Williams Creek Gold Limited

Williams Creek Gold Limited

March 30, 2012 07:15 ET

Williams Creek Announces Joint Venture With Tyhee Gold Corp on Big Sky Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 30, 2012) - Williams Creek Gold Limited ("Williams Creek", "the Company" or "WCX") (TSX VENTURE:WCX) is pleased to announce it has entered into an agreement with Tyhee Gold Corp. to earn up to a 50% interest in Tyhee's Big Sky property. The Big Sky property is located 17km north of Yellowknife, Northwest Territories, Canada. The property consists of six mining leases covering 597 hectares (1,474 acres) and 17 claims totalling 2,406 hectares (5,936 acres).

Williams Creek Gold must spend a minimum of $500,000 over the next five years on exploration and/or development of the property in order to earn the 50% interest. Upon completion of these terms, Williams Creek Gold and Tyhee Gold will form a secondary joint venture ("Joint Venture") for the further development of the property. Williams Creek has previously supported Tyhee Gold through having advanced over $2.7 million in funding through private placements which has been used to advance Tyhee's Yellowknife Gold Project, which contribution will be recognized in the Joint Venture. The terms of the agreement are subject to approval by the TSX Venture Exchange.

Previous exploration on Big Sky by Tyhee Gold has focused on two shear zones known as the WK and Oro Lake zones that transect the northern portion of the Kam Group Volcanic rocks. The adjacent Con and Giant mines extracted more than 13 million ounces of gold from chlorite carbonate schists (shear zones) that transect Archean aged Kam Group volcanic rocks. During 2007 and 2008, Tyhee Gold drilled 39 holes for a total of 7,300 metres, into the WK Shear Zone. Gold bearing mineralization was discovered in several locations over the 4km length of the WK Shear Zone. Gold values included 8.69/gpt over 0.7 metres and 5.87/gpt over 1.2 metres. A chip sample across a quartz vein returned an assay of 51/gpt over 1.0 metres. Historical work on the Oro Lake Shear Zone included prospecting, trenching and diamond drilling. Recent trench samples on the Oro Lake Shear Zone returned up to 18/gpt.

Williams Creek Gold Chairman and CEO, Michael R. Sonnenreich, stated "We are extremely pleased to joint venture with Tyhee Gold on the Big Sky property. The property's close proximity to Yellowknife will assist with exploration planning and the previous work done on the property is exceedingly encouraging."

Brian Briggs, interim CEO of Tyhee Gold, added "We are very pleased to reach this agreement with Williams Creek for the development of the Big Sky property. We will now be able to advance Big Sky while continuing to focus on the feasibility study and development of our Yellowknife Gold Project (Ormsby, Nicholas and Clan Lake properties). Williams Creek has been a strong supporter of Tyhee and we look forward to continued good relations".

Technical information contained in this release was provided by Val Pratico, B.Sc. (Geology), P.Geol., Chief Geologist for Tyhee Gold Corp, a qualified person as defined under 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 the 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.

Contact Information

  • Williams Creek Gold Limited
    Michael R. Sonnenreich
    Chairman and CEO
    (778) 370-1393