Lahontan Gold Corp. has announced initial analytical results from its 2025 Phase Two drilling program at the Santa Fe Mine Project in Nevada's Walker Lane, reporting six reverse-circulation drill holes totaling 994 metres that delivered significant gold intercepts at both the York and Slab zones. The results indicate potential expansion of mineralization beyond current resource boundaries, which could significantly impact the project's economic assessment and future development plans.
Highlights from the drilling include a broad intercept of 114.3 metres grading 0.33 g/t gold equivalent at the York zone, including higher-grade mineralization of 18.3 metres grading 0.90 g/t gold equivalent. This intercept expands mineralization north of the current resource pit shell, suggesting the mineralized system extends beyond previously defined limits. At the Slab zone, shallow and deeper oxide gold intercepts were identified that may support a deeper conceptual pit and additional resources in an updated Mineral Resource Estimate expected later this year.
The Santa Fe Mine project represents a significant gold resource in mining-friendly Nevada, 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 project currently has a Canadian National Instrument 43-101 compliant Indicated Mineral Resource of 1,539,000 oz Au Eq and an Inferred Mineral Resource of 411,000 oz Au Eq, all pit constrained. The technical content of the news release has been reviewed and approved by Michael Lindholm, CPG, Independent Consulting Geologist to Lahontan Gold Corp., who is a Qualified Person as defined in National Instrument 43-101.
These drilling results are important because they demonstrate the potential for resource expansion at a project with established infrastructure and historical production. The expansion of mineralization at both the York and Slab zones could lead to increased resource estimates, potentially improving the project's economics and extending its mine life. For investors and the mining industry, successful exploration results at established projects like Santa Fe often indicate lower development risk compared to greenfield projects, as they build upon existing geological understanding and infrastructure.
The company plans to continue advancing the Santa Fe Mine project towards production, update the Santa Fe Preliminary Economic Assessment, and drill test its satellite West Santa Fe project during 2025. The full technical details are available in the "Preliminary Economic Assessment, NI 43-101 Technical Report, Santa Fe Project" with an effective date of December 10, 2024. For more information about the company, visit https://www.lahontangoldcorp.com.
These results come at a time when gold exploration in established mining districts like Nevada's Walker Lane is increasingly important for maintaining global gold supply. Successful expansion of resources at existing projects can be more cost-effective than developing new mines, potentially leading to more sustainable mining operations with lower environmental footprints. The updated Mineral Resource Estimate expected later this year will provide crucial data for assessing the project's economic viability and development timeline.
