Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has reported positive results from a preliminary economic assessment (PEA) for its Santa Fe Mine gold-silver project in Nevada, outlining a post-tax net present value at a 5% discount rate of $820 million and an internal rate of return of 40.1%. The assessment, based on gold prices of $3,600 per ounce and silver prices of $49 per ounce, projects $3.68 billion in life-of-mine revenue and $1.32 billion in after-tax net cash flow over an 11-year active mine life, followed by one year of residual leaching. Average annual production is estimated at approximately 91,900 gold-equivalent ounces, with initial capital costs of $172 million and a projected payback period of 3.7 years. At higher spot-price assumptions, the post-tax net present value increases to approximately $1.13 billion. The company said the updated assessment represents a more than fourteenfold increase in post-tax net present value compared with its 2024 PEA.
Lahontan plans to use the mine plan and production schedule to inform its final Mine Plan of Operations submission to the U.S. Bureau of Land Management and expects to secure federal and state construction permits in 2027. The company also identified potential opportunities for resource expansion through additional exploration and evaluation of historic heap leach pads. The PEA remains preliminary, includes Inferred Mineral Resources and does not establish economic viability or Mineral Reserves. To view the full press release, visit https://ibn.fm/QeKC5.
The implications of this announcement are significant for Lahontan Gold and its stakeholders. The fourteenfold increase in post-tax net present value underscores the project's enhanced economic potential, driven by higher commodity price assumptions and optimized mine planning. This could attract increased investor interest and facilitate financing for the estimated $172 million initial capital expenditure. The projected 3.7-year payback period and robust after-tax cash flow of $1.32 billion provide a strong financial foundation for advancing the Santa Fe Mine toward production. Additionally, the company's plan to submit a final Mine Plan of Operations to the BLM and secure permits by 2027 marks a critical regulatory milestone that could de-risk the project and pave the way for construction and operation.
For investors, the updated PEA highlights Lahontan's ability to generate substantial value from its flagship asset. The company's shares, traded under TSX.V: LG and OTCQB: LGCXF, may see increased attention as the market digests these positive results. More information about Lahontan Gold Corp. is available at www.lahontangoldcorp.com, and the latest news and updates relating to LGCXF can be found at http://ibn.fm/LGCXF.
The Santa Fe Mine project, spanning 26.4 km2, 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. It holds a Canadian National Instrument 43-101 compliant Indicated Mineral Resource of 1,539,000 oz Au Eq and an Inferred Mineral Resource of 411,000 oz Au Eq, all pit constrained. 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.
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