Williams Creek Gold Limited
TSX VENTURE : WCX

Williams Creek Gold Limited

January 18, 2012 07:15 ET

Williams Creek Announces Additional Positive Drill Results from Barkerville Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2012) - Williams Creek Gold Limited (TSX VENTURE:WCX) announces completion of Phase II of its 2011 exploration and diamond drilling program on its wholly owned group of Crown Granted mineral claims centered in the historic Barkerville Camp, BC. Drilling was concentrated in the Stouts Gulch and Williams Creek drainages both of which had rich historical placer deposits. The drilling program was completed on November 8, 2011. A total of 4,819 meters (15,811 feet) were drilled in Phase II, with an overall total of 9,745 meters (31,975 feet) in 42 holes for the year. Significant delays in receiving results from the analytical laboratory have impacted the geological review of the results. The program was designed to follow up on excellent initial intercepts from the 23-hole Phase I drilling in both the Stouts Gulch area and the Morning Star area farther northwest.

Significant intercepts from Phase II are shown in the table presented below. The majority of the high grade intercepts in the Phase II drilling are quartz veins, locally in what appear to be vein zones. For example, in Hole WCX-11-26 in the Morning Star area an interval of 82.4 feet (25.1 meters) contains enough high grade veins and wall rock mineralization to average 4.59 g/t from 847.0 feet to 929.4 feet.

2011 PHASE II DRILL INTERCEPTS
DDH From (ft) To (ft) Interval
(ft)
From (m) To (m) Interval
(m)
Gold
(g/T)
WCX-11-24 607.0 617.0 10.00 185.0 188.1 3.0 1.275
WCX-11-25 509.8 515.7 5.9 155.4 157.2 1.8 3.840
515.7 525.4 9.7 157.2 160.1 2.9 0.399
525.4 528.0 2.6 160.1 160.9 0.8 30.900
528.0 537.0 9.0 160.9 163.7 2.7 1.145
Composite Interval (m) 8.3; Composite grade (g/T) 4.31
617.0 622.0 5.0 188.1 189.6 1.5 2.370
WCX-11-26 426.50 427.10 0.6 130.0 130.2 0.2 2.530
523.0 523.7 0.7 159.4 159.6 0.2 1.955
536.4 538.4 2.0 163.5 164.1 0.6 5.310
597.0 599.7 2.7 182.0 182.8 0.8 3.750
847.0 854.0 7.0 258.2 260.3 2.1 0.526
854.0 859.8 5.8 260.3 262.1 1.8 29.700
859.8 861.3 1.5 262.1 262.5 0.5 0.606
861.3 865.0 3.7 262.5 263.7 1.1 16.500
865.0 867.9 2.9 263.7 264.5 0.9 0.330
867.9 869.3 1.4 264.5 265.0 0.4 0.113
869.3 874.4 5.1 265.0 266.5 1.6 0.512
874.4 875.8 1.4 266.5 266.9 0.4 16.600
875.8 879.8 4.0 266.9 268.2 1.2 0.603
879.8 880.6 0.8 268.2 268.4 0.2 6.140
880.6 887.0 6.4 268.4 270.4 2.0 0.482
887.0 897.0 10.0 270.4 273.4 3.0 0.593
897.0 908.2 11.2 273.4 276.8 3.4 0.748
908.2 909.0 0.8 276.8 277.1 0.2 68.200
909.0 917.0 8.0 277.1 279.5 2.4 2.140
917.0 927.0 10.0 279.5 282.5 3.0 1.180
927.0 929.4 2.4 282.6 283.3 0.7 2.170
Composite Interval (m) 25.1; Composite grade (g/T) 4.59
WCX-11-27 932.3 933.3 1.0 284.2 284.5 0.3 1.675
WCX-11-28 546.20 547.30 1.1 166.5 166.8 0.3 1.205
587.00 588.30 1.3 178.9 179.3 0.4 2.650
699.90 700.50 0.6 213.3 213.5 0.2 15.300
WCX-11-29 68.50 75.10 6.6 20.9 22.9 2.0 2.040
579.60 581.80 2.2 176.7 177.3 0.7 1.970
WCX-11-30 117.0 127.0 10.0 35.7 38.7 3.0 1.605
WCX-11-31 157.0 167.0 10.0 47.9 50.9 3.0 2.970
207.0 217.0 10.0 63.1 66.1 3.0 7.700
217.0 227.0 10.0 66.1 69.2 3.0 0.217
227.0 228.3 1.3 69.2 69.6 0.4 3.350
Composite Interval (m) 6.5; Composite grade (g/T) 3.92
258.3 260.1 1.8 78.7 79.3 0.5 18.500
260.1 267.0 6.9 79.3 81.4 2.1 0.369
267.0 268.7 1.7 81.4 81.9 0.5 2.030
Composite Interval (m) 3.2; Composite grade (g/T) 3.78
311.8 314.8 3.0 95.0 96.0 0.9 29.400
342.2 343.7 1.5 104.3 104.8 0.5 21.800
431.5 436.5 5.0 131.5 133.0 1.5 3.240
436.5 440.5 4.0 133.0 134.3 1.2 0.025
440.5 447.0 6.5 134.3 136.2 2.0 1.070
Composite Interval (m) 4.7; Composite grade (g/T) 1.5
758.1 764.0 5.9 231.1 232.9 1.8 1.100
WCX-11-32 144.90 148.80 3.9 44.2 45.4 1.2 1.545
177.0 187.0 10.0 53.9 57.0 3.0 2.229
277.0 287.0 10.0 84.4 87.5 3.0 1.250
287.0 297.0 10.0 87.5 90.5 3.0 4.330
Composite Interval (m) 6.1; Composite grade (g/T) 2.79
WCX-11-33 160.6 162.1 1.5 49.0 49.4 0.5 44.100
172.2 172.5 0.3 52.5 52.6 0.1 31.400
172.5 177.0 4.5 52.6 53.9 1.4 0.066
177.0 185.4 8.4 53.9 56.5 2.6 0.042
185.4 186.1 0.7 56.5 56.7 0.2 9.980
186.1 193.5 7.4 56.7 59.0 2.3 0.142
193.5 194.1 0.6 59.0 59.2 0.2 2.330
194.1 197.0 2.9 59.2 60.0 0.9 0.164
197.0 207.0 10.0 60.0 63.1 3.0 0.022
207.0 208.8 1.8 63.1 63.6 0.5 46.700
Composite Interval (m) 11.2; Composite grade (g/T) 2.85
385.6 388.1 2.5 117.5 118.3 0.8 1.815
WCX-11-37 97.4 98.1 0.7 29.7 29.9 0.2 3.580
115.7 120.6 4.9 35.3 36.8 1.5 2.190
190.3 191.6 1.3 58.0 58.4 0.4 5.450
WCX-11-38 12.0 18.2 6.2 3.7 5.5 1.9 8.030
18.2 27.0 8.8 5.5 8.2 2.68 0.058
27.0 36.7 9.7 8.2 11.2 2.96 0.101
36.7 38.3 1.6 11.2 11.7 0.5 4.390
38.3 47.0 8.7 11.7 14.3 2.7 0.194
Composite Interval (m) 10.7; Composite grade (g/T) 1.71
185.4 189.0 3.6 56.5 57.6 1.1 13.050
189.0 197.0 8.0 57.6 60.0 2.4 0.023
197.0 207.0 10.0 60.0 63.1 3.0 0.046
207.0 210.1 3.1 63.1 64.0 0.9 6.250
210.1 213.3 3.2 64.0 65.0 1.0 0.435
213.3 217.4 4.1 65.0 66.3 1.3 14.700
217.4 227.0 9.6 66.3 69.2 2.9 0.283
227.0 240.2 13.2 69.2 73.2 4.0 0.290
Composite Interval (m) 16.7; Composite grade (g/T) 2.47
367.0 370.2 3.2 111.9 112.8 1.0 3.240
717.0 717.8 0.8 218.5 218.8 0.2 14.850
717.8 727.0 9.2 218.8 221.6 2.8 0.063
727.0 735.3 8.3 221.6 224.1 2.5 0.150
735.3 737.6 2.3 224.1 224.8 0.7 4.240
737.6 743.8 6.2 224.8 226.7 1.9 3.810
Composite Interval (m) 8.2; Composite grade (g/T) 1.76
781.1 782.8 1.7 238.1 238.6 0.5 14.650
818.0 819.8 1.8 249.3 249.9 0.5 4.940
819.8 826.3 6.5 249.9 251.9 2.0 0.231
826.3 834.5 8.2 251.9 254.4 2.5 7.550
834.5 837.0 2.5 254.4 255.1 0.8 0.162
837.0 847.0 10.0 255.1 258.2 3.0 0.017
847.0 857.0 10.0 258.2 261.2 3.0 0.007
857.0 867.0 10.0 261.2 264.3 3.0 0.248
867.0 872.1 5.1 264.3 265.8 1.6 3.480
Composite Interval (m) 16.5; Composite grade (g/T) 1.72
WCX-11-39 205.0 209.4 4.4 62.5 63.8 1.3 39.600
209.4 217.0 7.6 63.8 66.1 2.3 0.051
217.0 227.0 10.0 66.1 69.2 3.0 0.026
227.0 232.5 5.5 69.2 70.9 1.7 0.027
232.5 237.0 4.5 70.9 72.2 1.4 4.280
237.0 247.0 10.0 72.2 75.3 3.0 1.765
247.0 257.0 10.0 75.3 78.3 3.0 2.520
Composite Interval (m) 15.8; Composite grade (g/T) 4.56
WCX-11-40 441.9 442.9 1.0 134.7 135.0 0.3 11.750
487.0 488.4 1.4 148.4 148.9 0.4 11.950
488.4 491.4 3.0 148.9 149.8 0.9 0.011
491.4 497.4 6.0 149.8 151.6 1.8 1.815
Composite Interval (m) 3.2; Composite grade (g/T) 2.66
558.5 560.7 2.2 170.2 170.9 0.7 11.450
647.0 648.0 1.0 197.2 197.5 0.3 8.490
WCX-11-41 333.1 335.6 2.5 101.5 102.3 0.8 1.035
335.6 343.2 7.6 102.3 104.6 2.3 1.420
Composite Interval (m) 3.1; Composite grade (g/T) 1.32
377.0 387.0 10.0 114.9 118.0 3.0 2.610
387.0 392.1 5.1 118.0 119.5 1.6 0.065
392.1 393.2 1.1 119.5 119.8 0.3 7.540
Composite Interval (m) 4.9; Composite grade (g/T) 2.14

The area where the north trending Sirius Fault extends through the confluence of Williams Creek and Stouts Gulch is the site of some of the better intercepts, some of which are near-surface. WCX-11-38 through WCX-11-40 were collared approximately 200 feet (61 meters) east of the strong intercepts encountered in Phase I Holes WCX-11-01 through WCX-11-06 in the area of the Westport Adit. These holes contain numerous high grade intercepts up to 4.4 feet (1.3 meters) at 39.6 g/t. Ground preparation caused by deformation within the zone bounded by the Sirius Fault and the Barkerville Fault is thought to account for the better intercepts in this area. The number and grade of intercepts in the 2011 drilling program are encouraging and warrant a follow-up program in 2012.

A map showing the locations of the Phase I and Phase II holes drilled in 2011 is available on the Williams Creek Gold website (www.WilliamsCreek.ca). The results for both Phases of the 2011 drilling programs are presently being compiled and evaluated along with the stratigraphic succession and structural information identified in the 2011 drilling program. A Phase III drilling program is planned for 2012 to follow up on results in the Morning Star area, the area where Stouts Gulch joins Williams Creek, and elsewhere on the property where little or no historical drilling has been done.

Williams Creek Gold Chairman and C.E.O. Michael R. Sonnenreich stated,"The Company is looking forward to advancing its existing prospects in 2012 and is also aggressively pursuing other gold and precious metal projects in both British Columbia and Nevada."

Williams Creek will continue to explore its Barkerville property in the 2012-2013 Phase III project, currently in the planning stage. Phase III will also include trenching on its 100% owned Pine Properties in the Stanley, BC area to follow up on anomalous gold zones identified in several separate soil sampling programs. The Stanley and Van Winkle areas were significant placer gold producers during the Cariboo Gold Rush and, to date, no bedrock source has yet been identified.

The technical information in this news release has been reviewed and approved by consulting geologist John F. Childs, PhD., Childs Geoscience Inc. Consulting Economic Geologists of Bozeman Montana, a qualified person as defined in National Instrument 43-101.

About Williams Creek Gold Limited (WCX)

Visit www.WilliamsCreek.ca to learn more about Williams Creek Gold Limited.

Williams Creek Gold Limited 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, royalty and finance agreements.

Williams Creek Gold Limited owns 28 Crown Granted mineral claims in the immediate vicinity of Barkerville, BC in the Cariboo Mining Division. The Cariboo gold belt and the Barkerville Camp have a long history of gold production dating back to the 1800s. Historically the Barkerville Camp has reported gold production of 3.8 million ounces, including 2.6 million ounces from surface placer and 1.2 million ounces from lode mining. When placer gold production peaked in the late 1890s, Williams Creek Gold's Black Jack (District Lot 1B), Home Stake (District Lot 4B), Cornish (District Lot 1F) and Wintrip (District Lot 32F) Crown Granted mineral claims were among the first acquired in the early search for lode gold.

Williams Creek Gold Limited also owns a block of four mineral claims 17km west of Barkerville known as the Pine Properties. The Company has three Crown Granted mineral claims in the Kamloops Mining Division, two of which are adjacent to New Gold's New Afton project. Additionally, Williams Creek Gold Limited has a net 30% interest in th ATW diamond property in the MacKenzie Mining District of the Northwest Territories.

On behalf of the Board of Directors,

Michael R. Sonnenreich, Chairman and CEO

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events and conditions and therefore involve inherent risks and uncertainties. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our industry, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. All phases of the Company's operations are subject to environmental regulation and governmental approval and permits and there can be no assurance that the Company will obtain all the requisite permits for future development. Mining is an inherently risky business with large capital expenditures and cyclical metals markets.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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