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 new estimate includes 1.195 million indicated gold equivalent (Au Eq) ounces and 1.19 million inferred Au Eq ounces, marking a significant milestone for the company as it advances the project toward development.
The updated MRE shows that resources at the Santa Fe deposit have increased by more than 26%, while indicated and inferred oxide resources at the Slab and York deposits have grown by over 37%. These gains are attributed to continued drilling and resource modeling efforts, which have expanded the known mineralization and improved confidence in the deposit's geometry and grade distribution.
This resource update is critical as it will form the basis for a forthcoming preliminary economic assessment (PEA) that will evaluate open-pit mining and heap-leach processing, as well as the potential future processing of Santa Fe sulfide resources. The company is targeting 2027 for mine construction, positioning the Santa Fe project as a near-term development opportunity in the mining-friendly jurisdiction of Nevada.
The Santa Fe Mine has a history of production, having produced 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open-pit operations using heap-leach processing. With the new resource estimate, the project now 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, together grading 0.99 g/t Au Eq) and an inferred 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.
According to the company, the updated MRE will be detailed in a technical report that will be filed on SEDAR+. The resource estimate was prepared using a cut-off grade of 0.15 g/t AuEq for oxide resources and 0.60 g/t AuEq for non-oxide resources, assuming a gold price of US$1,950/oz and a silver price of US$23.50/oz. Oxide gold recoveries are estimated to range from 28% to 79%, with oxide silver recoveries ranging from 8% to 30%, and non-oxide gold and silver recoveries at 71%.
Michael Lindholm, CPG, an independent consulting geologist to Lahontan Gold, reviewed and approved the technical content of the announcement. He confirmed that the grades and ounces reported are consistent with those in the Technical Report, although he was not an author of the report and does not take responsibility for the resource calculation.
The company plans to continue advancing the Santa Fe project toward production, with updates to the PEA and drilling at its satellite West Santa Fe project scheduled for 2025. This progress underscores Lahontan's commitment to developing a significant gold-silver operation in Nevada, a jurisdiction known for its favorable mining policies and infrastructure.
For more information, visit the company's website at www.lahontangoldcorp.com.
