LAKE CITY, Colo., May 2, 2016 /PRNewswire/ -- LKA Gold Incorporated (OTCQB:LKAI) A surface drilling program planned for early summer, 2016, is expected to test three recently discovered surface anomalies (previously announced) identified by Kinross geologists in the third quarter of 2015.
According to a detailed report provided to LKA by Kinross Gold USA earlier this year, these anomalies ("drill targets") are situated at intersections of the main Golden Wonder vein structure and three highly mineralized oblique fault zones. Soil sampling data indicates that all three targets possess geochemistry strikingly similar to that found directly above the previously mined, bonanza-grade, ore shoot at the Golden Wonder. The closest target is located adjacent to the existing high-grade zone with the furthest located, on strike, over 1,000 meters away. All drill targets are situated within LKA's claim package.
According to LKA President, Kye Abraham, "We're anxious to get the drilling program underway. A high-grade gold discovery at any one of these three targets would confirm our belief that LKA's property is host to multiple ore shoots…possibly of the same bonanza ore grade encountered in the first one. We'll know more soon."
The views expressed in this press release are solely those of LKA management upon examination of the Kinross report. 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 also 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 141,000 ounces of gold from a single ore shoot measuring less than 10,000 cubic feet. From 1998, through the second quarter of 2006, the average grade of Golden Wonder production was 16.01 ozs. (454 grams) gold per ton. LKA believes that additional such ore shoots 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 more than 4,900 ounces of gold with a net value, after processing, of over $5.1 million. 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, government regulation, 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. Forward-looking statements in this release are made pursuant to the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995 and the Bespeaks Caution Doctrine.
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SOURCE LKA Gold Incorporated