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 comprises 1.195 million indicated gold equivalent (Au Eq) ounces and 1.19 million inferred Au Eq ounces. The Santa Fe deposit itself saw a more than 26% increase in resources, while indicated and inferred oxide resources at the Slab and York deposits rose by over 37%.
This significant resource upgrade underscores the growing economic potential of the Santa Fe project. The updated MRE will serve as the foundation for a forthcoming preliminary economic assessment (PEA) that will evaluate open-pit mining, heap-leach processing, and the potential future processing of sulfide resources. Lahontan is targeting 2027 for the commencement of mine construction, signaling a clear path towards production.
The Santa Fe Mine has a rich history, with past production of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open-pit operations using heap-leach processing. The project now hosts 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 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 and inclusive of recovery.
The company plans to continue advancing the Santa Fe project towards production, update the Santa Fe Preliminary Economic Assessment, and drill test its satellite West Santa Fe project during 2025. 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. Mr. Lindholm confirmed that the grade and ounces reported are consistent with the Technical Report, though he was not an author of the report.
The updated resource estimate is a crucial step for Lahontan Gold as it seeks to de-risk the project and attract investment. The increase in oxide resources, particularly at Slab and York, enhances the project's near-term production potential through low-cost heap-leach processing. The inclusion of sulfide resources in future processing scenarios adds long-term upside.
With the global push for gold and silver as safe-haven assets, the expansion of resources at Santa Fe positions Lahontan Gold to capitalize on favorable market conditions. The company's focus on Nevada, a mining-friendly jurisdiction, further reduces operational risks. As the company moves towards a PEA and eventual construction, stakeholders will be watching closely for updates on financing and permitting.
For more information on Lahontan Gold Corp., visit the company's website at www.lahontangoldcorp.com. The full press release can be viewed at https://nnw.fm/OPm3C.
