Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has released 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, including 1.64 g/t gold and 36.2 g/t silver. The stockpile, located adjacent to Heap Leach Pad Two, contains material mined during past operations and is being evaluated for potential reprocessing, which could be more cost-effective than mining and processing fresh rock.
The significance of these results lies in the potential to turn waste into profit. The stockpile material, previously deemed uneconomical, now shows grades that could support a low-cost operation. According to the company, CN-extractable gold assays averaged 43% of corresponding fire assay values, suggesting the material may be amenable to conventional heap leach processing. This is a critical factor because it means the material could be processed using existing infrastructure, significantly reducing capital and operating costs compared to developing a new mine.
The Santa Fe Mine project 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 mines utilizing heap-leach processing. The project currently hosts a 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).
These new drill results could enhance the project's economics by adding a potential source of near-term production. The company plans to continue advancing the Santa Fe Mine project towards production, update its Preliminary Economic Assessment, and drill test its satellite West Santa Fe project during 2025. The positive results from the stockpile drilling may influence the updated PEA, potentially increasing the project's overall value.
For investors, this development is important because it demonstrates that the company is actively exploring ways to maximize the value of its existing assets. By reprocessing the stockpile, Lahontan could generate cash flow sooner and at lower risk than starting a new mining operation. The full press release is available at https://ibn.fm/F7hVP.
Lahontan Gold Corp. is a Canadian mine development and mineral exploration company that holds, through its US subsidiaries, four top-tier gold and silver exploration properties in the Walker Lane of mining friendly Nevada. 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.
