LAKE CITY, Colo., Sept. 21, 2016
LAKE CITY, Colo., Sept. 21, 2016 /PRNewswire/ -- LKA Gold Incorporated (OTCQB: LKAI) reports that Kinross has added a fourth drill site to the planned surface-drilling program on LKA claims located near the Company's Golden Wonder mine. LKA was also informed that Kinross delayed the drilling schedule, originally planned for early summer 2016, to comply with a requirement from the Bureau of Land Management ("BLM") for an Environmental Assessment ("EA") covering the proposed drilling area.
The EA was required due to the location of the four drill sites within a designated Canada Lynx habitat area. Kinross filed a permit application, including an EA and Plan of Operations for all four sites with the BLM in mid July.
Recently, the BLM and the U.S. Fish & Wildlife Service concluded their review of the Kinross filings and issued a "Finding of No Significant Impact." Accordingly, LKA expects drilling to commence within the next sixty days.
According to LKA President, Kye Abraham, "We're excited that Kinross has identified and plans to test an additional, fourth site possessing surface characteristics very similar to those found at the original Golden Wonder discovery. This is additional evidence that multiple ore shoots exist on LKA claims. Discovery of another high-grade ore body at any one of these sites could be a mammoth event for LKA shareholders."
Concerning the delay in the drilling schedule, Abraham commented,
"The permitting process in this environmentally sensitive area is always complicated. We applaud the cooperative effort of the public and private sectors to protect the environment while still preserving our exploration rights and employment opportunities for the local community."
The views expressed in this press release are solely those of LKA management. More discussion on the LKA-Kinross exploration program and related subjects can be found in the "President's Email Updates" and "President's Archive" on the Company's website at: http://lkagold.com/Management_Team_-_LKA_Inter.html. Details of Golden Wonder commercial production and exploratory ore shipments can also be found on the Home Page of the Company's website at: www.lkagold.com
About LKA's 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 bonanza-grade ore body which yielded more than 141,000 ounces of gold from a single ore shoot measuring less than 10,000 cubic feet. From 1998, through the second quarter of 2006, the average grade of Golden Wonder production was 16.01 ozs. (454 grams) gold per ton. In July 2015, LKA and Kinross Gold USA signed and exploration and option agreement for the purpose of expanding LKA's search for additional high-grade ore bodies beyond the current workings. 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.
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, 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.
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SOURCE LKA Gold Incorporated