VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 25, 2012) - Williams Creek Gold Limited (TSX VENTURE:WCX) ("Williams Creek", "WCX", or the "Company") is pleased to announce the release of its Audited Financial Statements as well as its Management's Discussion and Analysis for the three and twelve month periods ended January 31, 2012.
The documents are available on the Company's website (www.williamscreek.ca) under "Company Filings" and will be available shortly on Sedar (www.sedar.com).
For the fiscal year ended January 31, 2012, Williams Creek is reporting a net loss of $811,270 and a comprehensive loss of $500,776 compared to net income of $221,852 and comprehensive income of $692,594 for the fiscal year ended January 31, 2011. The Company is reporting, operating expenses of $704,569; other income of $161,415; unrealized holdings losses of $199,243 relating to investments which are carried in the Company's accounts at fair value and deferred income tax expense of $68,873 relating to holding losses of $500,776 on its long-term investment.
As of January 31, 2012, Williams Creek had cash and cash equivalents, investments held for trading, as well as a long-term investment for a total value of $5,998,072, as compared to $7,328,831 for the fiscal year ended January 31, 2011. The above-mentioned long-term investment acquired for a total cost of $2,682,150 had a market value of $3,020,766 as at January 31, 2012. Current liabilities were $125,025 compared to $267,843 for the financial year ended January 31, 2011.
"It is gratifying that in its first full year of exploration since the company reorganization, Williams Creek is able to announce its annual financial statements have received unqualified approval from the its auditors SmytheRatcliffe," stated Chairman Michael Sonnenreich.
Operational highlights during the financial year ended January 31, 2012 included:
- The Company increased exploration work on its Barkerville Project and incurred $1,656,787 on exploration and diamond drilling during the year.
- On January 18, 2012 the Company announced the successful completion of its Phase II 4,819 meter diamond drilling project at Barkerville, bringing the total meters drilled in 2011 to 9,745.
- During the year, the Company incurred $81,916 in property evaluation costs in areas of interest to the Company.
- During the year, the Company recognized in other comprehensive income an unrealized holding loss on available-for-sale investments of $36,426.
- On September 9, 2011, Williams Creek announced that it had commenced a 4,572 to 7,620 meter (15,000 to 25,000 feet) diamond drill program on its Barkerville Prospect (Williams Creek News Release, September 9, 2011).
- On September 6, 2011, Williams Creek announced that it had staked 32 unpatented lode mining claims in Pershing County, Nevada (Williams Creek News Release, September 6, 2011).
- On July 29, 2011, Williams Creek increased its investment in Tyhee Gold Corp. exercising its warrants to acquire 5,000,000 shares at a price of $625,000 (Williams Creek News Release, July 29, 2011).
- Williams Creek held its Annual General Meeting on July 14, 2011.
- On July 7, 2011, Williams Creek announced that it had encountered a pyrite bearing-quartz vein system with significant gold grades in the Stouts Gulch area (Williams Creek News Release, July 7, 2011).
- On June 14, 2011, the Company changed its name to "Williams Creek Gold Limited" (Former names included "Williams Creek Explorations Limited" and "Williams Creek Gold-Quartz Mining Limited") (Williams Creek News Release, June 14, 2011).
- On May 4, 2011, Williams Creek undertook a 5,000 meter diamond drill program on its Barkerville Prospect (Williams Creek News Release, May 4, 2011).
- On April 8, 2011, Williams Creek acquired the Pine Property, a 750 hectare package of four mineral tenures near Stanley and Van Winkle, B.C., approximately 17km southwest of Barkerville. During the year Company incurred $112,820 in acquisition and development of these properties. (Williams Creek News Release, April 8, 2011)
Subsequent to the conclusion of the financial year ended January 31, 2012, the Company acquired 20 mineral units in the Cariboo and Omineca Mining Divisions British Columbia from New Gold Inc. and entered into an agreement with Tyhee Gold Corp. ("Tyhee") to earn a 50% interest in Tyhee's Big Sky Property located in the Northwest Territories by incurring $500,000 in exploration expenditures over a five year period.
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.
Williams Creek Gold is earning a 50% interest in the Big Sky Property north of Yellowknife, NWT. Its joint venture partner is Tyhee Gold Corp.
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.