LKA Gold Incorporated announced that it's second quarter, 2013 ore shipments (exploratory) were below normal due to the substantial amount of vein material mined but not shipped before the end of the quarter. Over 200 tons of such material was crushed, bagged and remained on LKA's property at the end of the quarter. Average grades of this unshipped material were approximately 0.74 ounces (21 grams) gold per ton.

A key factor in deciding to delay some of the second quarter shipments came as LKA crews began encountering much higher grades of gold enrichment in a newly discovered vein near the North Raise area of the mine. This vein was located below and adjacent to a high-grade structure encountered in 2010. Crushed ore assays from the first 15 tons extracted from this newly discovered zone averaged 3.68 ounces (104 grams) gold per ton.

Vein assays ran substantially higher, as expected, but are not usually an accurate measure of ore grades over a mining width which contains variable grades of vein material plus waste rock. During the current quarter, over 100 tons of higher grade ore were shipped to Freeport McMoRan's Globe-Miami smelter in Arizona. All second quarter of 2013 shipments were made to Kinross' Kettle River milling facility in Republic, WA.

Gold ore sales (bulk sampling from exploration) are expected to continue to exceed the cost of LKA's exploration program during the current quarter. Vein material is extracted as crews follow the volcanic vent system along the wall of the Uncompahgre Caldera. This method of exploratory mining and underground drilling proved successful in locating the first commercial ore body which yielded more than 133,000 ounces of gold from a single ore chute measuring less than 10,000 square feet.

From 1998 through the second quarter of 2006, the Golden Wonder mine produced over 133,701 ounces from ore with an average grade of 16.01 ozs. (454 grams) gold per ton. Upon resuming exploratory operations in the first quarter of 2009, LKA has shipped twenty-three bulk ore samples containing more than 3,417 ounces with a net value of $3.8 million.

The exceptionally high-grades of Golden Wonder ore has allowed for "direct shipment" with no milling or concentrating required. Investors are cautioned that additional exploration is required and a commercially viable ore reserve has yet to be established.