Lka Gold Inc · OTC:LKAI
Lka Gold — Investor Presentation (September 2014)
29 slides from Lka Gold's investor presentation, September 2014
Slide 1: Gold Incorporated
GOLD INCORPORATED
Slide 2: Issuer Presentation September 2014
Issuer Presentation September 2014 This Issuer Presentation in intended to convey only summary information about the Company and its current operations. The information and projections contained herein are based on information available to management and believed to be reliable and accurate as of Se
Slide 3: Table of Contents
Table of Contents 4 Forward Looking Statements 15 Estimated Capital Expenditures 5 Opportunity Overview 16 Gold Production – Exploration Phase 6 Opportunity Overview (cont.) 17 Financial Summary 7 Capital Structure 18 Post Funding Plan 8 Primary Asset 19 Management & Advisors 9 Underground Workings
Slide 4: Forward Looking Statements
Forward Looking Statements This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, inclu
Slide 5: Opportunity Overview
Opportunity Overview Ø One of only two commercial gold producers in Colorado between 1998-2006. Over 140,039 oz gold mined ($182 million at current prices) Ø High-grade telluride type (epithermal) gold deposit with potential for multiple >500,000 oz. extensions. (See excerpts from geologists in Ap
Slide 6: Opportunity Overview (cont.)
Opportunity Overview (cont.) Opportunity Overview (Cont.) Ø Experienced & proven management and operations team. ~ Conducted initial mine exploration (1983–1985) and located original ore body. ~ Profitable exploration program designed to re-establish commercial production. ~ Experienced & profitabl
Slide 7: LKA Gold Overview & Capital Structure
LKA Gold Overview & Capital Structure Issuer Exchange & Symbol: OTCQB:LKAI Recent Share Price: $ .40 2011 Net Gold Shipments $ 851,561 2012 Net Gold Shipments $ 1.7 million 2013 Net Gold Shipments $ 821,956 Shares Outstanding: 18.8 million Warrants Issued: 542,000 ($1.80 avg.) Public Float: 4.4 Mill
Slide 8: Primary Asset-Golden Wonder Mine
Primary Asset-Golden Wonder Mine Ø Located Within Colorado Mineral Belt (Over 25 million ounces historic production) Ø One of America’s Richest Gold Deposits (Epithermal Telluride-type) Ø Commercial Gold Production 1998 – 2006 Ø Multiple en echelon Vein System ~ Average 1-3 feet in width ~ Multi
Slide 9: Golden Wonder Underground Workings
Golden Wonder Underground Workings Area of production prior to LKA Ownership Current 133,000 ounces Exploration since 1998 Target Area of Recent North Raise Area Production Are for future exploration
Slide 10: Nature of Golden Wonder Vein System
Nature of Golden Wonder Vein System Ø While following veins (exploratory mining) and cross-cutting the structure, a clear picture of the ore emplacement emerges. Ø Accelerating the exploration program will better delineate and predict ore bodies, providing a road-map to increase yields and operati
Slide 11: Commercial Production 1998 - 2006
Commercial Production 1998 - 2006 Ø 133,700 ounces from single ore shoot. ($180 million current prices) Ø Average 16.01 oz Au/ton (80 X industry average)
Slide 12: Production Cost Actual and Estimated
Production Cost Actual and Estimated LKA Production Cost Per Ounce (Au) For the Period 2004 – 2015 $2,250 $2,047 $2,015 $2,000 $1,750 $1,500 $1,229 $1,145 $1,172 $1,250 $1,000 $660 $750 $450 $500 $376 $77 $250 $57 $76 N/A N/A $- 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014-E 2015-E 2016-E
Slide 13: Early Exploration Results
Early Exploration Results Ø The company’s current exploration program is funded through the sale of vein material derived from extensions of previous production zones. Company’s exploratory mining (profitable) has yielded over 4,200 ounces since resumption of exploration in January of 2009. Ø Earl
Slide 14: Mine Exploration Plan
Mine Exploration Plan Ø Underground drilling and drifting (Phase I) ~ Add exploratory mine crews ~ Locate en echelon (parallel) vein systems ~ Increase exploratory gold sales ~ Complete 3-D model of underground workings Ø Surface mapping and geophysical surveys (Phase I) ~ Establish lateral (on st
Slide 15: Growth Plans & Capital Expenditures
Growth Plans & Capital Expenditures 2013 – 2016 Ø Expand current exploration program (Phase I & II) ~ Partially funded with gold sales from current exploration efforts ~ Add additional crews for surface and underground exploration ~ Complete 3-D mapping/modeling of Golden Wonder deposit and surroun
Slide 16: Actual & Estimated Gold Production – Exploration Phase
Actual & Estimated Gold Production – Exploration Phase 7,500 7,000 6,500 6,000 Gold Produced During Current 5,500 Explora5on Program 2009 – 2013 5,000 3,754 oz. ($5.1 million @ $1,350) 4,500 ounces 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2009 2010 2011 2012 2013 2014 2015 2016
Slide 17: LKA Financial Summary
LKA Financial Summary Exploratory Gold Shipments 2009 thru 2016 2009 2010 2011 2012 2013 2014* 2015* 2016* Actual Actual Actual Actual Actual Estimate Estimate Estimate Ore Production 88 559 454 861 732 950 1,406 1,875 DWT Ave Grade (oz/ton) 3.83 1.07 1.44 1.55 1.13 2.5 3.2 4 Total Ounces Au 337 599
Slide 18: Post-Funding Plan
Post-Funding Plan Ø Accelerate current exploration program Ø Commence investor awareness campaign Ø File registration statement for securities offered (as required) Ø Seek up-listing – We believe we would qualify for listing on a nationally recognized exchange (OTCQX or AMEX ) by Q-1 of 2015 Ø
Slide 19: LKA Management and Project Advisors
LKA Management and Project Advisors • Kye Abraham – Chairman and CEO Officer, Director, and Co-founder of LKA since formation in 1979 Officer and General Partner of several LKA partnerships involved in mining and oil & gas projects Acquired Golden Wonder mine in 1982 and supervised all facets of ear
Slide 20: Conclusion
Conclusion Ø Recent history of sizable high-grade gold production with strong future potential ~ Over 140,000 ounces produced to date (Current $$ Value - $182 Million) ~ 8-year production grades of 16.01 ounces (454 grams) per ton ~ Historical commercial production cost of <$80 per ounce Ø LKA is
Slide 21: Legal Counsel & Auditors
Legal Counsel & Auditors Corporate Office Colorado Counsel LKA Gold Incorporated Nancy Bentson Essex 3724 47th Street Ct. NW 120 North Taylor Street Gig Harbor, WA 98335 Gunnison, CO 81230 (253) 514-6661 (970) 642-3303 www.lkagold.com www.nbessex.com Securities and General Counsel Auditors Gary R. H
Slide 22: Appendix
Appendix A vein sample from North Raise area in Golden Wonder mine – July, 2013
Slide 23: Golden Wonder Ore Shipments 1984 - 2012
Golden Wonder Ore Shipments 1984 - 2012 Shipments Settlement During Dry Wot AssayAu Total ozs. Payable Settlement Net Smelter Period Purchaser - Processor Tons Type oz/ton Delivered ozs. Au Price Per Oz. Receipts Total 415 ASARCO-Barrick Mercur 857.6 Ore-Cons 1.88 2,920.60 2,686.54 $ 365.62 754,962.
Slide 24: Golden Wonder Mine Potential
Golden Wonder Mine Potential Golden Wonder exploration excerpts/quotes from geologists’ reports: “I believe the Golden Wonder Mine has the potential to grow into a much larger property than its historic production of 140,000 ounces. Among the several reasons I have for this belief are: The northeast
Slide 25: Golden Wonder Mine Potential (2)
Golden Wonder Mine Potential (2) “... observations indicate that the Golden Wonder Mine structure probably extends on the LKA mine property and could be related to the Gold Quartz vein and possibly to other surface Au-Te occurrences previously discovered in the NE extensions. The Golden Wonder Mine
Slide 26: Golden Wonder Mine Potential (3)
Golden Wonder Mine Potential (3) “Obviously, the Golden Wonder rhyolite has a quite significant, albeit unknown, aerialextent. Likewise, the vertical limits of the rhyolite are totally unknown, and as has been pointed out in this report, it is expected that it would extend downward along its vent so
Slide 27: Golden Wonder Mine Potential (4)
Golden Wonder Mine Potential (4) " The gold vein zone now being mined at the Golden Wonder Mine includes numerous individual parallel, en echelon intervals of extremely high-grade gold ore. Although pinching and swelling of the ore intervals presents challenges in exploration, mining at Golden Wonde
Slide 28: One of Only Two Active Gold Producers In Colorado
One of Only Two Active Gold Producers In Colorado
Slide 29: Thank You
GOLD INCORPORATED