Lahontan Gold Corp. (TSXV: LG) (OTCQB: LGCXF) has announced an updated Mineral Resource Estimate (MRE) for its Santa Fe Mine in Nevada, revealing a 22% increase in project-wide pit-constrained resources compared to the 2024 MRE. The new estimate includes 1.195 million indicated gold equivalent (Au Eq) ounces and 1.19 million inferred Au Eq ounces, with the Santa Fe deposit itself seeing a more than 26% increase. Additionally, indicated and inferred oxide resources at the Slab and York deposits increased by more than 37%.
The updated MRE will serve as the foundation for a forthcoming preliminary economic assessment (PEA) that will examine open-pit mining, heap-leach processing, and the potential future processing of Santa Fe sulfide resources. Lahontan is targeting 2027 for mine construction, signaling a clear path toward production.
This resource upgrade is a significant milestone for Lahontan, as it enhances the project's economic viability and strengthens its position in the mining-friendly Walker Lane district of Nevada. The Santa Fe Mine has a history of past production, with 359,202 ounces of gold and 702,067 ounces of silver extracted between 1988 and 1995 from open-pit mines using heap-leach processing. The updated resource figures underscore the project's potential for renewed development.
The technical content of this news release has been reviewed and approved by Michael Lindholm, CPG, an Independent Consulting Geologist to Lahontan Gold Corp., who is a Qualified Person as defined in National Instrument 43-101. The updated MRE is detailed in the “Preliminary Economic Assessment, NI 43-101 Technical Report, Santa Fe Project,” with an effective date of December 10, 2024, and report date of January 24, 2025.
For context, the Santa Fe Mine project encompasses 26.4 square kilometers and holds a Canadian National Instrument 43-101 compliant Indicated Mineral Resource of 1,539,000 oz Au Eq (48,393,000 tonnes grading 0.92 g/t Au and 7.18 g/t Ag) and an Inferred Mineral Resource of 411,000 oz Au Eq (16,760,000 tonnes grading 0.74 g/t Au and 3.25 g/t Ag), all pit constrained. The updated MRE reflects a more robust understanding of the deposit, likely due to additional drilling and improved geological modeling.
Lahontan Gold Corp. is a Canadian mine development and mineral exploration company holding four top-tier gold and silver exploration properties in the Walker Lane of Nevada. The company plans to continue advancing the Santa Fe Mine project towards production, update the Santa Fe Preliminary Economic Assessment, and drill test its satellite West Santa Fe project during 2025.
The significance of this resource increase cannot be overstated. For investors, the 22% boost in gold equivalent resources enhances the project's potential to support a long-life mining operation. The forthcoming PEA will provide more detailed economic parameters, including capital and operating costs, which will be crucial in determining the project's feasibility. With a target of 2027 for mine construction, Lahontan is positioning itself to capitalize on the current gold price environment.
Moreover, the increase in oxide resources at the Slab and York deposits, which are amenable to heap-leach processing, could lower processing costs and improve project economics. The company's focus on open-pit mining and heap-leach processing aligns with industry best practices for similar deposits in Nevada.
As Lahontan advances towards a PEA and potential production, the updated resource estimate provides a solid foundation for future development decisions. Investors and stakeholders will be watching closely for the PEA results, which are expected to outline the project's economic viability and production timeline.
