LAKE CITY, Colo., July 13, 2015 /PRNewswire/ -- LKA Gold
Incorporated (OTCQB: LKAI) announces that it recently executed
an "Exploration Agreement & Option" (the "Agreement") with
Kinross Gold U.S.A., Inc. for the
purpose of expanding its Golden Wonder Mine exploration beyond
LKA's active workings.
The Agreement, amongst its other provisions, grants Kinross a five-year exclusive right to
explore, and if successful, develop any mineral resource(s)
containing 50,000 or more ounces of gold on LKA's properties above
and adjacent to the Golden Wonder Mine located near Lake City, Colorado. If such a resource, or
multiple resources, is discovered, LKA will have the option to
enter into a joint venture with Kinross for the purpose of developing such
resource(s) by reimbursing 40.25% of Kinross' exploration expenses in return for a
35% interest in the joint venture. If a joint venture is formed,
LKA's contribution will also include all of LKA's Golden Wonder properties.
During the five-year exploration period, Kinross will, but is not obligated to, conduct
exploration, at its own expense, while LKA will retain the
exclusive right to continue exploration and development of any
resources within a "Carve-Out Area" which is LKA's current area of
operation.
According to LKA President, Kye
Abraham, "This Agreement with Kinross enables us to get a look at, and
participate in, any gold discoveries made over a much larger area,
much sooner, than LKA's limited resources would otherwise allow."
Mr. Abraham added, "As one of the world's preeminent gold
producers, Kinross brings the
technical and financial muscle this project needs. We're encouraged
that Kinross recognizes the
potential of this unique property."
Interested parties are encouraged to read the complete text of
the Agreement which is attached to LKA's 8-K filed with the
Securities And Exchange Commission on July
13, 2015. More discussion on this 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
and exploratory gold shipments can be found on the Home Page of the
Company's website at: www.lkagold.com
About Kinross Gold U.S.A.
Kinross Gold U.S.A., Inc. is a wholly owned subsidiary of
Kinross Gold Corporation, a Canadian-based senior gold mining
company with mines and projects in the
United States, Brazil,
Chile, Ghana, Mauritania, and Russia. Kinross maintains listings on the Toronto
Stock Exchange (Toronto: K) and
the New York Stock Exchange (NYSE: KGC).
About LKA Gold exploration program at its Golden Wonder
Mine
Vein material is extracted as LKA 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 mine's first commercial ore body
which yielded more than 133,000 ounces of gold from a single ore
shoot measuring less than 10,000 square feet. From 1998, through
the second quarter of 2006, the average grade of Golden Wonder ore was 16.01 ozs. (454 grams)
gold per ton. LKA believes that additional such ore shoots may
exist on its mining claims. Upon resuming exploratory operations in
the first quarter of 2009, LKA has shipped to regional processors
and smelters 35 bulk ore samples containing more than 4,600 ounces
with a net value, after processing, of more than $5 million. Ore sales to date have funded the
majority of LKA Gold's exploration program. Investors are
cautioned that additional exploration is required and a
commercially viable ore reserve has yet to be established and,
there can be no assurance that this will occur.
Safe Harbor Statement
Projections, and opinions
expressed in this message are made pursuant to the "Safe Harbor'"
provisions of the Private Securities Litigation Reform Act of 1995
and the Bespeaks Caution Doctrine. 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 Gold'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 Gold 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.
Company Contact
LKA Gold Incorporated
Kye Abraham, President
(253) 514-6661
info@lkagold.com
http://lkagold.com
Investor Contact
Zachary Abraham
Abraham & Co., Inc.
abeco.z@abrahamco.com
http://abrahamco.com
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visit:http://www.prnewswire.com/news-releases/lka-gold-and-kinross-gold-usa-sign-exploration--option-agreement-300111926.html
SOURCE LKA Gold Incorporated
