Williams Creek Gold Limited

Williams Creek Gold Limited

March 07, 2012 07:15 ET

Williams Creek Gold Acquires New Properties from New Gold Inc. in BC's Central Interior

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2012) - Williams Creek Gold Limited (TSX VENTURE:WCX) ("Williams Creek", "the Company" or "WCX") is pleased to announce that it has entered into an arms length agreement to acquire a 100% interest from New Gold Inc. in two large exploration claim groups known as Ahbau Creek and Chubby Bear. The properties are located in the Cariboo and Omineca Mining Divisions in Central British Columbia. In addition, four mineral units known as the Ahbau Lake group, totaling 1,662 hectares, were recently staked by Williams Creek west of Ahbau Lake.

Williams Creek acquired a 100% interest in the Ahbau Creek and Chubby Bear properties by making a one-time cash payment to New Gold Inc., who will retain a 2% Net Smelter Royalty (NSR). Williams Creek retains the option to purchase 1% of the NSR for $1 million. A transaction reflecting these terms closed on March 6, 2012.

The Ahbau group consists of 13 units totaling 6,218 hectares located approximately 25 kilometers Northeast of Quesnel, straddling the Cariboo and Omineca regions. The Chubby Bear group consists of seven units totaling 4,949 hectares, located approximately 40 kilometers East of Quesnel, in the Cariboo region. Both properties cover portions of the Spanish and Eureka thrust fault systems, which have long been recognized for their exploration potential as well as for historic placer gold production. Both of the claim groups were part of the portfolio of mineral properties New Gold received with the acquisition of Richfield Ventures Corp.

During extensive prospecting conducted by Richfield Ventures, two geological target zones with elevated Platinum Group Element (PGE) values were discovered within sections of the Quesnel Trough. These areas have never been tested. Both are in close proximity to the Spanish and Eureka thrust systems, which are recognized as major continental breaks. A third area of interest in the west-central portion of the Ahbau property has been referred to historically as the "discovery zone".

The first geologic target, on the Chubby Bear property, has kaolinitic and possible albite hydrothermal alteration in an aplitic dyke. The relationship of this alteration to the Spanish thrust trend warrants follow up.

The second geologic target occurs in the slope above the southwest shore of Ahbau Lake, where a "large" rusty gossan (extent unknown) exists within close proximity to the projection of the Spanish Thrust. This area was identified as part of the previous work by Richfield Ventures and was recently re-staked by Williams Creek. Gossans can traditionally herald significant zones of mineralization and the nature of this occurrence within the Quesnel Trough merits serious investigation.

Both geologic targets are unusual for the Quesnel Terrane, and therefore, with no apparent model for PGE values reported in the area, they are considered to be high priority exploration targets.

Gold mineralization on the Ahbau Creek property was defined for more than a kilometer extending from the "discovery zone" northwestward along a shear zone. This has been the site of exploration and drilling by several companies over a period of more than 40 years. A non NI43-101 compliant "drill indicated" potential of 45,355 tons at a grade of 10.2 g/t gold was published for this area in 1988.

Williams Creek Chairman and CEO, Michael Sonnenreich, stated, "We believe these acquisitions add to our portfolio of interesting exploration properties in the Quesnel and Barkerville areas. We intend to move forward with exploration activities this summer." Williams Creek will undertake soil sampling programs early this summer to follow up on these anomalies.

The technical information contained in this news release was prepared by John F. Childs, PhD, of Childs Geoscience Inc., Consulting Economic Geologists of Bozeman, Montana and Robert E. Reid, P.Geo., who are both "Qualified Persons" as defined under National Instrument 43-101. Reid conducted the original prospecting programs in 2000 and 2001 for Richfield Ventures Corp.

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 of Central British Columbia. 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 Mine 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

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