LKA Completes Phase I Donation of Historic Ute-Ulay Town Site to Hinsdale County
GIG HARBOR, Wash., Oct. 8, 2012 /PRNewswire/ -- LKA International, Inc. (OTCQB: LKAI) announced today that it signed a deed to convey the historic Ute-Ulay town site to Hinsdale County, Colorado.
The property conveyance completes phase one of a two-part arrangement detailed in non-binding letter of intent signed last November 23, 2011 ... as previously announced.
Phase two of the donation will include the land, reclamation permits, buildings and structures known as the Ute mill site and includes the original blacksmith shop, assay lab, powerhouse and mill buildings. Some of these structures date back to the late 1800s when 250-300 miners worked the rich silver veins of Ute and Ulay mines, the first significant silver discovery in the Lake City mining district. The mines and mill were the primary catalyst for the establishment of Lake City, the seat of Hinsdale County, and home to most of the miners who worked the mines intermittently from 1874-1940.
The intent of LKA's donation is to enable Hinsdale County to restore and preserve one of the only remaining mining camps left in Colorado. This arrangement between LKA and Hinsdale County does not affect the on-going exploration program at the Company's Golden Wonder mine, approximately seven miles away.
Interested parties can find donation details on LKA's website at:
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 sixteen bulk ore samples containing more than 2,700 ounces of gold derived from the current exploration program. The ore grades of these shipments have averaged 1.4 ounces (39.7 grams) gold per ton. To date, ore shipments have funded LKA's entire exploration program. LKA's objectives are to re-establish an ore reserve and return the mine to commercial production. 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.