Results positive for La Teko

Metallurgical tests on an oxide sample from the the True North deposit in central Alaska have returned favorable results for La Teko Resources (LAO-T).

The 50-ton sample consisted of material from both the Hindenburg zone, where the gold recovery was found to be 95%, and the Shepard zone, which has a recovery of 90-94%. The Hindenburg sample averaged 0.09 oz. per ton; the Shepard, 0.12 oz. Gold recoveries appeared to vary little with increased particle size.

The results confirm those achieved by Newmont Mining (NEM-N), La Teko’s partner on the project. In July, low gold prices forced Newmont, which is earning a 65% interest in the property, to shut down development of the property.

In related news, Kinross Gold (K-T) has agreed to acquire all the outstanding shares of La Teko in a stock trade. Shareholders of La Teko will receive one Kinross share in exchange for 2.65 shares of La Teko.

Kinross operates the Fort Knox gold mine, less than 5 miles from True North, which it acquired as a result of merging with Amax Gold earlier this year.