LKA Gold Reports Substantial Increase in Grade and Ounces Derived From Exploration Program During First Half of 2014 Gold grades from extracted vein material averaged 2.35 ounces (66.62 grams) gold per ton, up 112% over same period last year.
LAKE CITY, Colo., July 17, 2014 /PRNewswire/ -- LKA Gold Incorporated (OTCQB:LKAI) reports that during the first half of 2014, the Company's exploratory mining program yielded approximately 774 ounces of gold from 329 tons of gold enriched vein material. This represents an increase of 1.24 ounces in average grade (ounces of gold per ton) and a 281 ounce increase (57%) over the same period last year. Approximately 56% of this material has been shipped and sold. The remaining material will be sold during the current quarter. Final values of stockpiled vein material (grade and ounces) may, and usually does, vary upon actual settlement.
According to LKA President, Kye Abraham, "While the number of ounces extracted in any given period during the exploration program is significant in terms of paying the bills, it's not really a meaningful measure of this project's potential. The grade of the vein material is a much more interesting factor. As vein enrichment increases, so does the possibility that we're closing in on a source."
More discussion on this and related subjects can be found in the "President's Email Updates" and "President's Archive" on the Company's website at: http://lkagold.com/Management_Team_-_LKA_Inter.html
Details of Golden Wonder commercial and exploratory gold shipments can be found on the Home Page of the Company's website at: www.lkagold.com
Shipments of crushed vein material during the first half of 2014 were made to Kinross and TCB International. Second quarter, 2014 financial results will be reported in LKA's next 10-Q which will be filed later this quarter.
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 extracted and/or shipped (sold) twenty-nine bulk samples of crushed vein material containing nearly 4,200 ounces of gold with a net value, after processing, of over $4.6 million. The Company continues to seek and 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 and there can be no guarantee that the Company will be successful in this regard.
Safe Harbor Statement
LKA's plans to resume commercial gold production at its Golden Wonder mine 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," "potential," "possible," "approximate," "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