Golden Wonder First Quarter Ore Deliveries Up 183% Over Year-Ago Period. Ore Grades Continue To Rise.
LKA's exploration program continues to encounter higher grades at greater distances from previous production zone, which may indicate much larger gold deposit.
GIG HARBOR, Wash., May 7, 2012 /PRNewswire/ -- LKA International, Inc. (OTCQB:LKAI) announced that ore deliveries by its Golden Wonder mine operator, Coal Creek Construction, exceeded 344 ounces in the first quarter of 2012 vs. 122 ounces delivered/sold during the first quarter of 2011. The gross value of gold ore delivered was $575,462 before processing and milling charges. This represents a 215% increase over the same period a year ago. In 2011 thru Q-1 2012, ore sales (from bulk sampling) more than offset the expense of LKA's exploration program.
Average ore grades from first quarter ore deliveries (sales were recorded in subsequent quarter) were 2.48 ounces (70.31 grams) gold per ton, which significantly exceeded the 2011 full-year average grade of 1.46 ounces (41.39 grams). This is partially attributed to the sporadic but increasing occurrence of high-grade ore pockets encountered as crews advance along the Golden Wonder vein structure beyond the previously known production zones. Vein material is extracted as part of the exploration program designed to determine the width, depth, and lateral extent of the deposit. LKA management is encouraged by the higher ore grades encountered at significant distances beyond the mine's previous production zones and believe it is an indicator that the Golden Wonder deposit could be much larger than previously believed. More conclusive information will be obtained as exploration progresses.
First quarter 2012 ore shipments were made to Kinross' Kettle River milling facility in Republic, WA.
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 fourteen bulk ore samples containing more than 2,068 ounces of gold. Historically, the high-grade nature of Golden Wonder ore has allowed for "direct shipment" with no milling or concentrating required. Investors are cautioned that additional exploration is required and a commercially viable ore reserve has yet to be established. The Company continues to evaluate funding proposals to expand its exploration program.
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.
Riverview Capital Enterprises
Jonathan Barkman, President
SOURCE LKA International, Inc.
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