LKA Provides Details of Golden Wonder Mine Expansion Plans

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    GIG HARBOR, Wash., Jan. 31 /PRNewswire-FirstCall/ -- LKA International,
 Inc. (OTC Bulletin Board:   LKAI) provides certain details of its plans to
 expand the Company's Golden Wonder Mine located in Lake City, CO.
     As previously announced, LKA is proceeding with its plans to expand the
 size and productive capacity of its Golden Wonder Mine by developing a new
 production level approximately 1,000 vertical feet below the Mine's 6th level
 (the current production level.  See link below of "GW Cross Section 3"
 hereinafter, the "Diagram").
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20060131/LATU084 )
 
     Current Operations
     The red cross hatched section of the Diagram represents the producing area
 within the Mine.  Since 1997 this has been the main zone of production and is
 currently being mined by LKA's operator, Au Mining, LLC.  Production to date
 from this area has exceeded 121,055 ounces of gold.  The weighted average
 grade of all ore produced from this area has been 14.19 ounces of gold per
 ton.  At current production rates this area of the Mine produces
 24,000 - 27,000 ounces of gold per year.  2005 production was 25,543.31 ounces
 of gold.  LKA and its operator, Au Mining, expect that production from this
 area is sustainable for the next couple of years without additional
 exploration and/or development.
 
     Future Operations (projected)
     Beginning in late 2004, LKA acquired additional claims and began the
 permitting process for a new ore pad (on-surface loading and crushing area)
 located approximately 1,000 feet below the Golden Wonder's 6th level.  From
 this new ore pad LKA and its operator expect to drive a drift (horizontal)
 approximately 4,800 feet to intersect the current Golden Wonder structure (see
 "LKA Level" on Diagram).  Assuming successful contact with the Golden Wonder
 Structure, this new drift will serve as the new production level for the next
 6-8 years.  With the experience gained through mining over several years
 covering 500 vertical feet and a strike length of 100 feet within the Golden
 Wonder structure, LKA anticipates that the new "Target Production Zone" will
 contain approximately 345,000 ounces of gold ($190 million at current prices).
 LKA also expects to increase the productive capacity of the Mine from its
 current 25,000 ounces per year to 60,000 ounces per year by 2009.  Additional
 exploration both above and below the Mine's 6th Level could significantly
 extend this production forecast.
 
     LKA's to Increase Interest in Production
     As the property owner, LKA currently receives a 10% "net smelter royalty"
 (this equates to almost 10% of the "gross" production proceeds) from the
 Golden Wonder.  LKA expects to increase its interest to 50% of the "net"
 production by financing the estimated $3.5 million cost of the new lower level
 drift.  Permitting for this project is currently underway.
     LKA's plans to expand Golden Wonder production are subject to a number of
 conditions including but not limited to, favorable financing
 terms/availability, permits, favorable geology, etc. There can be no assurance
 that LKA will be successful in this endeavor.
 
     Forward-looking statements in this release are made pursuant to the 'safe
 harbor' provisions of the Private Securities Litigation reform Act of 1995.
 Investors are cautioned that such forward-looking statements involve risks and
 uncertainties, including, but not limited to, continued acceptance of the
 company's products and services, competition, new products and technological
 changes, as well as any and all 'other risks' associated with business.
 
     Website: http://www.lkaintl.com
 
 

SOURCE  LKA International, Inc.