LKA Gold has received regulatory approval to start surface drilling to test targets previously located by Kinross geologists at Golden Wonder mine located near Lake City, Colorado.
These targets (potential high-grade ore zones) are in close proximity to existing underground workings.
Project geologist Rauno Perttu said: “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.
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.
Source: Company Press Release