Gold Values From Exploration Program Exceed $1.27 Million in 2011 at LKA's Golden Wonder Mine
Mine exploration program yields a profit (project level) in 2011. Average delivered ore grades exceed 1.46 ounces (41.39 grams) per ton.
GIG HARBOR, Wash., March 29, 2012 /PRNewswire/ -- LKA International, Inc. (OTCQB: LKAI) announced that the total value of gold delivered from its exploration program at the Company's Golden Wonder mine exceeded $1.27 million (average delivered price of $1,616.96) during 2011. This included one ore shipment that was in process but not yet settled at year-end that will be recorded (revenue and expenses) in the first quarter of 2012. Recorded gold sales for the year were $851,000 vs exploration and related expenses of $667,510. Investors can find detailed ore shipment information under the "Projects" tab "Golden Wonder" on the Company's website at: www.lkaintl.com or in the "Issuer Presentation" under the "Investors" tab. Detailed financial information will be made available in the Company's 10-K filed later this month.
LKA expects to significantly expand its exploration program to locate additional high-grade ore zones during 2012 through its previously announced arrangement with Premier Gold Mines (PG:TSX). Premier 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 LKA's current workings. 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) exists within the Company's claims. LKA is seeking relationships with U.S. Broker-Dealers to fund the expanded exploration program with Premier.
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 ounces (454 grams) gold per ton. Upon resuming operations (exploration) in the first quarter of 2009, LKA has shipped thirteen bulk ore samples containing more than 2,040 ounces of gold. The ore grades of these shipments have averaged 1.56 ounces (44.22 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.
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.
Jonathan Barkman, President
SOURCE LKA International, Inc.
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