Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) provided an update on development and exploration activities at its Santa Fe Mine Project in Nevada, stating it remains on track to begin construction in 2027. The company expects to complete an updated mineral resource estimate within weeks and a revised preliminary economic assessment by the end of August 2026, key milestones supporting state and federal permitting.
Lahontan also reported completing 87 drill holes totaling 7,751 meters this year, with the newly identified Slab West gold discovery remaining open in all directions. The company said permitting work continues to advance, including groundwater studies and waste rock characterization, while drilling is underway to evaluate the potential reprocessing of historic heap leach pads as a possible low-cost source of future gold and silver production.
Lahontan announced shareholder approval of a new restricted share unit and deferred share unit plan designed to support the attraction and retention of key personnel. The Santa Fe Mine project, which covers 26.4 km² in the Walker Lane of Nevada, 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.
According to a press release, the Santa Fe Mine currently 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. The company notes that Au Eq is inclusive of recovery.
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 technical content of the 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.
For investors, the progress at Santa Fe represents a potential opportunity in the gold mining sector, with the project located in the mining-friendly state of Nevada. The updated resource estimate and PEA will provide a clearer picture of the project's economics, which could impact Lahontan's valuation and attract further interest from the mining industry.
