GIG HARBOR, Wash., March 4, 2014 /PRNewswire/ -- LKA Gold Incorporated (OTCQB:LKAI) as previously announced, Golden Wonder mine operator, Coal Creek Construction, continues to probe a high-grade vein structure in the North Raise area above the mine's 6th level. A limited number of vein assays taken at the commencement of the current operation, in this raise, averaged 10.37 ounces (294 grams) per ton.
Subsequently, thirty-six assays derived from the first 60 dry weight tons of this material, averaged 3.03 ounces (85.9 grams) gold per ton. Grade fluctuations in the vein and dilution (waste material) during the mining process account for most of the difference between vein assays and crushed ore assays.
According to LKA President, Kye Abraham, "The level of gold enrichment we're consistently encountering in this area is exciting. We're anxious to determine the length and vertical extent of this structure. It's right on trend and at the right elevation. Even if it doesn't prove to be the next big ore chute, it's a strong indicator that we're moving in the right direction."
It is LKA's belief, based upon prior experience, that when veins carrying gold values at these levels converge, vein widths widen (ore chute) and gold enrichment increases dramatically. The previous ore chute carried an average ore grade of 16.01 ounces gold per ton and yielded 133,000 ounces.
About LKA's exploration program at its Golden Wonder Mine
Vein material is extracted as crews follow the volcanic vent system along the wall of the Uncompahgre Caldera. This method of exploratory mining and underground drilling proved successful in locating the first commercial ore body which yielded more than 133,000 ounces of gold from a single ore chute measuring less than 10,000 cubic feet. From 1998, through the second quarter of 2006, the average grade of Golden Wonder ore was 16.01 ozs. (454 grams) gold per ton. LKA believes that additional such ore chutes may exist on its mining claims. Upon resuming exploratory operations in the first quarter of 2009, LKA has shipped twenty-nine bulk ore samples containing nearly 4,000 ounces of gold with a net value, after processing, of over $4.4 million. The Company is continuing to evaluate financing options to expand/accelerate this program. Investors are cautioned that the Company continues to generate substantial losses and additional funding and exploration work is required. 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 Gold'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 Gold 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 Gold Incorporated