Gold Ore Sales Exceed Exploration Expenditures in 2011 at LKA's Golden Wonder Mine Exploration program yields over 1,800 ounces of gold to date. Ore grades appear to be rising significantly as previous production zone is extended.

GIG HARBOR, Wash., Jan. 31, 2012 /PRNewswire/ -- LKA International, Inc. (OTCQB: LKAI) estimates that gold ore sales more than covered its exploration expenditures in 2011. Gold delivered during the Company's 2011 exploration program exceeded 755 ounces up from 600 ounces in 2010. The current exploration program is conducted through systematic drilling and advancing on the vein(s) at several levels within the mine. As vein material (ore) is removed during this process it is crushed and sold to offset the Company's exploration costs. Total ounces of gold delivered and/or processed since the start of the current exploration program in 2009 is 1,818 ounces.

Crushed vein material from January's exploration efforts (approximately 20 tons) yielded the following results:

Sample

Au

Au (grams)

C10 1-19 #1

6.88

195.04

C10 1-19 #2

3.64

103.19

C10 1-19 #3

10.9

309

C10 1-19 #4

5.84

165.56

 

 

 

C10 1-19 #1 ck

6.84

193.91

C10 1-19 #2 ck

3.65

103.47

C10 1-19 #3 ck

10.8

306.17

C10 1-19 #4 ck

5.70

161.59

Units

 Troy oz/ton

 grams/ton

Detection Limit

0.002

 

Method

FA-Au-01

 

LKA expects to significantly expand its exploration program during 2012 through its previously announced arrangement with Premier Gold Mines. Premier, through a recently signed letter of intent with LKA, will supervise an exploration program designed to test the lateral extent and depth of the Golden Wonder's vein system in those areas located 60 meters beyond the current workings. Prior field studies, drilling and geochemical sampling have indicated Telluride mineralization well beyond the presently-known vein structure.

The amount of high-grade enrichment consistently encountered beyond the mine's previous production zones leads management to believe that a much larger deposit (greater than the 137,000 ounces of prior production) may exist within the Company's claims. Another factor supporting this belief is the extremely small area from which the previous production was derived...approximately 10,000 square feet. Golden Wonder production records (1998-2011) can be found in the "LKA Investor Presentation-Dec, 2011" under the "Investors" tab on the Company's website: www.lkaintl.com

About LKA and the Golden Wonder Mine

From 1998 through the second quarter of 2006, the Golden Wonder mine produced over 133,701 ounces (82% of which came during the period of 2002-2006) from ore with an average grade of 16.01 ozs. (454 grams) gold per ton. Upon resuming operations (exploration) in the first quarter of 2009, LKA has shipped ten bulk ore samples containing more than 1,439 ounces of gold. The ore grades encountered during LKA's exploratory production have averaged approximately 2 ounces (56.7 grams) gold per ton. Historically, the high-grade nature of Golden Wonder ore has allowed for "direct shipment" with no milling or concentrating required. Investors are cautioned that a commercially viable ore reserve has yet to be established and there can be no guarantee that one will be.

Safe Harbor Statement

LKA's plans to resume/expand Golden Wonder production are subject to a number of conditions including, but not limited to, favorable geology, successful exploration efforts, favorable financing terms/availability, permits, gold prices, market conditions, etc. Mining and related activities are inherently high-risk endeavors and there can be no assurance that LKA will be successful. This press release contains certain forward-looking statements. Statements contained in this press release that are not purely historical are considered forward-looking. When used in this press release, the words "plan", "target", "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding LKA International, Inc.'s future plans for exploration and/or production, future expenses and costs, future liquidity and capital resources, and estimates of ore, ore grades and mineralized material. All forward-looking statements in this press release are based upon information available to LKA International, Inc. on the date of this press release and the Company assumes no obligation to update any such statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company's reports filed with the Securities and Exchange Commission.

Company Contact

LKA International, Inc.
Kye Abraham
(253) 514-6661
info@lkaintl.com
http://www.lkaintl.com

Investor Contact

Riverview Capital
Jonathan Barkman, President
(610) 390-2199
jbarkman@riverviewcapitalent.com

SOURCE LKA International, Inc.



RELATED LINKS
http://www.lkaintl.com

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