Channel drilling in West Africa

Junior Channel Resources (VSE) is encouraged by drill results from its extensive land package in Burkina Faso, West Africa.

Channel holds four concessions, covering 6,200 sq. km, in the region. These are underlain by prospective Birimian Formation volcanics and contain extensive, shallow surface diggings indicating the presence of gold. A third drill rig is being added to the two already working, as the company continues to test targets identified by artisinal workings. At the same time, geochemical grid sampling is being carried out in an effort to locate new anomalies.

To date, 96 reverse-circulation holes have tested 10 of a possible 100 or more targets. Significant results were noted in two areas where drilling returned 26 ft. grading 0.42 oz. gold per ton and 20 ft. of 0.43 oz. A second phase of drilling, on the Somifa and Bombore properties, resulted in the following select assays:

* Bombore — 59 ft. of 0.18 oz. gold; 85 ft. of 0.04 oz.; 112 ft. of 0.05 oz.; 46 ft. of 0.08 oz.; 53 ft. of 0.02 oz.; 33 ft. of 0.06 oz.; and 39 ft. of 0.05 oz.

* Somifa — 26 ft. of 0.25 oz. gold; 112 ft. of 0.05 oz.; 72 ft. of 0.11 oz.; 72 ft. of 0.04 oz.; 39 ft. of 0.11 oz.; 171 ft. of 0.04 oz.; and 158 ft. of 0.03 oz.

Channel is 30%-owned by Vancouver-based Viceroy Resource (TSE), which holds a 75% interest in the Castle Mountain mine in California. That mine turned out 81,877 oz. gold for the six months ended Sept. 30, at a cash cost of US$175 per oz.

Channel is one of several companies launched by Viceroy that are focusing on international exploration. Another, Pacific Wildcat Resources (VSE), is exploring in Indonesia and Southeast Asia, and will begin investigating Argentina this winter. Pacific Wildcat is 26% owned by Viceroy.