Replies to post #2706 on Mining Company research board

[ChuckD-MSB]

I was involved in another Colorado gold project and was told that using an exploratory permit and just going after the high grade ore was a good strategy especially if you can follow a vein since the exploratory permits are much easier to obtain.

Not sure if that is the case with the Golden Wonder but made good sense for the project I was working with.

[1manband]

Yes, LKA is at the exploration stage. Technically, they are bulk sampling and their revenues are a result of the processing of the bulk sample material. But, I would not say the ore is so rich that it pays for exploration. It has a positive cash cost (only because it appears they may be segregating certain costs which are related to the exploration but not included in their "exploration costs" and they are not accruing certain costs which would be required if they were in production), but the Company is still in a significant loss position.

Looks like the current ore grades are 1/10th of the 16.1 oz/t they mined back in 2002-2006. Which means that although they are losing money, and yesterday announced they completed the private placement of 7.2 million restricted shares at 25 cents per share for more capital because they are not self sustaining. If they can deploy that new capital wisely and are successful in finding grades that approach the historic grades from earlier this century, they should do better, assuming they can find enough tonnage still left in the ground.