Lahontan Gold Corp. (TSXV: LG) (OTCQB: LGCXF) has announced an updated Mineral Resource Estimate (MRE) for its Santa Fe Mine in Nevada, showing a 22% increase in project-wide pit-constrained resources compared to the 2024 MRE. The updated estimate now includes 1.195 million indicated gold equivalent (Au Eq) ounces and 1.19 million inferred Au Eq ounces. This resource growth is significant as it strengthens the foundation for the company's upcoming preliminary economic assessment (PEA) and its goal of commencing mine construction by 2027.
The Santa Fe deposit itself saw a resource increase of more than 26%, while the Slab and York deposits, which are oxide resources, increased by over 37%. These gains are crucial for the economic viability of the project, as oxide resources are typically more amenable to heap-leach processing, which is a lower-cost extraction method. The updated MRE will serve as the basis for a PEA that will evaluate open-pit mining and heap-leach processing, as well as the potential future processing of Santa Fe sulfide resources. This assessment is a critical step toward a production decision.
Lahontan Gold is a Canadian mine development and exploration company focused on gold and silver properties in the Walker Lane of Nevada, a mining-friendly jurisdiction. The Santa Fe Mine, its flagship property, spans 26.4 square kilometers and previously produced 359,202 ounces of gold and 702,067 ounces of silver from 1988 to 1995 using open-pit and heap-leach methods. The project currently hosts a National Instrument 43-101 compliant indicated mineral resource of 1,539,000 ounces 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 resource of 411,000 ounces 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 plans to advance the project toward production, update the Santa Fe PEA, and drill test its satellite West Santa Fe project during 2025.
The updated resource estimate is a key milestone for Lahontan Gold as it progresses toward its development objectives. The company is targeting 2027 for mine construction, and the increased resource base enhances the project's potential to attract financing and move forward. The PEA will provide a more detailed economic assessment, including capital and operating costs, which will be critical for investors to evaluate the project's viability.
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 under National Instrument 43-101. The resource estimate is based on assumptions including a gold price of US$1,950 per ounce, a silver price of US$23.50 per ounce, and variable recoveries for oxide and non-oxide resources. The company's ability to increase resources at Santa Fe and its satellite deposits demonstrates the potential for further expansion as it continues exploration and development activities.
For more information about Lahontan Gold Corp., visit the company's website at www.lahontangoldcorp.com.
