Williams Creek Gold Limited

Williams Creek Gold Limited

July 27, 2011 15:15 ET

Williams Creek Gold Limited Releases Q1 Financial Statements and Management's Discussion and Analysis

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 27, 2011) - Williams Creek Gold Limited (TSX VENTURE:WCX) ("Williams Creek", "WCX", or the "Company") is pleased to announce the release of its unaudited Financial Statements as well as its Management's Discussion and Analysis for the three month period ended April 30, 2011. Williams Creek reports a loss of $149,888 mainly as a result of increased exploration activity on the Company's Barkerville Prospect. The Company derived a trading gain of $58,983 on the sale of investments which was offset by an unrealized holding loss of $132,927 on share warrants. The Company also completed the acquisition of the Pine Properties, Cariboo Mining Division British Columbia, and continued with exploration work on its Barkerville Prospect. At the end of the quarter, current assets were $7.05 million and long-term investments were $1.99 million against total current liabilities of $0.22 million.

The unaudited Financial Statements and Management's Discussion and Analysis are available on the Company's website (www.williamscreek.ca) under "Company Filings" and will be available shortly on Sedar (www.sedar.com).

The quarter marked Williams Creek's transition to International Financial Reporting Standards ("IFRS"), resulting in various changes to the way in which the Company reports its financial information. The changes are summarized in note 15 of the Company's Financial Statements. One significant difference is that under Canadian GAAP Williams Creek was due to recognize a gain of $1,052,000 on its long-term investment in Tyhee Gold Corp. ("Tyhee") during the quarter ended April 30, 2011. Under IFRS, however, that gain was recognized during the quarter ended January 31, 2011. As a result, while the way in which Williams Creek accounts for the value of the Tyhee investment did not change, the date at which the appreciation of the Tyhee investment was recognized did in fact change. Under Canadian GAAP, Q1 earning would have been buttressed by the gain on the investment in Tyhee.

"I am very pleased to see the rate at which the Company is accelerating its exploration activity in Barkerville," said Michael Sonnenreich, Chairman and CEO of Williams Creek. "These financial statements show that we are responsibly managing costs while ramping up our exploration activities. The Company is nearing the completion of Phase I of its exploration program on its Barkerville Prospect and its Pine Property, and, as these financial statements show, is doing it on a carefully managed budget."

About Williams Creek Gold Limited (WCX)

Visit http://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 twenty-eight 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 to be materially different from any future 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
    (604) 688-1320 (FAX)