GIG HARBOR, Wash., Nov. 17, 2015 /PRNewswire/ -- LKA Gold Incorporated (OTCQB: LKAI) reports that it made a small shipment of 35.2 dry weight tons of crushed vein material to Klondex's Midas mill during the third quarter. The grade of the shipment was 2.01 ounces (62.5 grams) gold per ton. Year-to-date shipments made to Klondex were 118.3 tons at an average grade of 1.95 ounces (60.6 grams) gold per ton.
Shift in Exploration Focus
During the quarter, LKA shifted its focus from exploratory mining to prepare for a surface drilling program. The new program will be designed to locate high-grade structures within the Carve-Out area defined by the exploration agreement between LKA and Kinross Gold USA executed last July. Drilling will be undertaken upon evaluation of a report detailing certain features found on LKA claims during a fairly comprehensive surface evaluation by Kinross. The Kinross report is expected to be delivered later this month.
According to LKA President, Kye Abraham, "This is the first time a detailed surface evaluation of our Golden Wonder claims has been conducted outside of our immediate operating area. The wide area evaluated by Kinross geologists over the past four plus months included all of our claims AND a sizeable portion of the Uncompahgre Caldera. This new data will add significantly to our understanding of this unusual deposit…and the hunt for the next high-grade structure."
More discussion on the LKA-Kinross exploration agreement 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 ore shipments can be found on the Home Page of the Company's website at: www.lkagold.com
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 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.
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.
SOURCE LKA Gold Incorporated