GIG HARBOR, Wash.--(BUSINESS WIRE)--LKA International, Inc. (OTCQB:LKAI) LKA continues to evaluate alternatives for financing expanded exploration plans at its Golden Wonder mine. Equity sales, convertible debt, credit lines and joint venture proposals are currently under consideration and additional offers are being sought.
The Exploration Program
As discussed in greater detail in a previous news release, LKA intends to deploy additional surface and underground mining personnel to expand its current exploration program. The Company believes that a comprehensive exploration program may produce sizeable project expansion opportunities at a relatively low cost.
As LKA’s consulting geologist, Delmer Brown noted, “….at the time of the author’s initial geological studies (Golden Wonder area) it became apparent that mineralization was widespread throughout a broad area above and beyond the recognized Golden Wonder vein structure.” [A copy of Brown’s report will be made available upon request.]
The Company estimates the cost of this expanded effort will be $2-3 million over the next three years depending upon results. A significant portion of this expense is expected to be offset by proceeds from on-going, exploratory ore production.
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.