Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) is advancing its Santa Fe Mine project toward a planned restart in early 2027, building on the property's demonstrated production history rather than theoretical potential. The mine previously operated successfully from 1988 to 1995, producing 359,202 ounces of gold and 702,067 ounces of silver through open-pit mining and heap leach processing, which remains the lowest-cost production method for oxide gold deposits.
The mine's closure in 1995 resulted purely from economic factors when gold prices dropped to $340 per ounce, leaving substantial mineralization in the ground that forms the foundation for Lahontan's current development strategy. According to CEO Kimberly Ann, the company is deep in the permitting process, having started approximately two and a half years ago to ensure responsible development. "We have enough to have mine again now and we're fast tracking it," Ann stated during a recent interview.
The Santa Fe Mine project holds a Canadian National Instrument 43-101 compliant Indicated Mineral Resource of 1,539,000 gold equivalent ounces grading 0.99 g/t Au Eq and an Inferred Mineral Resource of 411,000 gold equivalent ounces grading 0.76 g/t Au Eq, all pit constrained. The company plans to update the Santa Fe Preliminary Economic Assessment and drill test its satellite West Santa Fe project during 2025, as detailed in the technical report available at https://lahontangoldcorp.com.
This development is significant for the mining industry and investors as it represents a lower-risk mining opportunity with proven production capabilities and existing infrastructure. The restart timing aligns with current favorable gold market conditions, potentially creating economic benefits for Nevada's mining sector and demonstrating how previously uneconomical projects can become viable with improved commodity prices and advanced planning. The project's use of heap leach processing also highlights the continuing importance of cost-effective extraction methods in gold mining operations.
