Channel Intersects 65.5 metres 1.6 g/t Gold at El Mozo Property, South Central Ecuador
KELOWNA, BRITISH COLUMBIA--(CCNMatthews - Sept. 28, 2006) - Channel Resources Ltd. ("Channel") (TSX VENTURE:CHU) is pleased to announce the completion of the 2,850 metre second phase diamond drilling program at the El Mozo Project in the Province of Azuay in South Central Ecuador. This program follows up the positive results achieved in Phase 1 drilling at the property earlier in the year. Results of the drilling are summarized in the tables below.
At the Freddy Zone, two drill holes, MDH-89 and 90, encountered 4.38 g/t Au over 10.67 m and 1.09 g/t Au over 16.89 m respectively. A hole previously un-assayed, MDH-81 was analyzed during this phase of drilling and resulted in 2.26 g/t Au over 30.48 m.
In the Indira Zone, MDH-98 encountered 1.19 g/t Au over 21.33 m, and MDH-104 encountered 1.0 g/t Au over 41.85 m. In the central part of Indira, hole MDH-109 intercepted 1.59 g/t Au over 65.54 m. In total, at Indira, eleven holes yielded intersections with mineralization in excess of one gram per tonne.
Drilling in the Indira zone has confirmed the strike length of the known continuous mineralization to over 1200 metres with possible extensions to the east and west. Mineralization has been encountered to depth of 170 metres.
One drill hole was drilled in the Monica Zone, MDH-110 which cut 2.32 g/t Au over 9.14 m.
Several drill holes were drilled in outlying areas to test stratigraphy and geochemical anomalies. Currently, geologic mapping and evaluation of the Mozo prospect continues in these areas which remain prospective.
Additional concessions have been acquired which more than double the original concession area. Geochemical sampling of rocks and soils is in progress to evaluate numerous untested geochemical and geophysical areas which exist within the total land package.
An overall review of the results to date is underway and the Phase III drilling program is being planned. The Company is also currently reviewing other potential exploration opportunities in Ecuador particularly in the south central sector.
Significant Drill Intersections - Freddy Phase II Drilling, 2006
Core From To Length Grade Metres Metres Metres Au g/t---------------------------------------------------------MDH-81(i) 42.67 73.15 30.48 2.26---------------------------------------------------------MDH-89 30.48 41.15 10.67 4.38---------------------------------------------------------MDH-90 30.48 47.24 16.89 1.09 Including 32.00 41.15 9.15 1.46---------------------------------------------------------
Significant Drill Intersections - Indira Phase II Drilling, 2006
Core From To Length Grade Metres Metres Metres Au g/t---------------------------------------------------------MDH-95 123.44 128.02 4.58 1.32---------------------------------------------------------MDH-97 62.48 79.25 16.77 1.10 100.58 129.54 28.96 1.05---------------------------------------------------------MDH-98 25.91 47.24 21.33 1.19 Including 28.96 32.00 3.04 2.92 71.63 79.25 7.62 1.34---------------------------------------------------------MDH-101 77.72 80.77 3.05 1.16 88.39 91.44 3.05 1.13---------------------------------------------------------MDH-103 70.10 74.68 4.58 2.01---------------------------------------------------------MDH-104 45.72 87.57 41.85 1.00---------------------------------------------------------MDH-105 7.62 15.24 7.62 1.07 48.77 57.91 9.14 1.01---------------------------------------------------------MDH-106 96.01 123.96 27.95 1.28 Including 110.94 123.96 13.02 2.01 138.68 141.73 3.05 1.36---------------------------------------------------------MDH-107 94.49 138.68 44.19 1.17 Including 103.63 114.3 10.67 1.88---------------------------------------------------------MDH-108 15.24 62.48 47.24 1.01 Including 18.29 27.19 8.9 2.89---------------------------------------------------------MDH-109 4.57 16.76 12.19 1.15 54.86 120.4 65.54 1.59---------------------------------------------------------
Significant Drill Intersections - Monica Phase II Drilling, 2006
Core From To Length Grade Metres Metres Metres Au g/t---------------------------------------------------------
---------------------------------------------------------MDH-110 3.05 12.19 9.14 2.33---------------------------------------------------------
(i)Un-assayed hole from Phase I drill programAs all holes are drilled at -45 degrees, true widths are assumed tobe approximately 70% of reported intervals.
Analysis for this campaign was performed by ACME Analytical Laboratories Ltd. of Vancouver, Canada, an ISO 9001:2000 series accredited laboratory facility by fire assay for gold, and atomic absorption for silver. Sample preparation was carried out by the ACME Ltd. preparation facility in Cuenca, Ecuador.
Dale Schultz P. Geo (Man, Sask) of Buscore International Consulting is acting as Qualified Person in compliance with National Instrument 43-101 with respect to this release. He has reviewed the contents for accuracy.
Forward-Looking Statement:
Some of the statements contained herein may be 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 world wide price of mineral commodities, 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 TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this Release.
CONTACT INFORMATION
Channel Resources Ltd.
The Honourable D. Ross Fitzpatrick
Chairman, President and Chief Executive Officer
(250) 764-7090
(250) 764-7093 (FAX)
Email: ir@channelresources.ca
Website: www.channelresources.ca
INDUSTRY:
Manufacturing & Production - Mining & Metals
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