Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has announced additional results from its 2026 Sonic core drilling program at the Santa Fe Mine Project, revealing that nine drill holes in a historic low-grade stockpile averaged 1.96 g/t gold equivalent (Au Eq), including 1.64 g/t gold and 36.2 g/t silver. The stockpile, located adjacent to Heap Leach Pad Two, contains previously mined material that is being evaluated for potential future reprocessing, which could be more cost-effective than mining and processing fresh rock. Notably, CN-extractable gold assays averaged 43% of corresponding fire assay values, suggesting the material may be amenable to conventional heap leach processing.
These results are significant for Lahontan Gold as they potentially unlock value from existing surface material, reducing the need for new mining and lowering operational costs. The Santa Fe Mine project, which had past production of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open pit mines utilizing heap-leach processing, already hosts a substantial resource. According to the company, the Santa Fe Mine has 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, together grading 0.99 g/t Au Eq) 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, together grading 0.76 g/t Au Eq), all pit constrained (Au Eq is inclusive of recovery, as per the Santa Fe Project Technical Report).
The company's strategy includes advancing the Santa Fe Mine project towards production, updating the Preliminary Economic Assessment, and drilling its satellite West Santa Fe project during 2025. The technical content of this news release has been reviewed and approved by Michael Lindholm, CPG, Independent Consulting Geologist to Lahontan Gold Corp., who is a Qualified Person as defined in National Instrument 43-101. Mr. Lindholm was not an author for the Technical Report but confirmed that the grade and ounces in this press release are consistent with those given in the Technical Report.
The potential reprocessing of the stockpile material could significantly enhance the project's economics by providing a lower-cost feed source for the heap leach facility. With gold and silver prices remaining strong, the ability to process this material efficiently could extend the mine's life and increase overall recoveries. Investors and stakeholders will be watching closely as Lahontan Gold continues to evaluate the feasibility of this opportunity.
For more information on Lahontan Gold Corp., please visit their website at www.lahontangoldcorp.com. The full press release is available at https://ibn.fm/F7hVP.
