Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has released results from its 2026 Sonic core drilling program at the Santa Fe Mine Project, revealing that nine drill holes into a historic low-grade stockpile returned an average of 1.96 g/t gold equivalent, including 1.64 g/t gold and 36.2 g/t silver. This stockpile, located adjacent to Heap Leach Pad Two, contains material from previous mining operations that the company is evaluating for potential reprocessing. The significance lies in the possibility of processing this material at a fraction of the cost of mining and milling fresh ore, which could significantly enhance the project's economic viability and reduce its environmental footprint.
The drilling results also indicated that cyanide-soluble gold assays averaged 43% of corresponding fire assay values, suggesting that the material is amenable to conventional heap leach processing. This is crucial because it implies that the stockpile could be processed using existing infrastructure, potentially lowering capital expenditures and operational costs. The company plans to incorporate these findings into its ongoing feasibility studies and Preliminary Economic Assessment update.
Lahontan Gold is a Canadian mine development and exploration company focused on top-tier gold and silver properties in the Walker Lane of Nevada. Its flagship Santa Fe Mine project, which spans 26.4 km², has a past production history of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 using open-pit mining and heap-leach processing. The project hosts a NI 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) and an Inferred Mineral Resource of 411,000 oz Au Eq (16,760,000 tonnes grading 0.74 g/t Au and 3.25 g/t Ag), all pit-constrained. The company is advancing the project towards production and aims to update the Santa Fe Preliminary Economic Assessment in 2025.
The reprocessing of stockpiled material is a growing trend in the mining industry as it offers a lower-risk, lower-cost method to recover additional metals from previously mined material. By utilizing existing heap leach pads and processing facilities, companies can avoid the high costs of new mine development and reduce environmental disturbance. For Lahontan, the positive results from this drilling program could increase the project's overall resource base and improve the economics of the Santa Fe Mine. The company's management, led by a qualified person, has reviewed and approved the technical content of this release, ensuring compliance with NI 43-101 standards.
Investors and stakeholders will be watching closely as Lahontan continues to evaluate the stockpile's potential and integrate these results into its project development plans. The company's forward-looking strategy includes testing its satellite West Santa Fe project during 2025, which could further expand its resource base in the region.
