GIG HARBOR, Wash., Aug. 6, 2018 /PRNewswire/ -- LKA Gold Incorporated (OTCQB:LKAI) reports that it has received regulatory approval to commence surface drilling to test targets previously located by Kinross geologists. These targets (potential high-grade ore zones) are in close proximity to existing underground workings.
According to Project Geologist, Rauno Perttu, "Two of these targets, the central part of the Horse Creek Fault and the Moose Lake Fault, lie to the north of the current mine and of Kinross's 2017 drilling. Neither of these zones were tested. Both of these are targets that I would have prioritized. A third, and very promising location, at the intersection of the Horse Creek Fault with the Golden Wonder structure, was tested with a single drill hole that intersected gold and silver tellurides consistent with high-grade Golden Wonder mineralization."
Drilling is expected to commence as quickly as scheduling and project logistics are completed.
About LKA and Kinross 2016-2017 exploration program at the Golden Wonder Mine
As previously announced, the recently terminated Kinross drilling program, in LKA's opinion, only superficially and inconclusively tested four of the six original drill targets identified by Kinross geologists during a 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/ ). All six of the original 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. Upon resuming exploratory mining operations in the first quarter of 2009, LKA shipped thirty-one bulk samples of crushed vein material containing more than 4,900 ounces of gold with a net value, after processing, of over $5.1 million. These shipments were made to Kinross, Klondex Mines, Freeport McMoRan, and TCB International. Gold sales covered a substantial portion of LKA's exploration expenses to date.
Details and discussion of the LKA and Kinross 2016-2017 exploration program (including previous commercial production) can be found on the LKA website at: http://lkagold.com or in the "President's Email Updates" at: http://lkagold.com/presidents-message/
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. Investment in LKA must be considered highly speculative. 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.
LKA Gold Incorporated
Kye Abraham, President
Riverview Capital Enterprises
Jonathan Barkman, President
SOURCE LKA Gold Incorporated