Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has announced promising results from its 2026 Sonic core drilling program at the Santa Fe Mine Project in Nevada, revealing that historic low-grade stockpiles contain higher-than-expected gold and silver grades. The company reported that nine drill holes in a stockpile adjacent to Heap Leach Pad Two averaged 1.96 g/t gold equivalent (Au Eq), including 1.64 g/t gold and 36.2 g/t silver. This material, previously mined and set aside, is now being evaluated for potential reprocessing, which could offer a lower-cost alternative to mining and processing fresh rock.
The significance of these results lies in the potential economic enhancement of the Santa Fe project. The stockpile material, which was historically considered low-grade, now shows grades that could be economically viable for reprocessing using the existing heap leach infrastructure. Furthermore, cyanide-soluble (CN) gold assays averaged 43% of corresponding fire assay values, suggesting that the material is amenable to conventional heap leach processing. This is a critical indicator because it implies that a significant portion of the gold can be recovered using the established leaching methods, potentially reducing processing costs and increasing overall recovery rates.
These findings come as Lahontan Gold continues to advance the Santa Fe Mine project towards production. The company plans to update the Santa Fe Preliminary Economic Assessment (PEA) and drill test its satellite West Santa Fe project during 2025. The positive stockpile results could play a pivotal role in the upcoming PEA, potentially improving the project's economics by adding a low-cost feed source. The stockpile material does not require drilling, blasting, or primary crushing, which are significant cost components in traditional mining operations.
The Santa Fe Mine has a rich production history, having produced 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open pit mines using 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) 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). These resources are pit constrained and inclusive of recovery assumptions.
The technical content of this announcement 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. The company's focus on the Walker Lane region of Nevada, a mining-friendly jurisdiction, further de-risks the project.
Investors and stakeholders are watching closely as Lahontan Gold continues to release results from its drilling programs. The company's progress on the Santa Fe project, including the evaluation of stockpile reprocessing, could significantly enhance the project's value proposition. The latest news and updates relating to LGCXF are available in the company's newsroom at http://ibn.fm/LGCXF. For more information about Lahontan Gold Corp., visit their website at https://www.lahontangoldcorp.com.
