Lahontan Gold Corp. (TSXV: LG) (OTCQB: LGCXF) has announced an updated Mineral Resource Estimate (MRE) for its Santa Fe Mine in Nevada, revealing 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, with the Santa Fe deposit resources increasing by more than 26% and oxide resources at the Slab and York deposits increasing by over 37%.
This significant resource upgrade is a key milestone for Lahontan Gold as it advances the Santa Fe Mine towards production. The updated MRE will form the basis of a forthcoming preliminary economic assessment (PEA) that will evaluate open-pit mining, heap-leach processing, and the potential future processing of sulfide resources. The company is targeting 2027 for mine construction, signaling a clear path towards becoming a producer in the mining-friendly state of Nevada.
The Santa Fe Mine 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 current resource estimate, compliant with Canadian National Instrument 43-101, includes an 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 updated MRE is a testament to the company's ongoing exploration efforts and its commitment to delineating the full potential of the Santa Fe project. The increase in resources, particularly the substantial growth in oxide resources at Slab and York, enhances the project's economic viability and supports the planned open-pit, heap-leach operation. This is crucial for reducing upfront capital costs and expediting the timeline to production.
For investors and the mining industry, this development underscores the value of brownfield exploration and the potential for resource expansion at historically producing mines. The Santa Fe project's location in the Walker Lane of Nevada, a prolific mining jurisdiction, further de-risks the project from a permitting and operational perspective.
Lahontan Gold plans to continue advancing the Santa Fe Mine project towards production, with an updated PEA and drilling at its satellite West Santa Fe project scheduled for 2025. The company's strategic focus on resource growth and development is likely to attract attention from investors seeking exposure to the gold sector, especially given the current economic climate where gold remains a safe-haven asset.
The technical content of the announcement has been reviewed and approved by Michael Lindholm, CPG, an independent consulting geologist and a Qualified Person as defined by National Instrument 43-101. The full details of the MRE are available in the company's technical report, which can be accessed on its website and SEDAR+.
As Lahontan Gold moves forward with its development plans, the increased resource base positions the company to potentially become a significant player in the Nevada gold mining landscape. The 2027 target for construction highlights the company's confidence in the project's feasibility and its ability to execute on its strategic objectives.
For more information on Lahontan Gold Corp., visit the company's website at www.lahontangoldcorp.com. To view the full press release, visit https://nnw.fm/OPm3C.
