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LKA175 Final

LKA175 Final

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Published by Tom Allen

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Published by: Tom Allen on Dec 19, 2011
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12/19/2011

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Oz/Oz The RICHEST Gold Mine In North America. Colorado's Hidden Treasure.LKA International Inc. (OTCQB:LKAI)
 
 
Dear newest and potential members, TKO Stocks is proud to debut the launch of our newsletter.TKO Stocks is a website-based newsletter,
. We are focused on identifying hidden, many timesoverlooked opportunities! We believe there is always value right under our nose in the Small cap arena. We identify whatwe regard as hidden jewels and bring these ideas to our valued members! Sometimes we give coverage, other times we may just issue a Trading Alert to our members. Sign up, it's free! Remember, with stocks timing is everything!We, at TKO Stocks, believe small business, regardless of public / private, is the heart of what drives the democratic world. Itis the heart of most of the Americas! Every company and every dream, no matter how big/ small, started as a vision insomeone’s eye. It is this force that drives us at TKO Stocks to seek out and identify
only the finest, undervalued
 
opportunities to bring to our members.
 
 
Our members are composed of a very diverse vocation base. Everyday professionals, such as doctors, lawyers, teachers, professors, government workers, investment banking professionals /institutional traders at many Middle Market Tier B/D's.CEO's CFO's, Day/Value Traders, mom and pop investors, investor relations and research firms are some who subscribe toour newsletter, over many countries.At TKO Stocks, we would never profile a company we would not own ourselves. Case in point a true icon, in the miningindustry. GOLD GOLD GOLD!
LKA International Inc. (OTCQB: LKAI) May also find as (LKAI.PK)
 
According to a recent publication of the NIA (National Inflation Association), “Many gold investors are buying gold to protect themselves from hyperinflation, which could hit the U.S. as soon as next year. “We, at TKO Stocks, agree with NIA. We feel they are a very smart organization that speaks the truth about what is reallyoccurring in the world today! Gold is going much higher and
LKAI is well positioned, below you will find several factsand reasons why.(OTCQB:LKAI)
is a Small Cap Mining company with operations in Colorado,
doing very BIG THINGS
. Publicly tradedand FULLY REPORTING. LKA International has a very rare and overlooked gold project that puts them on the map, quiteliterally! The Golden Wonder Mine located within the historically famous Colorado Mineral Belt, near Lake City,
 
(Historically over 25 Million ounces of gold has been mined in this region), may quite possibly be the highest-grade gold producer in N. America. Below is map of the region and several more stellar reasons, to own LKA International Inc.(LKAI).
1.On Nov 2/ 2011, LKA very quietly signed an LOI with Premier Gold (TSX:PG). To expand theircurrent exploration program.
 
2.
Historically, the high-grade nature of Golden Wonder ore has allowed for "direct shipment" with nomilling or concentrating required….no cyanide or environmentally dangerous chemicals. Past oreshipment have been sold to Barrick, Teck, Yukon-Nevada Gold and now almost exclusively to Kinross's
(NYSE:KGC)
, Kettle River Operations in Republic, WA.
 
3.
 
From 1998 through the second quarter of 2006, the Golden Wonder mine produced over 133,701 ounces(82% of which came during the period of 2002-2006) of ore with an average grade of 16.01 ozs. (454grams) gold per ton.
That was 47 times the industry average. At a ridiculous cost of less than $80/Ozto produce, at the time.
Adjusted for inflation and current cost of production, this would roughly be$150/Oz today.
 
4.Many Small Cap mining companies, never lift a pick or a shovel!...Many times management paythemselves nice hefty salaries, they make wildly speculative conclusion about limited drilling results onvery questionable properties. Then spend a great portion of their investor's money on stock promotions.Why is this?...For a lot of small mining companies, many times, it is about getting to the next round of “Flow Through Financing”. A dilutive financing tool, with great tax breaks, for their Non-US Investors.While the vast majority of small cap miners never get to the actual mining stage. When some do, they canonly hope to achieve actual, profitable production (made possible only by the recent break-out in gold prices and the public clamor for gold stocks). With an established operating history, LKA is far beyondthese Barriers to Entry.
5.
Unlike A lot of these “Gold Companies” traded on the Over-the-Counter, and Canadian VentureExchanges. LKA is quietly working on extending the production zones of it’s previously producingGolden Wonder mine. There is
No fancy “Flow Through Financing” or perpetual dilution occurring
 
here
. LKA is
generating real revenues, from existing gold ore sales
 
!
 
...Management does
NOT
take
 
huge salaries or bonuses. Nor does management
 
devote the majority of the Company’s resources toexpensive promotional campaigns...Management is doing all the right things.Almost all company revenues are plowed back into exploration and mine development..
 
6.For years (1998-2006) LKA‘s Golden Wonder mine was one of only two commercial gold producers inColorado. The Company has all of the requisite mining, environmental permits and infrastructure in place.Its properties and equipment are fully paid for and exploration operations are underway.7.Due to the nature of its arrangement with the previous mine operators (a production lease), the GoldenWonder’s established reserves were mined (133,000 ounces) and no significant exploration was ever conducted to extend the mine's reserve's. In fact, no exploration has ever been conducted on this high-grade telluride gold deposit beyond the relatively small production zone….until now. To date, the width,length and depth have yet to be determined and geologists believe there is serious potential for establishing a sizable high-grade ore deposit…possibly greater than 500,000 ounces. The currentexploration program may very well resolve this question.
"The Golden Wonder Mine mineralization could also be related to a bigger hydrothermal system potentially linked with the Eureka Graben fracture system which played an important role in thelocation of some other gold veins known to the W-SW of Lake City area (Sunnyside, Idarado)."  
Marie-France Bugnon, M.Sc. Manager, Exploration-Cambior, Inc. (July, 2006)
"Previous field geological studies and geochemical 
 
 sampling conducted by the author some distanceabove the Golden Wonder vein have
 
indicated telluride mineralization well beyond the presently-knownGolden Wonder vein
 
 structure." 
Delmer Brown, M.Sc. Consulting Geologist (June, 2008)
 
"There is no indication that the limits of high-grade gold in the vein zone have been reached either laterally on-strike or vertically down-dip." 
Clyde Smith, Ph.D. Consulting Geologist(September, 2010)
 
 
LKA actually made a profit on exploration last quarter!
 
Upon resuming direct control of operations in the latter half of 2006 LKA began taking steps to return the mine to a commercially productive status. Since
 
 
the first quarter of 2009, LKAshipped ten bulk ore samples containing more than 1,439 ounces of gold. Average ore grades for Q-3 2011 were 1.96 oz.(55.6 grams) gold per ton… over 13X industry averages! Net smelter receipts for Q-3 alone were $468,892. While this is far 
 
 below the mine’s previous ore grade and production of 4,500 ounces per quarter ($7.6 million in today’s prices) it still
 
offsets a majority of LKA exploration expenses.. Investors should bear in mind that exploration ore sales are NOT
 
considered “Commercial Production” and there remains more to be done to establish a reserve base...(Not a big concern tous...when/ if they get production status, or even begin announcing significant discoveries and reserves from the exploration program, our members will already be well positioned!).
One more consideration, based on their industry affiliations

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