GIG HARBOR, Wash., Sept. 25, 2017 /PRNewswire/ -- LKA Gold Incorporated (OTCQB: LKAI) reports that Kinross has informed the Company of its decision to terminate its exploration program at LKA's Golden Wonder mine located near Lake City, CO.
Considering the encouraging results from both the surface evaluation program conducted in 2015 and the subsequent drilling program, LKA management was surprised by the Kinross decision.
Closely following the Kinross surface evaluation and drilling data from the inception of the program, LKA project geologist, Rauno Perttu observed:
"After reviewing the Kinross drilling results I'm a bit puzzled as to why they would discontinue the program after only five drill holes, all of which penetrated the Golden Wonder structure and encountered gold and telluride shows. Drill cores from the third and fourth holes contained many of the elements encountered in the Golden Wonder's high-grade zones. Expecting to hit a relatively small target like an ore chute with five widely dispersed surface drill holes seems a bit unrealistic to me. This program definitely needs to be followed up on and completed. Two of the holes may have been near new ore chutes, and the strongest new targets remain untested."
Since Kinross has consistently refused to comment on this exploration project, even when asked for off-the-record opinions by LKA management, the decision to terminate the project this early in the process remains a matter of speculation.
According to LKA President, Kye Abraham, "Historically, widely-dispersed surface drilling at the Golden Wonder has been notoriously inconclusive and failed to discover the first bonanza-grade ore shoot. It's been tried before. If we had known that Kinross expected to hit an ore shoot, or high-grade zone, with its first five holes from the surface, we would have been reluctant to allow them to start. This is damaging to our project and very disappointing."
LKA is currently pursing options with other interested parties.
About the Kinross Drilling Program at Golden Wonder Mine
As previously announced, the Kinross drilling program, initiated in late 2016, was designed to test up to six areas (targets) identified by Kinross geologists during a detailed geochemistry evaluation of the surface area adjacent to, and well beyond, the original Golden Wonder discovery. See maps of permitted drill sites at: http://lkagold.com/golden-wonder-mine. Each of the drill targets possess surface geochemistry similar to the original high-grade ore shoot that, during LKA's ownership, yielded over 141,000 ounces from an area measuring less than 10,000 square feet. Ore grades from commercial production (2000-2006) were 16.01 oz gold per ton. "Life of Mine" grades, (including exploratory mining) are 11.63 oz. (362 grams) gold per ton. Detailed Golden Wonder production records and geologists comments can be found on LKA's website at: http://lkagold.com/golden-wonder-mine.
Safe Harbor Statement
Any views or opinions expressed in this press release are exclusively those of LKA management and do not represent Kinross' assessments or conclusions. LKA's plans to resume 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. 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.
Riverview Capital Enterprises
Jonathan Barkman, President
SOURCE LKA Gold Incorporated