s all well in hand in terms of our team on the ground there, in terms of what we’ve been able to pull together in the last year.

“The project is moving forward very quickly, and we’re quite pleased with the progress and all the assistance of the local communities and government. There’s a strong drive in Burkina to advance the gold industry as quickly as possible and get as much production going as quickly as possible. We’ve been able to very quickly pin down a deposit that’s holding together very well. There’s still a lot of work to be done it, but we’re making very good progress on it, and we’ve got a lot of results coming down the pipeline.

“If you look at our share price over the last two years, we’ve come a long way through this discovery,” Ameli concludes. “At this point, as a management team and as explorationists, we believe that there is a lot of exploration potential on the project for expansion of the recognized mineralized zones. We’re heading towards our first resource estimate on the project with which we’ll be able to actually have some figures to make some direct comparisons to our peers. But when you look at a direct comparison of other players in Burkina at or around the same level of development as we are, I think we’re still not as well valued as some of our peers. And that’s part of our job as well: to get the story out to the market as quickly as possible.”

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Colin McAleenan

or Cyrus Ameli
CFO/VP of Corporate Affairs

by Greg Klein and Ted Niles

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