• 2010 RC drilling program intersections 250 metres apart on same structure:
  • 83.5 metres grading 0.94 grams gold / tonne ("g/t Au") including 40 metres grading 1.37 g/t Au and 10 metres grading 3.11 g/t Au
  • 48 metres grading 1.17 g/t Au including 26 metres grading 1.98 g/t Au
• RAB Drilling: Up to 12.7 g/T gold over 8.0 m
• Gradient IP and ground magnetic program indicates 1,300 x 200 m zone of high chargeability and resistivity associated with mineralization outlined in previous exploration
• Numerous artisanal workings on the 105 square kilometre property
• Channel has an option to earn 90% interest

The Tanlouka Gold Project is a 105 square kilometre property located within a one hour drive east of the capital city of Ouagadougou. The Tanlouka permit area straddles the Markoye Shear Zone, a crustal scale structure that extends from northern Ghana 450 kilometres to northern Burkina Faso. This important structure has some economic significance as it links some of Burkina's largest gold deposits including Essakane (IAMGOLD), Bombore (Orezone Gold), Taparko-Bouroum (High River Gold) and Kiaka (Volta Resources). It is thought that this structure provides the prime plumbing system for gold mineralized fluids in the region.

In recent years Burkina Faso has seen significant investment from international exploration and mining companies. Several mines are now in production and the country currently ranks as Africa's fourth largest gold producer.

The mineralized zones in the surveyed area of Tanlouka appear to be related to brittle-ductile deformation associated with an intrusive margin. A 12 kilometre long trend of regional scale (500m grid spacing) gold-in-soil anomalies has been outlined on the property within which three main centres are indicated. The most explored of these centres, known as the Mankarga Zone is located in the southern portion of the permit, and this is where the majority of artisanal workings are located.

A semi-detailed soil geochemistry survey (100 X 50 metre centres), with mapping and trenching and rock chip sampling have also been conducted over parts of the Mankarga Zone. The semi-detailed soil survey gold values ranged from less than 5ppb to a maximum of 1931 ppb gold. Channel sampling in one of the artisanal mining cuts on one of the soil anomalies returned an average grade of 2.33 g/T gold over 11.0 meters.

Also within the Mankarga Zone, a 30 line-kilometer gradient IP and ground magnetic survey identified several strong anomalies including a 1,300 metre long by up to 200 metre wide north-northwest trending zone characterized by high chargeability and high resistivity that also coincides with artisanal workings.

Channel has tested the Mankarga Zone with widely-spaced fences of rotary air-blast ("RAB") shallow drill holes. The best intersection obtained was 12.7 g/T gold over 8.0 metres and was one of six consecutive mineralized holes spanning a 70 metre-wide zone. It is interesting to note that in all of these holes the small drill could not penetrate a mineralized siliceous zone and holes were abandoned after reaching a depth of less than 10 meters.

Assay results from three of the five target areas drilled have been received thus far, indicating a significant new discovery at 'Mankarga 5', and good exploration potential remaining for the discovery of additional mineralization within other target areas.