Williams Creek and New Gold test Afton target

VANCOUVER – A joint drilling program by Williams Creek Explorations (WCX-V) and New Gold (NGD-T) will test a geophysical anomaly straddling the boundary of their respective holdings in the Afton mine area near Kamloops, B.C.

A major mining company produced copper and gold from the open-pit Afton mine from 1978 to 1987. The mineral rights underlying the mine are now owned by New Gold (previously known as DRC Resources), which is proposing to develop a new underground mine below and adjacent to the old Afton pit. The $18-million feasibility under way will include a new resource estimate to replace the previous estimate of 68.7 million tonnes grading 1.08% copper and 0.85 gram gold per tonne.

Williams Creek’s claims are within the area controlled by New Gold, and immediately south of the Afton pit and north of the smaller Pothook pit. The proposed drilling program will consist of two holes, each at 800-metre depths, to test a geophysical anomaly identified by a joint program carried out by the companies last year. Williams Creek plans to drill another two holes to the same depths on its wholly owned property.

The 2005 geophysical program consisted of a natural audio frequency magnetotellurics (NSAMT) survey, which allows for resolution of geological features to greater depth than other techniques. A strong conductivity anomaly (interpreted to represent concentrations of sulphide minerals) was identified, and traced to 700 metres beneath the surface, on claims held by each of the companies.

The Afton mine-project area is well serviced by extensive infrastructure, including haul roads to known zones and past-producing deposits, and is near a major highway and a few hours drive from port facilities in Vancouver.

Williams Creek also holds a 37.5% interest in the ATW diamond project in Canada’s Northwest Territories, with several partners. A sonic overburden drilling program is under way to test a potential source of an indicator-mineral train known to be at least 20-km long.