Lahontan Gold Corp. (TSXV: LG) (OTCQB: LGCXF) has unveiled 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 estimate. The new figures, which include 1.195 million indicated gold equivalent (Au Eq) ounces and 1.19 million inferred Au Eq ounces, underscore the growing potential of the past-producing mine.
The updated MRE highlights a 26% increase in resources at the Santa Fe deposit itself, while indicated and inferred oxide resources at the Slab and York deposits surged by more than 37%. These gains are attributed to ongoing exploration and re-evaluation of the property, which historically produced 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 via open-pit mining and heap-leach processing.
According to the company, the revised resource estimate will serve as the foundation for a forthcoming preliminary economic assessment (PEA) that will examine open-pit mining, heap-leach processing, and the potential future processing of Santa Fe sulfide resources. Lahontan is targeting 2027 for mine construction, signaling a strategic push towards revitalizing the Nevada asset.
“The significant resource growth at Santa Fe, particularly at the Slab and York deposits, demonstrates the untapped potential of this project,” said a company spokesperson. “We are committed to advancing the PEA and moving towards a production decision that could bring economic benefits to the region.”
The updated MRE is based on a cut-off grade of 0.15 g/t AuEq for oxide resources and 0.60 g/t AuEq for non-oxide resources, with assumptions including a gold price of $1,950 per ounce and silver at $23.50 per ounce. Recovery rates vary for oxide gold and silver, while non-oxide recoveries are estimated at 71%.
Lahontan Gold holds four top-tier gold and silver exploration properties in the Walker Lane of Nevada, with Santa Fe being its flagship. The company plans to continue advancing the project towards production, update the Santa Fe PEA, and drill test its satellite West Santa Fe project during 2025.
The technical content of the announcement was reviewed and approved by Michael Lindholm, CPG, an independent consulting geologist, who confirmed the grade and ounces align with the NI 43-101 Technical Report. The full press release is available at https://nnw.fm/OPm3C.
This resource boost positions Lahontan Gold to potentially capitalize on the strong gold market, with the company aiming to become a mid-tier producer in the coming years. The updated MRE is a critical step in de-risking the project and attracting potential partners or investors.
