Williams Creek Explorations Limited

Williams Creek Explorations Limited

April 08, 2011 11:43 ET

CORRECTION FROM SOURCE: Williams Creek Announces Acquisition of the Pine Group of Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 8, 2011) - Williams Creek Explorations Limited ("Williams Creek," "the Company," or "WCX") announced in a news release on April 08, 2011 that Melvin Zeiler retained a 1.5% Net Smelter Return Royalty ("NSR") in the Pine Group of properties, and that Williams Creek obtained an option to buy the NSR for $1.5 million.

While Williams Creek obtained an option to purchase the NSR from Mr. Zeiler for the same $1.5 million, Mr. Zeiler retained a 2% NSR and not a 1.5% NSR.

Please find a corrected version of the aforementioned news release below.

Williams Creek Explorations Limited (TSX VENTURE:WCX) ("Williams Creek," "the Company," or "WCX") is pleased to announce that it has entered into an agreement to acquire a 100% interest in claims known as the Pine Group ("the Pine Property"), an exploration property located in the Cariboo Mining Division in Central British Columbia, approximately 17 km southwest of the historic gold mining town of Barkerville.

The Pine Property is comprised of four mineral tenures covering approximately 750 hectares near the historic gold producing towns of Stanley and Van Winkle, B.C. This area was the site of productive placers containing coarse gold considered to have been locally derived from massive sulfide sources, although the bedrock sources have yet to be identified. Provincial Highway 26 extends east-west across the property providing excellent road access.

Williams Creek acquired 100% interest in the Pine Property by making a one-time cash payment to holder of the mineral tenures Melvin L. Zeiler, who will retain a 2% Net Smelter Return Royalty (NSR). Williams Creek retains the option to purchase 100% of the NSR for $1.5 million. A transaction reflecting these terms closed on April 4, 2011.

Old underground workings with sizable dumps are evidence of past production. A soil grid was conducted on the property in 2005 that defined a gold-in-soil anomaly approximately 200 meters wide by 300 meters long with gold values up to 350 ppb. The soil grid was expanded in 2006 and the gold anomaly was expanded to 450 meters in length with gold-in-soil values up to 2070 ppb. No work has been done since 2006 and the soil anomalies remain open to the north and south.

"The Pine Property, with a soil anomaly of this size and tenor, is especially significant in a district such as the Cariboo, which has produced considerable amounts of gold from vein and replacement ore bodies and related placer deposits," said Michael Sonnenreich, Chairman of the Board and CEO of Williams Creek.

Williams Creek will undertake a program of mapping, soil sampling and trenching in the 2011 field season to test the potential of the property. The program will extend the soil grid to better define the extent and source of the main soil anomaly and satellite anomalous zones at the margins of the grid. The 2005-2006 soil grids cover only about 3% of the Pine Property.
"The proposed work on the Pine Property is a good fit with WCX's planned 2011 drilling program on its crown granted properties adjacent to Barkerville, approximately 17 km to the northeast," added Mr. Sonnenreich. "Moreover, this work is an important component of Williams Creek's three-part strategy of exploration, equity and joint venture investment, and financing."

The technical information contained in this news release was prepared by Williams Creek senior geologist John F. Childs, Ph.D., Childs Geoscience Inc. of Bozeman, Montana, who is a "Qualified Person" as defined under National Instrument 43-101.

About WCX:

Visit http://www.WilliamsCreek.ca to learn more about Williams Creek.

Explorations Ltd. Williams Creek Explorations Ltd. is a Canadian company with the primary purpose of participating broadly in the natural resource sector, with an emphasis on the gold subsector, through exploration, joint ventures or other equity investments.

The Company owns twenty-eight crown granted mineral claims in the Cariboo Mining Division and three crown granted mineral claims in the Kamloops Mining Division. The Company also has a net 30% interest in the ATW diamond property in the MacKenzie Mining District of the Northwest Territories.

On Behalf of the Board of Directors

Michael Sonnenreich CEO and Chairman of the Board of Directors Williams Creek Explorations Limited.

This news release may contain forward looking statements including management's assessments of future plans and operations, and expectations of future production. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g perational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production and the uncertainty of the availability of capital). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

The TSX Venture Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of this news release which has been prepared by management.

Contact Information

  • Williams Creek Explorations Limited
    Michael Sonnenreich

    Williams Creek Explorations Limited
    Dov Zigler