Golden Wonder Ore Sales Produce a Profit for LKA in Third Quarter
Exploration program yields over 1,439 ounces of gold to date.
GIG HARBOR, Wash., Nov. 15, 2011 /PRNewswire/ -- LKA International, Inc. (OTCQB: LKAI) announced today that it made a profit through the sale of gold bearing ore during the third quarter. Since 2009, LKA has been engaged in an exploratory mining program designed to test for extensions of the previous production zones at the Company's Golden Wonder mine located near Lake City, CO.
LKA President Kye Abraham considers the relatively modest profit of $41,050 on ore sales of $468,892 (Net Smelter Receipts) during the quarter to be a significant step toward re-establishing commercial reserves at this high-grade, gold telluride deposit. Average ore grades for the third quarter were 1.96 oz (55.6 grams) gold per ton. All ore shipments during the quarter were sold to Kinross's Kettle River Operations at Republic, WA.
As previously announced, LKA intends to expand its exploration effort in 2012 through an arrangement with Premier Gold Mines involving a $2 million, Premier supervised, exploration program designed to determine the potential of Golden Wonder structure over a wide area beginning 60 meters from LKA's current operations. LKA expects to fund the initial $2 million phase of the program and Premier will have certain rights to earn up to a sixty percent joint venture interest through exploration and mine development expenditures of an additional $15 million. This amount includes certain payments and reimbursements to LKA. A comprehensive evaluation of this property, as proposed, has not previously been conducted.
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.
Jonathan Barkman, President
SOURCE LKA International, Inc.
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