Channel Resources Ltd TSXV:CHU announced assays from the Mankarga 5 deposit of its Tanlouka gold project in Burkina Faso, West Africa. Results include
1.12 g/t gold over 3.1 metres
1.14 g/t over 12 metres (including 17.6 g/t over 0.4 metres)
0.74 g/t over 52.5 metres (including 1.9 g/t over 10.5 metres)
1.28 g/t over 30 metres
0.61 g/t over 57 metres (including 1.3 g/t over 6 metres)
0.81 g/t over 60 metres (including 2.07 g/t over 6 metres)
1.32 g/t over 1.5 metres
2.58 g/t over 3 metres
Senior VP Cyrus Ameli tells ResourceClips.com, “We have just completed the 15,000-metre core drilling program that was focused on one deposit on our Tanlouka project called ManKarga 5. That has been the primary focus of our drilling with the objective of putting out a resource estimate. We’re expecting [the resource estimate] over the next few months—as soon as we get all the results in from that drilling program.
Our goal with Mankarga 5 is to move it to feasibility as quickly as possible. I can see doing a PEA just to scope out the possibilities here over the course of the next year – Cyrus Ameli
“The results we’ve seen, including the ones we put out on Monday morning, have been very positive in terms of proving out the deposit: its strike length, which has now been extended to 2.3 kilometres, its overall width—which in some parts extends up to 300 metres wide. The grade and width of the intersections are very consistent, and the deposit remains open both in terms of strike length and to depth. There is still a lot of work to do. We continue to do infill drilling, and we’ve only reported about, I would say, 65% of the results from that 15,000-metre program. So there is still a lot of news waiting to come out.
“We’ve also announced that we’re expanding the exploration scope of our activities from solely looking at the Mankarga 5 deposit,” Ameli continues. “Part of that is looking at the Mankarga 1 zone—an area that is just 600 metres to the west of Mankarga 5. Two of the first holes we drilled in that area came back with some very impressive results in terms of grade. With the benefit of a structural study that has been completed, together with some very high-definition geophysics that was flown last year, we’re now able to look at Mankarga 1 and follow up on that with core drilling. So that will figure in to our future exploration activities. We’re also looking outside of the Mankarga zone in general, further north on the Tanlouka permit. We have some historical geochem work that was done by Channel back in the 1990s that came back with some interesting anomalies. We’re now able to go in and get our geologists to look at that a bit more closely and essentially prep those areas for future drill programs, whether it’s RC drilling or core. So we’ve got a very aggressive strategy both in terms of getting the initial resource estimate which is coming up shortly and then looking at the opportunities elsewhere on the project. So there is a lot of upside potential there for additional discoveries.
“The market has been quite difficult, and we’re trying to manage our exploration campaign in light of that fact and build value in the project. Right now we’re financed quite comfortably. We have about $3 million or $3.5 million in the bank once all is said and done. We’re looking at a number of different options available to us to move as quickly as we can. It’s pretty exciting, and I think we’re going to be able to build value regardless.
“With the maiden resource estimate coming up fairly soon, a lot of the drilling on Mankarga 5 [will be] aimed towards upgrading that resource from what will likely be mostly in the inferred category to measured and indicated. But at the same time, our goal with Mankarga 5 is to move it to feasibility as quickly as possible. I can see doing a PEA just to scope out the possibilities here over the course of the next year.
“One of the reasons we focused on [Mankarga 5] initially is because it’s a relatively easy deposit to scope out both from a resource perspective as well as an economic perspective. The structure of the deposit is very predictable. It’s also quite a nice deposit in that it’s very consistent. We’ve been drilling to a vertical depth of up to about 200 metres, the idea being we want to see what is easily open-pittable. The mineralized structures we’re seeing are very conducive to an open pit with, potentially, a fairly minimal waste-to-ore ratio. We’re doing metallurgical testing right now on the weathered rock near surface, where we see oxidized material to about a 60-metre depth, as well as below that on the unweathered rock. We’ve had samples of both that are in the lab right now. It will give us a very good idea of how much of the deposit is heap-leachable versus going to a CIL-plant type situation.
“The rock in this particular area that we’re in is a very similar type of rock to other projects. In our immediate area there is the Bomboré project which is run by Orezone Gold TSX:ORE, and to the south of us is the Kiaka Project operated by Volta Resources TSX:VTR. They’ve been making some very good headway both in terms of expanding those resources as well as looking at metallurgy, looking at the prospects of moving those projects forward into development. We see our rock as being quite similar [to theirs] in a number of respects. We’re making good progress and think we’ll be able to start looking at the economic end of it over the course of the next year. There are a lot of assumptions in there, but we have some pretty aggressive goals here.
“Right now we’re at the pre-resource stage,” Ameli concludes. “When you look at a market valuation of under $20 million right now there is a lot of opportunity for us to grow the company as we establish those resources—as valuation parameters are introduced into the mix. That will allow the company to grow quite rapidly over the next few months and years.”
or Cyrus Ameli
Senior Vice President
by Ted Niles