Drill results should boost Williams Creek reserves

Initial results from this year’s drill program have partners Western Copper Holdings (VSE) and Thermal Exploration (ASE) predicting an increase in reserves at the Williams Creek copper-oxide project 25 miles from Carmacks, Yukon.

Encouraging results were reported from drilling on the 12 zone where three holes intersected potentially economic mineralization over a strike length of 1,000 ft. The zone has been followed by drilling, trenching and geophysics for 2,500 ft. along strike, and is fault offset at either end. The first hole, 12-01, intersected 133 ft. grading 0.85% copper, which includes 100 ft. of 0.95% copper. The second hole intersected 79 ft. of 0.74% copper and 27 ft. of 0.53% copper, while the third intersected 44 ft. of 0.56% copper and 28 ft. of 0.68% copper.

With widths in excess of 100 ft., the partners say the 12 zone “could add substantially” to the reserve of the No. 1 zone, which hosts 11.6 million tons grading 1.08% copper. The bulk of previous work on the property has been focused on the No. 1 zone.

Two holes were drilled to test the No. 4 zone, 500 ft. southeast of the No. 1 zone. Results include 69 ft. grading 0.77% copper, 36 ft. of 0.57% copper, and 55 ft. of 0.32% copper.

Based on recent drilling and previous trenching, the No. 4 zone is estimated to contain a reserve in excess of 500,000 tons. Drilling is continuing on the property to test the strike extent of the No. 1 zone, and a number of geophysical targets.

Environmental, geotechnical, metallurgical and prefeasibility engineering are also in progress. Once the current program is completed, Western will vest its 50% interest. At this point, the companies will each contribute 50% to future expenditures.

The Williams Creek property is in moderate terrain, and can be reached by road from Carmacks. The partners aim to develop reserves amenable to open pit mining and processing using solvent-extraction electrowinning (SX-EW). Teck (TSE), Western Copper’s largest shareholder, recently exercised its warrant to purchase an additional 180,000 shares of the company at $1.20 per share. The proceeds of $216,000 will be added to the company’s treasury to fund ongoing exploration at Williams Creek.

The junior considers itself well funded to meet its obligations at Williams Creek, and to begin evaluating the Copper Basin project in California. Western has an option to acquire a 100% interest in this project which hosts preliminary reserves of 12.5 million tons grading 0.55% copper.