Williams Creek Gold Limited

Williams Creek Gold Limited

June 28, 2012 07:15 ET

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

MONTREAL, QUEBEC--(Marketwire - June 28, 2012) - Williams Creek Gold Limited ("Williams Creek," or the "Company") (TSX VENTURE:WCX) is pleased to announce the release of its unaudited Financial Statements as well as its Management's Discussion and Analysis for the first quarter ended April 30, 2012. These financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS).

For the first quarter, the Company is reporting a net loss and comprehensive loss of $254,391 and $322,203, respectively. Williams Creek recorded an unrealized loss on investments of $108,820, and incurred $64,644 in exploration expenditures as a result of increased exploration work at its properties, specifically its Barkerville Project. Additionally, Williams Creek increased its mineral property base through the acquisition of the Ahbau Creek and Chubby Bear claims, located in the Cariboo and Omincea Mining Divisions Province of British Columbia. The Company continues to hold a strong balance sheet, with assets totaling $9.4 million against liabilities of $0.61 million. During the quarter, the Company also increased its short term investment in equity securities by $241,460.

First Quarter 2012 Highlights:

  • Williams Creek completed the purchase of a 100% interest in the Ahbau Creek and Chubby Bear properties from New Gold Inc. The Company began exploration programs at Ahbau Creek and Chubby Bear after April 30, 2012.
  • On May 25, 2012, the Company received TSX approval of its Big Sky Joint Venture with Tyhee Gold Corp. to earn a 50% interest in the property. Exploration on the Big Sky Joint Venture was planned after April 30, 2012 and began in June 2012.
  • The Company received its exploration permit for trenching and drilling on its Pine Properties. Trenching is planned to begin in July 2012.
  • The Company acquired, through staking, a 1,662 hectare block of mineral claims known as the Ahbau Lake property.

Michael R. Sonnenreich, Chairman and CEO, commented, "The Board of Williams Creek is pleased with the progress the Company has made in the first Quarter of 2012, with the purchase of two prospective properties, Ahbau Creek and Chubby Bear, at very favorable terms from New Gold Inc., the staking of the Ahbau Lake property in the Cariboo, the joint venture on Big Sky with Tyhee Gold Corp. and progress on its Pine Properties permit. We are looking forward to an active and productive season beginning in the second quarter and view the diversification of projects as a positive measure toward increasing shareholder value."

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

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 known as the Barkerville Project 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. Williams Creek Gold Limited also owns the Ahbau Creek, Chubby Bear and Ahbau Lake claim groups in central British Columbia, as well as the BOPS claims in Nevada.

Williams Creek Gold is earning a 50% interest through a joint venture with Tyhee Gold Corp. in the Big Sky Property north of Yellowknife, NWT.

Additionally, Williams Creek Gold Limited has a net 30% interest in the ATW diamond property in the MacKenzie Mining District of the Northwest Territories. Williams Creek also holds the BOPS Project consisting of 32 unpatented lode mining claims in Pershing County, Nevada.

On behalf of the Board of Directors,

Michael R. Sonnenreich, Chairman and CEO

Williams Creek Gold 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. operational 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.

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