Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has released new assay results from its 2026 sonic drilling program at the Santa Fe Mine Project, indicating that a historic low-grade stockpile may offer a significant opportunity for low-cost gold and silver recovery. The company reported that nine drill holes into the stockpile returned an average of 1.96 grams per tonne (g/t) gold equivalent, with individual assays showing 1.64 g/t gold and 36.2 g/t silver. These results are particularly noteworthy because the stockpile material has already been mined and is situated adjacent to the existing Heap Leach Pad Two, potentially allowing for reprocessing at a fraction of the cost of mining and processing fresh ore.
The implications of this announcement are substantial for Lahontan Gold's development strategy. The stockpile, which consists of previously mined material that was set aside during earlier operations, could be processed through the existing heap leach infrastructure, avoiding the significant capital expenditures typically required for new mining projects. The company highlighted that cyanide-soluble gold assays averaged 43% of the corresponding fire assay values, suggesting that the material is amenable to conventional heap leach processing, a method that is both economically and environmentally efficient. This could translate into a lower-cost production scenario that enhances the overall project economics and potentially accelerates the timeline to production.
The Santa Fe Mine project, located in the Walker Lane of Nevada, has a rich production history, having produced 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 via open pit mining and heap leaching. The project currently hosts a National Instrument 43-101 compliant Indicated Mineral Resource of 1,539,000 ounces of gold equivalent (48,393,000 tonnes grading 0.92 g/t Au and 7.18 g/t Ag) and an Inferred Mineral Resource of 411,000 ounces of gold equivalent (16,760,000 tonnes grading 0.74 g/t Au and 3.25 g/t Ag). These resources are pit-constrained, and the company is actively advancing the project towards a production decision.
The positive results from the stockpile drilling add a new dimension to the project's potential. By evaluating the reprocessing of this material, Lahontan Gold is demonstrating a commitment to maximizing value from existing assets while minimizing environmental impact. The company plans to continue its development efforts, including updating the Preliminary Economic Assessment (PEA) for the Santa Fe Mine and drilling its satellite West Santa Fe project during 2025. The technical content of this news release has been reviewed and approved by Michael Lindholm, CPG, an Independent Consulting Geologist to Lahontan Gold, who is a Qualified Person under National Instrument 43-101.
Investors and stakeholders can view the full press release for more details at https://ibn.fm/F7hVP. For ongoing updates on the company, interested parties are encouraged to visit the company's newsroom at http://ibn.fm/LGCXF.
