President's Email Archive
November, 2016 - "The Greatest Treasure Hunt in the West?" Perhaps.

April, 2016
- Why a 150,000 oz Golden Wonder discovery beats anyone’s else’s 1.5 million ounce deposit.

October, 2015
- Why LKA Should Be A Part of Every Gold Portfolio

August, 2015
 - The LKA-Kinross Deal - Golden Wonder Exploration Shifts Into Higher Gear

February, 2015 - What Happens If We "Hit It"

October, 2014
 - Decoding Our High Grade Telluride Deposit

March, 2014
 - Size vs. Grade - Grade Wins Every Time...Nope. But It Should

February, 2014
 - Hunting for Elephants

October, 2013 - Searching For The Next Big Ore Chute(s)

August, 2013 - Ute Ulay Reclamation
 Kye Abraham
 President & Chairman
      
                                   "The Greatest Treasure Hunt in the West?" Perhaps.
                

November, 2016

As we've discussed in recent press releases, th
rough extensive surface work on LKA mining claims, Kinross geologists identified multiple, potential ore zones...actually six of them..not just the four sites slated for drilling this year and early next. Another gold discovery at any one of these locations would confirm our belief that the same geologic conditions that formed our first bonanza-grade ore shoot spawned several others...the tendency for these types of deposits. As I've discussed in previous updates, multiple ore bodies possessing anywhere near the size and grades of our first discovery would be a literal bonanza for LKA shareholders. Of course it's going to take a considerable number of drill holes before a final assessment is made but we'll start getting glimpses almost immediately.
          
                                                                                   
For right now I'm focused on, and you should be too, the close proximity of these potential new ore zones to our existing infrastructure and the fact that they are all situated right on trend...just where we would expect to find them. The selection of the first four drill sites was influenced by permitting considerations (ease and speed) and their close-in locations....very near existing workings. You'll get a better "visual" on all of this by clicking on these two images.
                                                                                                                                                                                                                                                                                                                                                                         

                                                                                                                 Potential Ore Bodies                   Kinross Drill Sites                                                  

For more commentary on this subject you should read my previous updates entitled "Why LKA Should Be a Part of Every Gold Portfolio" and "Why a 150,000 oz Golden Wonder discovery beats anyone’s else’s 1.5 million ounce deposit."

As always, you're welcome to contact me directly with any questions or comments: info@lkagold.com


**To read these and all previous President's Email Updates simply click on the "Archive" button below**

Mr. Abraham's views and opinions may not reflect those of Kinross, regulatory authorities, or other gold industry members. His comments contain no material non-public information. This message is intended to provide investors and shareholders with management's views and opinions of current operations, objectives, and industry conditions and may contain certain forward-looking statements. For more complete assessment of project and investor risk readers are encouraged to read the Company's most recent public filings with the Securities & Exchange Commission. Mr. Abraham's statements, 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.

 Kye Abraham
 President & Chairman
      

            Why a 150,000 oz Golden Wonder discovery beats anyone's else's 1.5 million ounce deposit.

April, 2016

I get asked all the time why I’m so enthused about the prospects of finding another high-grade ore shoot of a mere 150,000 ounces, like our first one, vs. a more industry-typical discovery of 1.5 million ounces. Quite simply, it’s all about the profit margin and leverage for LKA shareholders. Here’s how it shakes out;

                On average, it takes over 8 years and $60 million to build a mine containing 1.5+ million ounces of gold. Conservatively, a company would have to issue at least 90+ million shares along the way and borrow tens of millions to make it happen. At that point, shareholder leverage isn’t all that great. One of the world’s biggest producers, Barrick Gold, reported 2015 ore grades of .06 ounces (1.88 grams) per ton for all of its projects in the Americas.  Average production cost was $831 per ounce and net earnings for ALL projects was $.30 per share resulting in last year’s-end share price of $7.38. That’s 24.6 X earnings. A company lacking Barrick’s stature with similar earnings would likely receive a significantly lower price-to-earning ratio of say 15 X net earnings resulting in a $4.50 share price. And, none of this takes into account the risks associated with billions in debt to bring and keep these projects on-line. 

                By contrast, the first Golden Wonder ore shoot produced over 141,000 ounces at an average ore grade of 11.63 oz (361.7 grams) per ton...the highest ore grades we know of in the Americas. Production costs at the time were less than $90 per ounce. Assuming we find another ore shoot of similar size and grade our cost of production would likely be $150-$180 per once and generate earnings in the range of $.48-$.50 per share. Even accounting for our minority share in a joint venture with Kinross, assigned the same reduced P/E ratio of 15 X earnings, LKA stock could arguably be worth something north of $7.20 per share…and possibly much more if multiple ore shoots are found…or even anticipated. With Kinross as our partner, financing shouldn’t be much of a problem and would not likely exceed $10 million since permits and infrastructure are already in place. 

                Admittedly, there’s a lot of estimating and projecting baked into my theoretical LKA valuation since we haven’t yet identified a commercial ore body. However, the 3 new surface anomalies recently identified by Kinross geologists (potential ore shoots?) could be a game changer. These new targets are located right on the existing trend of the known vein system and will be drilled in the next few months.

                Kinda makes the current LKA share price of $.35 look cheap doesn’t it?  We’ll know soon.

                   As always, you're welcome to contact me directly with any questions or comments: info@lkagold.com

Previous Email Updates:

October, 2015 - Why LKA Should Be A Part of Every Gold Portfolio
August, 2015 - The LKA-Kinross Deal - Golden Wonder Exploration Shifts Into Higher Gear


                                                **To read these and all previous President's Email Updates simply click on the 



As always, you're 
welcome
 to contact me directly with any questions or comments: info@lkagold.com

**To read previous President's Email Updates simply click on the "Archive" button below**

Mr. Abraham's views and opinions may not reflect those of Kinross, regulatory authorities, or other gold industry members. His comments contain no material non-public information. This message is intended to provide investors and shareholders with management's views and opinions of current operations, objectives, and industry conditions and may contain certain forward-looking statements. For more complete assessment of project and investor risk readers are encouraged to read the Company's most recent public filings with the Securities & Exchange Commission. Mr. Abraham's statements, 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.

 Kye Abraham
 President & Chairman
      

                         Why LKA Should Be A Part of Every Gold Portfolio


October, 2015

Here are my reasons why everyone's gold portfolio should hold a position in LKA Gold shares....even a modest one.

Project fundamentals:
 There are very few companies - actually I don't know of ANY - engaged in gold exploration with a proven history of highly profitable gold production, a proven management team, and a property that has delivered the highest grades of gold ore in the Americas and still possesses open-ended exploration potential. LKA's Golden Wonder mine has already yielded more than 141,000 ounces ($162 million at today's prices) with a weighted average ore grade of 11.63 ounces of gold per ton. AND, over 7,800 of those ounces ($8.9 million) were extracted during exploration. AND, many experts believe this could be just the beginning, as these types of deposits tend to contain multiple high-grade ore shoots. We've only discovered and mined one thus far....on less than 5% of the property covered by our claims. 

I won't go into our production history here. You can find that in previous press releases and several places on this site. What gold stock investors really need to know is that if/when we discover another ore shoot like the last one, the market cap of this company could easily increase thirty-fold
very quickly. If we discover multiple/bigger/richer ore zones even a 30X number could be just the beginning. Now, with the financial and technical resources of our new exploration partner, Kinross Gold USA, we've got a serious shot at finding "the source" - the feeder system of this rich deposit. 

Explosive capital structure:
 To properly evaluate the potential of LKA shares, you need to know that there are fewer than 20 million shares issued and outstanding. Of those, nearly 12 million shares are held by the Abraham and Koski families or their affiliates. This means that upon announcement of another discovery, new investors will be bidding for the remaining 8 million shares in "the float"....with the majority of this held by long-term investors who understand the potential. 

Conclusion:
 There's still work to be done and risk a plenty. This is not a stock for the widows and orphans....or one on which you bet your retirement. But, LKA has all the ingredients speculators look for, or should look for, in a junior gold company. There's Big, or in this case, a Very Rich production history, Proven management, Big industry partners, and Big Upside. If we "hit it," you're going to be thankful you bought even a small position when it was still cheap.

As always, you're 
welcome
 to contact me directly with any questions or comments: info@lkagold.com

**To read previous President's Email Updates simply click on the "Archive" button below**

Mr. Abraham's views and opinions may not reflect those of Kinross, regulatory authorities, or other gold industry members. His comments contain no material non-public information. This message is intended to provide investors and shareholders with management's views and opinions of current operations, objectives, and industry conditions and may contain certain forward-looking statements. For more complete assessment of project and investor risk readers are encouraged to read the Company's most recent public filings with the Securities & Exchange Commission. Mr. Abraham's statements, 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.

 Kye Abraham
 President & Chairman
      

           The LKA-Kinross Deal - Golden Wonder Exploration Shifts Into Higher Gear 

August 3, 2015


With the financial muscle and technical expertise of the world's 7th largest gold producer joining our hunt for the next big "find" at the Golden Wonder, our exploration program has shifted into a whole new gear. 

Until now, we've focused underground drilling and exploratory mining on a limited target zone. I
n the new exploration and JV option arrangement with Kinross, the objective is to focus Kinross efforts and resources on the largely unexplored portion of the property that comprises about 80% of our property while we continue exploration in the "carve-out" area...an expanded zone around our current workings. If THEY discover another high-grade ore shoot, or multiple shoots, measuring 50,000 ounces or more, WE'LL have the opportunity to evaluate the discovery and, if WE like it, reimburse Kinross 40.25% of their exploration expenses in exchange for a 35% joint venture interest. If Kinross turns up less than 50,000 ounces over the next 5 years, THEY walk and WE keep it to ourselves. In the meantime, if LKA makes any discoveries within the carve-out area during the same time period, WE keep it all. 

From the LKA perspective, this is exactly the way to get a good look at the wider area comprising the Uncompahgre Caldera without spending millions of our own money and diluting our shareholders....with one of the best and biggest gold producers in the world.

An independent report with a slightly different perspective on this deal, and project detail, was recently prepared by CBS MarketWatch co-founder and editor-in-chief, Thom Calandra. Thom is the editor of The Calandra Report and reports on mining projects world wide. You can read Thom's report at the following link:    The Calandra Report - Rocky Mountain High-Grade: LKA Gold


As always, you're 
welcome
 to contact me directly with any questions or comments: info@lkagold.com

To read previous President's Email Updates simply click on the "Archive" button below

Mr. Abraham's views and opinions may not reflect those of Kinross, regulatory authorities, or other gold industry members. His comments contain no material non-public information. This message is intended to provide investors and shareholders with management's views and opinions of current operations, objectives, and industry conditions and may contain certain forward-looking statements. For more complete assessment of project and investor risk readers are encouraged to read the Company's most recent public filings with the Securities & Exchange Commission. Mr. Abraham's statements, 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.

 Kye Abraham
 President & Chairman
        What Happens If We "Hit It"





February 7, 2015

I often get asked by potential investors and shareholders; "Abraham, what happens if you're right and there are multiple high-grade ore shoots on this property and we actually hit another one? What will be the impact on my investment?  

Without getting into the most obvious risks like, maybe we're just plain wrong and despite the high grades we're encountering in our exploration program, the next ore shoot, IF it exists, may be too far away to access from current workings, too small, lower grade, too deep, etc., etc. I'll have our project geologist comment on some of these issues in upcoming press releases and reports as we complete the current drilling program. But, for purposes of addressing the opening question, my response goes like this:

Let's say we encounter another ore shoot like the first one that produced 133,000 ounces at an average ore grade of 16.01 oz. of gold per ton. (More than a few geologists believe that in gold deposits like this one, it is more likely than not, several ore shoots exist). Let's further speculate, that the grade is only one-half that good, and production costs have more than doubled. Let's also assume that the gold price remains constant at $1,200 until we extract the entire ore body. Under these circumstances, arguably, LKA could earn, after taxes, depreciation, depletion allowance, the usual stuff, about $.40 per share. IF, the market would value us at at least 10x earnings, LKA's market cap would be somewhere north of $75 million...around $4.00 per share. We closed yesterday at $.54 per share with a total market cap of $10.3 million. My point is, you can slice and dice these numbers anyway you want and still come to the conclusion that LKA may be significantly undervalued. 

Since I rolled out the negative possibilities in the second paragraph, its reasonable to ask ourselves, WHAT IF some positive things occur, like, multiple/bigger ore shoot discoveries? Higher ore grades? What about monetary inflation, or currency collapses, or global gold supply concerns? Any one of these events, or combination of events, could be a catalyst for higher LKA share prices....IF WE "HIT IT."

As always, you're welcome to contact me directly with any questions or comments: info@lkagold.com

Mr. Abraham's comments contain no material non-public information. This message is intended to provide investors and shareholders with management's views and opinions of current operations, objectives, and industry conditions and may contain certain forward-looking statements. For more complete assessment of project and investor risk readers are encouraged to read the Company's most recent public filings with the Securities & Exchange Commission. Mr. Abraham's statements, 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.
 Kye Abraham
 President & Chairman
 

          Decoding Our High Grade Telluride Deposit


October 14, 2014

We recently announced that the engineers at Maptekcompleted the first-ever, high resolution mapping of the underground workings of our Golden Wonder mine. Here are the reasons why it's important and we're making such a big deal of it:

First, it gives us a detailed view, in 3-D, of the original ore shoot and all of the high-grade structures we've extracted in the immediate area. While we've been able to see the mined areas before, through conventional maps and older 3-D models, we've never been able to look at the actual bending, pinching and swelling of the vein structures and how they line up precisely between the different levels of the mine. The resolution is so good in fact, that if you pinned a license plate to the rib (wall) of any of the mapped areas, you would be able to read the numbers and state of origin.


Secondly, for the first time we can see the likely high-grade targets in the immediate vicinity of our current mining operations. Ore grades in the Golden Wonder tend to rise with vein width and diminish when veins pinch. If we can see exactly where veins have widened, we've got a much better shot at predicting the location of the next high-grade zone. 

Thirdly, and this is the most exciting aspect of high-rez mapping, we get a glimpse of where and how the gold-enriched solutions flowed though the highly fractured volcanic vent system to form our first discovery (an ore shoot that produced over 133,000 ounces with an average grade of 16.01 ounces of gold per ton) and how the approach to the second, third, or fourth ore shoots may/should look. Remember, in these types of deposits, it is more likely than not that multiple ore shoots exist....just as there are multiple vents in a volcano.

Our next step will be an underground drilling program to shoot at those enticing new targets revealed by the high-rez mapping. We've already mobilized the drilling crew. Should have initial results in a couple weeks. 

  As always, you're welcome to contact me directly with any questions or comments: info@lkagold.com

Mr. Abraham's comments contain no material non-public information. This message is intended to provide investors and shareholders with management's views and opinions of current operations, objectives, and industry conditions and may contain certain forward-looking statements. For more complete assessment of project and investor risk readers are encouraged to read the Company's most recent public filings with the Securities & Exchange Commission. Statements and opinions in this message are made pursuant to the "safe harbor'" provisions of the Private Securities Litigation Reform Act of 1995. 
Kye Abraham
President & Chairman

                      Searching For The Next Big Ore Chute(s)

October 2, 2013

One of the things that makes the Golden Wonder mine an exciting exploration target is the nature of the gold deposit and how little of it has been explored. Right now, our crews are literally chewing their way through the fractured vent system of a collapsed volcano...a caldera. Hot water, under pressure, carrying gold solutions was forced up from the magma chamber into the fractures of the volcanic vent system...an area known as the "boiling zone." Wherever these solution were trapped or slowed long enough to cool, the gold would precipitate out of solution and be deposited within the fractures "veins" and vents "ore chutes." Typically, when we encountered wider areas where veins converge, gold values rise dramatically....often into double digits. So far, we've looked at less than ten percent of the caldera.

The last sizable ore chute, discovered by LKA crews in the mid-1980s but not developed and mined until 2002, yielded over 133,000 ounces of gold from an area of less than 10,000 square feet. Average ore grades exceeded sixteen ounces of gold per ton. So, when we find one of these ore chutes it's literally a BIG "pay day." Louis Gignac, the former CEO of the big Canadian gold producer Cambior, once told me, "If Cambior got the Golden Wonder back into production it would fund all of our world-wide exploration projects."

Cambior geologists understood that in caldera gold deposits of this type, it is more likely than not that multiple ore chutes exist within the vein system....vents in the volcano. With these types of off-the-charts gold grades, it doesn't take a wide area (aka big environmental footprint) to contain multiple ore chutes with potential for one-half to one million ounces. Similar telluride, epithermal deposits like the Emperor mine in Fiji and the Porgera in Papouasie New-Guinea produced over 10 million ounces each. With our high grades and low cost structure we only need a small fraction of that to be wildly successful.

As always, you're welcome to contact me directly with any questions or comments: info@lkagold.com

Mr. Abraham's comments contain no material non-public information. This message is intended to provide investors and shareholders with management's views and opinions of current operations, objectives, and industry conditions and may contain certain forward-looking statements. For more complete assessment of project and investor risk readers are encouraged to read the Company's most recent public filings with the Securities & Exchange Commission. Statements and opinions in this message are made pursuant to the "safe harbor'" provisions of the Private Securities Litigation Reform Act of 1995.




Kye Abraham
President & Chairman



August 8, 2013

To My Fellow Shareholders & Friends;

As most of you know, LKA recently completed the donation of our Ute Ulay mill and historic townsite to Hinsdale County. Almost immediately thereafter, the County initiated a property cleanup (remediation) as the first step in its historical restoration of this unique property. The Ute site is one of the most famous, intact mining camps left in Colorado and the very reason that Lake City was founded in 1875 .

We're very proud to be a part of this unique private-public partnership to restore one of Colorado's most famous historical sites. Here's the link to our web page containing the latest YouTube video of the Ute mill site restoration...and much more: http://lkagold.com/Ute_Ulay.html

You're welcome to contact me directly with any questions or comments: info@lkagold.com

Mr. Abraham's comments contain no material non-public information. This message is intended to provide investors and shareholders with management's views and opinions of current operations, objectives, and industry conditions and may contain certain forward-looking statements. For more complete assessment of project and investor risk readers are encouraged to read the Company's most recent public filings with the Securities & Exchange Commission. Statements and opinions in this message are made pursuant to the "safe harbor'" provisions of the Private Securities Litigation Reform Act of 1995.



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