GIG HARBOR, Wash., Jan. 11, 2012 /PRNewswire/ --LKA International, Inc. (OTCQB: LKAI) announced today that it recently signed a Letter of Intent to transfer ownership of the historic Ute-Ulay town & mill sites to Hinsdale County, Colorado. The properties are located on the Company's Ute-Ulay mining claims just off Engineer Pass approximately four miles west of the town of Lake City, CO.
The Agreement, a non-binding statement of intent, calls for LKA's donation of the land, historic buildings, and structures that comprise the original Ute-Ulay mining camp to the County for preservation and public display purposes.
The initial phase of the donation will involve a four-acre parcel of land located within LKA's 285-acre, historic Ute-Ulay Mine complex on Henson Creek and referred to as the Ute-Ulay "Townsite." The site includes the mine's original boarding house, two log cabins, various storage buildings, mine headframe, and an original redwood water tank. The second phase of the donation, expected later this year, will consist of the land, buildings and structures known as the Ute "Millsite" and includes the original blacksmith shop, assay lab, powerhouse and mill buildings. Some of these structures date back to the late 1800s when 250-300 miners worked the rich silver veins of Ute and Ulay mines, the first significant silver discovery in the Lake City mining district. The mines and mill were the primary catalyst for the establishment of Lake City, the seat of Hinsdale County, and home to most of the miners who worked the mines intermittently from 1874-1940.
The intent of LKA's donation is to enable Hinsdale County to restore and preserve one of the only remaining mining camps left in Colorado. The property transfer and restoration process is becoming a reality through the on-going cooperative efforts of certain key people within state, county, and federal agencies, notably the Hinsdale County Commissioners, Colorado Department of Public Health & Environment, Division of Reclamation Mining & Safety, Bureau of Land Management, and the EPA. Additionally, the non-profit organizations, Colorado Art Ranch and Lake City Dirt, continue to play an important role in bringing together these diverse public and private groups to achieve this important objective.
LKA is proud to be involved in this unique project/effort to preserve this iconic symbol of the area's rich mining heritage for the residents of Hinsdale County and the State of Colorado.
From 1998 through the second quarter of 2006, LKA's Golden Wonder mine (located near Lake City, CO but not connected with the Ute-Ulay) produced over 133,701 ounces of gold from ore with an average grade of 16.01 oz. per ton making it one the richest gold mines in North America. Upon resuming operations (exploration) in the first quarter of 2009, LKA has shipped twelve bulk ore samples containing more than 1,700 ounces of gold, which has offset most of LKA's exploration costs to date. Historically, the high-grade nature of Golden Wonder ore has allowed for "direct shipment" with no milling or concentrating required. The major purchasers of Golden Wonder ore have been Barrick, Teck, and Kinross. LKA's current exploration is focused on re-establishing reserves and returning the mine to commercial production. A commercial ore body has yet to be established and there can be no guarantee that LKA will be successful in its exploration efforts.
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.