Monday, 30 April 2012

Channel Resources earns 100% of Fox Creek project

Mineral explorer Channel Resources (CVE:CHU) said Monday that it has earned its 100 percent stake in the Fox Creek mineral brine project, in Alberta.

Channel’s earn-in to own the property is 10-months ahead of schedule, thanks to a recent amendment made to its original agreement signed on February 24, 2009.

The original deal called for Channel to acquire a 100 percent stake in the project if it paid $10,000 and one million in shares to Polaris Capital Ltd, on execution and on each of the first four anniversary dates of the agreement.

The new amendment has allowed Channel to forego the last one million share payment, allowing it to own the project as of April 25.

Polaris has retained a two percent gross sales proceeds royalty, which can be purchased for $2 million.

Channel also has a 90 percent stake in the Tanlouka Gold project in Burkina Faso, West Africa.

At Tanlouka, Channel has discovered multiple mineralized zones that are being followed up with more than 25,000 metre of drilling, with a maiden resource estimate for the Mankarga 5 deposit expected this spring.

The company also said last week that it will shortly start a 2,000 metre core-drilling program focused on the Mankarga 1 target area at Tanlouka.

In addition, at Fox Creek, the company is developing a process flow sheet to determine the most efficient sequence of methods to produce various industrial minerals from the brine, including salt, lithium carbonate, potash, bromine and borates.

Channel also noted Monday that it has filed a technical report in support of its initial resource estimate for Fox Creek, announced in late March.

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