Canadian company, Williams Creek Gold has signed a deal with Tyhee Gold to receive a 50% interest in the Big Sky property owned by Tyhee.
This property lies 17 km towards the north of Yellowknife, Northwest Territories in Canada. It includes six mining leases that stretch up to 597 ha and 17 claims, adding up to 2,406 ha in total.
In order to receive the 50% interest, Williams Creek Gold will need to spend at least $500,000 for the next five years for reconnaissance and development activities on the Big Sky property. Once these terms are completed, Tyhee Gold and Williams Creek Gold will sign a secondary joint venture deal for additional development of the property. Earlier, Williams Creek has supported Tyhee Gold by providing more than $2.7 million through private placements and these funds were used to develop Tyhee Gold's Yellowknife Gold Project.
Earlier, Tyhee Gold had conducted an exploration program on the Big Sky property and targeted two shear zones called the Oro Lake and WK zones that cut across the north section of the Kam Group Volcanic rocks. The adjoining Giant and Con mines extracted over 13 million oz of gold from chlorite carbonate schists that cut across the Kam Group volcanic rocks.
Back in 2007 and 2008, gold bearing mineralization was identified in a number of places over the WK Shear Zone. Gold values consisted of 5.87/gpt over 1.2 m and 8.69/gpt over 0.7 m. A chip sample obtained from a quartz vein returned 51/gpt over 1.0 m. Prior work on the Oro Lake Shear Zone featured trenching, prospecting, and diamond drilling. About 18/gpt was obtained from new trench samples on the Oro Lake Shear Zone.
Michael R. Sonnenreich, Williams Creek Gold Chairman and CEO, commented that the company is happy to partner with Tyhee Gold for the development of the Big Sky property, whose closeness to Yellowknife will help in planning exploration program.
Interim CEO of Tyhee Gold, Brian Briggs stated that the joint venture will allow them to develop the Big Sky property and at the same time will enable them to focus on the development of the Yellowknife Gold Project.