LKA Records Second Consecutive Profitable Year For Golden Wonder Mine Operations 2012 project profits rose 147 percent
GIG HARBOR, Wash., April 10, 2013 /PRNewswire/ -- LKA International, Inc. (OTCQB:LKAID) (temporary) announced today that for the second consecutive year its exploration program at the Company's Golden Wonder mine was profitable. Gold ore sales exceeded $1.72 million in 2012, which more than doubled 2011 ore sales of $851,561. Project profits were $542,532 in 2012 vs. 219,625 in 2011. As previously announced, the average grade of ore sold was 1.55 ounces (43.9 grams) gold per ton in 2012 vs. an average grade of 1.44 ounces (40.8 grams) in 2011.
Chairman Kye Abraham commented, "We're extremely pleased with our exploration progress at the Golden Wonder. Our operator, Coal Creek Construction, has done a remarkable job of advancing our knowledge of the mine and the deposit while controlling project costs. They're an invaluable component of the program's success."
For the Company as a whole, LKA recorded a net loss of $2.71 million, which was mostly attributed to one-time charges of $2.34 million associated with debt restructuring. More detailed information about the Company's operations and financial condition may be found in the Company's 10-K filed as filed with the SEC on April 1, 2013 at: www.sec.gov or under the "Investors" tab "Public Filings" on the Company's website: www.lkagold.com .
About the Golden Wonder Exploration Program
Gold enriched vein material is extracted as part of an exploration program designed to determine the width, depth, and lateral extent of the Golden Wonder deposit. Following the Golden Wonder's highly enriched vein system employing exploratory drilling and mining strategies has proven the most effective and cost efficient means of locating commercial ore bodies.
Since exploration commenced in 2009, LKA's has shipped bulk ore samples containing more than 2,942 ounces of gold resulting in net ore sales of $3.3 million. Average ore grades during this exploration program have exceeded 1.52 ounces (43 grams) per ton. Investors are cautioned that additional exploration is required and 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 International, Inc.'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 International, Inc. 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.
Jonathan Barkman, President
SOURCE LKA International, Inc.