Lahontan Gold Corp. (TSXV: LG) (OTCQB: LGCXF) announced additional results from its 2026 drilling program at the Santa Fe Mine project in Nevada, highlighted by a geotechnical diamond drill hole at the Calvada deposit that also intersected significant oxide gold mineralization. The company said the intercept ranks among the highest-grade results drilled to date within the Central Calvada deposit and supports confidence in advancing the project toward a targeted mine construction start in 2027.
Hole CAL26-03C returned 30.8 meters grading 0.93 grams per tonne gold equivalent (“Au Eq”), including a higher-grade interval of 10.7 meters grading 2.18 g/t Au Eq. Additionally, reverse-circulation drilling at the southern end of the Slab open pit encountered near-surface oxide mineralization, including 15.2 meters grading 0.40 g/t Au Eq and 9.1 meters grading 0.22 g/t Au Eq, helping define mineralization near the Calvada Fault.
These results are important because they demonstrate the potential for high-grade zones within the deposit, which could enhance the project's economics. The Santa Fe Mine project, located in the Walker Lane of Nevada, has a past production record of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open pit mines utilizing heap-leach processing. According to the company's NI 43-101 compliant technical report, the project has 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) 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).
Lahontan Gold is conducting additional drilling across the Santa Fe project, with results expected from its RC program and Sonic drilling campaign evaluating historic stockpiles and heap leach pads. These efforts are part of broader plans to update the project’s mineral resource estimate, complete a preliminary economic assessment, and advance permitting activities. The company aims to start mine construction in 2027, a timeline that could be accelerated by positive drilling results.
The implications of these findings are significant for the mining industry and investors. High-grade oxide intercepts are particularly valuable because oxide ores are typically amenable to heap-leach processing, which can lower capital and operating costs. This could make the Santa Fe project more economically viable in a gold price environment that remains strong. For the local economy in Nevada, advancing the project could create jobs and generate tax revenue. For the broader gold market, any new production from the Santa Fe Mine could help meet global demand.
Given that the Santa Fe Mine already has a substantial resource base and past production history, the new drilling results could de-risk the project and attract further investment. The company’s focus on near-surface oxide mineralization also suggests potential for early cash flow if development proceeds. As Lahontan Gold continues to release results and advance studies, stakeholders will be watching closely for updates on the preliminary economic assessment and permitting milestones.
For more information, visit Lahontan Gold Corp. and the full press release at https://ibn.fm/eIjZy.
