GIG HARBOR, Wash.--(BUSINESS WIRE)--LKA International, Inc. (OTCQB:LKAI) intends to conduct an underground drilling program to test the continuity of the recently confirmed gold bearing structure located between the LKA Winze and the North Raise at the Company’s Golden Wonder mine located near Lake City, CO. The drilling program is an important component of a comprehensive exploration program designed to access the size and scope of this high-grade gold telluride deposit.
Nineteen vein samples (over a vertical distance of 110’) from the previously mined portion of the LKA Winze area averaged 10.46 oz (296.5 grams) gold per ton. (For further detail see LKA press release dated May 3, 2011). Underground core drilling will target the extension of the vein(s) from the winze area to the newly established North Raise. Over forty vein samples have been taken from the North Raise area with average assay results of 9.3 oz (263.6 grams) gold per ton. Vein widths/grades are known to be highly variable in this area of the mine. The objective of the drilling program is to assess the potential for a commercial ore body by determining average vein widths, grades and ground conditions in this zone. Initial results are expected in mid to late July.
Limited ore production from exploration activities has resulted in eight consecutive ore shipments since LKA initiated its current exploration program. These ore shipments are a byproduct of the exploratory mining program designed to re-establish commercial ore reserves at the Golden Wonder mine. To date, a total of 769 tons of ore has been shipped and sold to Teck, Kinross and Yukon-Nevada Gold. The grade of these shipments has ranged from .38 ozs. (10.77 grams) gold per ton to 4.05 ozs. (114.81 grams) gold per ton with an average grade of 1.42 oz (40.25 grams) gold per ton. A ninth shipment of approximately 100 tons was made earlier this month to the Kinross milling facility in Republic, WA. The grade of this shipment is expected to exceed 1.2 oz (34 grams) gold per ton. Ore sales continue to offset a substantial portion of LKA exploration expenses to date.
About the Golden Wonder Mine
From 1998 through the second quarter of 2006, the mine produced over 133,701 ounces of gold from ore with an average grade of 16.01 oz gold per ton. Historically, the high-grade nature of Golden Wonder ore has allowed for “direct shipment” of crushed ore with no milling or concentrating required. LKA continues to seek a compatible joint venture partner, business combination or favorable financing terms to carry out a larger-scale examination of this high-grade gold deposit.
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.