Lahontan Gold Corp. (TSXV: LG) (OTCQB: LGCXF) has announced an updated Mineral Resource Estimate (MRE) for its Santa Fe Mine in Nevada, revealing a significant 22% increase in project-wide pit-constrained resources compared to the 2024 estimate. The new MRE reports 1.195 million indicated gold equivalent (Au Eq) ounces and 1.19 million inferred Au Eq ounces. Notably, the Santa Fe deposit itself saw a resource increase of over 26%, while indicated and inferred oxide resources at the Slab and York deposits grew by more than 37%.
The updated MRE is a critical milestone for Lahontan, as it will serve as the foundation for a forthcoming preliminary economic assessment (PEA) that will evaluate open-pit mining, heap-leach processing, and the potential future processing of Santa Fe's sulfide resources. The company is targeting mine construction by 2027, signaling a clear path toward production.
This resource expansion underscores the growing value of the Santa Fe Mine, which has a history of past production: between 1988 and 1995, the site produced 359,202 ounces of gold and 702,067 ounces of silver from open-pit mines using heap-leach processing. The updated resource estimate is compliant with Canadian National Instrument 43-101 standards, with indicated resources now totaling 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 inferred resources 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 and inclusive of recovery.
The significance of this update extends beyond the resource numbers. With the global push for gold and silver, particularly in the stable mining jurisdiction of Nevada, Lahontan is positioning itself to capitalize on the growing demand. The company holds four top-tier gold and silver exploration properties in the Walker Lane region, with Santa Fe being its flagship. The updated MRE will inform the PEA, which is expected to outline the economic viability of advancing the project.
Lahontan's strategic plan includes updating the Santa Fe Preliminary Economic Assessment and drilling its satellite West Santa Fe project during 2025. These activities are aimed at further de-risking the project and enhancing its value proposition. The company's focus on oxide resources, which are amenable to low-cost heap-leach processing, could lead to reduced capital and operating costs compared to traditional milling operations.
The updated MRE is based on a gold price of US$1,950 per ounce and a silver price of US$23.50 per ounce, with cut-off grades of 0.15 g/t AuEq for oxide resources and 0.60 g/t AuEq for non-oxide resources. The technical content of the news release has been reviewed and approved by Michael Lindholm, CPG, an independent consulting geologist to Lahontan Gold Corp., who is a Qualified Person under NI 43-101.
For investors, this announcement is a positive indicator of Lahontan's progress in advancing the Santa Fe Mine toward production. The 22% resource increase not only enhances the project's economics but also strengthens the company's position in the gold and silver market. As the PEA is completed, stakeholders will gain a clearer picture of the project's potential, making this an important development to watch in the mining sector.
More information about Lahontan Gold Corp. can be found on its website at www.lahontangoldcorp.com. The full press release is available at https://nnw.fm/OPm3C.
