Williams Creek Announces Acquisition of the Pine Group of Properties
Williams Creek Explorations Limited is pleased to announce that it has entered into an agreement to acquire a 100% interest in claims known as the Pine Group (“the Pine Property”), an exploration property located in the Cariboo Mining Division in Central British Columbia, approximately 17 km southwest of the historic gold mining town of Barkerville.
The Pine Property is comprised of four mineral tenures covering approximately 750 hectares near the historic gold producing towns of Stanley and Van Winkle, B.C. This area was the site of productive placers containing coarse gold considered to have been locally derived from massive sulfide sources, although the bedrock sources have yet to be identified. Provincial Highway 26 extends east-west across the property providing excellent road access.
Williams Creek acquired 100% interest in the Pine Property by making a one-time cash payment to holder of the mineral tenures Melvin L. Zeiler, who will retain a 2% Net Smelter Return Royalty (NSR). Williams Creek retains the option to purchase 100% of the NSR for $1.5 million. A transaction reflecting these terms closed on April 4, 2011.
Old underground workings with sizable dumps are evidence of past production. A soil grid was conducted on the property in 2005 that defined a gold-in-soil anomaly approximately 200 meters wide by 300 meters long with gold values up to 350 ppb. The soil grid was expanded in 2006 and the gold anomaly was expanded to 450 meters in length with gold-in-soil values up to 2070 ppb. No work has been done since 2006 and the soil anomalies remain open to the north and south.
“The Pine Property, with a soil anomaly of this size and tenor, is especially significant in a district such as the Cariboo, which has produced considerable amounts of gold from vein and replacement ore bodies and related placer deposits,” said Michael Sonnenreich, Chairman of the Board and CEO of Williams Creek.
Williams Creek will undertake a program of mapping, soil sampling and trenching in the 2011 field season to test the potential of the property. The program will extend the soil grid to better define the extent and source of the main soil anomaly and satellite anomalous zones at the margins of the grid. The 2005-2006 soil grids cover only about 3% of the Pine Property.
“The proposed work on the Pine Property is a good fit with WCX’s planned 2011 drilling program on its crown granted properties adjacent to Barkerville, approximately 17 km to the northeast,” added Mr. Sonnenreich. “Moreover, this work is an important component of Williams Creek’s three-part strategy of exploration, equity and joint venture investment, and financing.”
The technical information contained in this news release was prepared by Williams Creek senior geologist John F. Childs, Ph.D., Childs Geoscience Inc. of Bozeman, Montana, who is a “Qualified Person” as defined under National Instrument 43-101.