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 in Nevada, 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 the company is evaluating for potential future reprocessing, which could offer a lower-cost alternative to mining and processing fresh rock.
The drilling results are notable because CN-extractable gold assays averaged 43% of corresponding fire assay values, suggesting the material may be amenable to conventional heap leach processing. This is significant for the economics of the project, as reprocessing stockpiled material could reduce operating costs and environmental impact compared to traditional mining methods. For a company aiming to bring the Santa Fe Mine back into production, these results bolster the case for a near-term, lower-capital pathway to generate cash flow.
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 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, 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. These resources were reported in the “Preliminary Economic Assessment, NI 43-101 Technical Report, Santa Fe Project,” with an effective date of December 10, 2024, and report date of January 24, 2025.
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 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 confirmed that the grade and ounces in this press release are consistent with those in the Technical Report.
This development is important for the mining industry as it highlights the growing trend of reprocessing historic stockpiles to extract additional value with lower capital intensity and reduced environmental footprint. For investors, the results could signal a potential increase in the project's value and a shorter timeline to production. The company's focus on the Walker Lane region of Nevada, a mining-friendly jurisdiction, further enhances the project's attractiveness.
For more information about Lahontan Gold Corp., please visit their website at www.lahontangoldcorp.com. The full press release is available at https://ibn.fm/F7hVP.
