RE: in the NEWS - from the LKA website......
LKA and Premier Gold Mines Execute Letter of Intent to Conduct Golden Wonder Exploration
GIG HARBOR, Wash., Nov. 2, 2011 /PRNewswire/ -- LKA International, Inc. (OTCQB:LKAI) and Premier Gold Mines, Ltd. (PG:TSX) have entered into a Letter of Intent to jointly conduct exploration at LKA's Golden Wonder mine located near Lake City, Colorado. Under the terms of the arrangement, Premier will design and manage a $2 million, LKA funded, Phase I exploration program over a period not to exceed two years from commencement of field operations. Upon completion of Phase I, Premier will be entitled, but not obligated, to enter into a joint venture agreement with LKA and earn up to a 60% interest in the Golden Wonder by spending $15 million in mine exploration and development over an additional six-year period. Premier may accelerate the earn-in period at its option. If Premier elects to fund exploration beyond Phase I, it will be required to make certain payments (cash and stock) and reimbursements to LKA as part of its initial earn-in obligation.
LKA and Premier will agree to exploration objectives and budgets prior to commencement of Phase I operations, and Premier will be entitled to receive management fees for project supervision. LKA expects to engage certain investment banking sources, with Premier's assistance, to fund the new program which is expected to commence shortly thereafter. A complete version of the LKA-Premier Letter of Intent will be filed with the Securities and Exchange Commission on Form 8-K and may be obtained on the SEC's website at www.sec.gov
About Premier Gold Mines Limited
Premier Gold Mines is one of North America's leading exploration companies with a high-quality pipeline of projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company's portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the Carlin Trend in Nevada. Premier has a current market capitalization of more than $550 million.
About LKA and the Golden Wonder Mine
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) from ore with an average grade of 16.01 ozs. gold per ton. Upon resuming operations (exploration) in the first quarter of 2009, LKA has focused its efforts on extending the mine's previous production zones. As part of the exploration program eleven bulk ore samples containing more than 1,500 ounces of gold have been shipped and sold to Teck, Yukon-Nevada & Kinross. The ore grades of these shipments have exceeded 1.52 oz. (43.1 grams) gold per dry weight ton. Total gold production since LKA acquired the property in 1982 has exceeded 137,715 ounces with an average ore grade of 13.56 oz. (384.4 grams) gold per ton. Historically, the high-grade nature of Golden Wonder ore has allowed for "direct shipment" with no milling or concentrating required. Investors are cautioned that a commercially viable ore reserve has yet to be established and there can be no guarantee that one will be.