LKA Discusses Second Quarter Gold Shipments & Discovery of a New High-Grade Zone

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Aug 27, 2013, 04:42 ET

GIG HARBOR, Wash., Aug. 27, 2013 /PRNewswire/ -- LKA Gold Incorporated (OTCQB: LKAI) announced that it's second quarter, 2013 ore shipments (exploratory) were below normal due to the substantial amount of vein material mined but not shipped before the end of the quarter. Over 200 tons of such material was crushed, bagged and remained on LKA's property at the end of the quarter. Average grades of this unshipped material were approximately .74 ounces (21 grams) gold per ton.

New High-Grade Zone
A key factor in deciding to delay some of the second quarter shipments came as LKA crews began encountering much higher grades of gold enrichment in a newly discovered vein near the North Raise area of the mine. This vein was located below and adjacent to a high-grade structure encountered in 2010. Crushed ore assays from the first 15 tons extracted from this newly discovered zone averaged 3.68 ounces (104 grams) gold per ton. Vein assays ran substantially higher, as expected, but are not usually an accurate measure of ore grades over a mining width…which contains variable grades of vein material plus waste rock.

#	Sample	Au	Ag
1	C20 147-151#1	5.13	3.03
2	C20 147-151#2	3.46	1.54
1	C20 152-156#1	3.34	1.30
2	C20 152-156#2	2.77	1.63

		Troy oz/ton	Troy oz/ton
		0.002	0.100
		FA-Ag/Au-01	FA-Ag/Au-01

According to LKA President Kye Abraham, "We're very encouraged by the higher ore grades we're encountering in this new zone. Higher levels of enrichment are one of the indicators we've historically encountered as we approach one of the classic Golden Wonder high-grade ore chutes. But, the jury's still out until we get a more comprehensive look."

During the current quarter, over 100 tons of higher grade ore were shipped to Freeport McMoRan's Globe-Miami smelter in Arizona. All Q-2, 2013 shipments were made to Kinross' Kettle River milling facility in Republic, WA. Gold ore sales (bulk sampling from exploration) are expected to continue to exceed the cost of LKA's exploration program during the current quarter.

About LKA 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 133,000 ounces of gold from a single ore chute measuring less than 10,000 square feet. From 1998 through the second quarter of 2006, the Golden Wonder mine produced over 133,701 ounces from ore with an average grade of 16.01 ozs. (454 grams) gold per ton. Upon resuming exploratory operations in the first quarter of 2009, LKA has shipped twenty-three bulk ore samples containing more than 3,417 ounces with a net value of $3.8 million. The exceptionally high-grades of Golden Wonder ore has allowed for "direct shipment" with no milling or concentrating required. 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.

SOURCE LKA Gold Incorporated