Lahontan Gold Corp. (TSXV: LG) (OTCQB: LGCXF) has released 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, underscoring the growing potential of the flagship property.
The updated resource estimate highlights substantial gains across multiple deposits. The Santa Fe deposit itself saw an increase of more than 26%, while indicated and inferred oxide resources at the Slab and York deposits rose by over 37%. These upgrades reflect continued exploration success and geological modeling refinements, positioning the project for enhanced economic viability.
This updated MRE will serve as the foundation for a forthcoming preliminary economic assessment (PEA), which 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, signaling a clear path toward production. The PEA is expected to provide a comprehensive analysis of the project's financial and operational metrics, including capital and operating costs, recovery rates, and projected returns.
The Santa Fe Mine has a storied history, with past production of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open-pit mining and heap-leach processing. The project is located in the Walker Lane trend, a geologically favorable region in mining-friendly Nevada. Lahontan Gold holds four top-tier gold and silver exploration properties in the area, with Santa Fe being the flagship.
According to the company, the Santa Fe Mine 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) 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), all pit-constrained. The resource estimate uses a cut-off grade of 0.15 g/t AuEq for oxide resources and 0.60 g/t AuEq for non-oxide resources, based on a gold price of US$1,950/oz and silver price of US$23.50/oz.
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 are consistent with the Technical Report, which is available on the company's website and SEDAR+. The company plans to continue advancing the Santa Fe project towards production, update the PEA, and drill test the satellite West Santa Fe project during 2025.
The significant resource increase at Santa Fe underscores the project's growing importance to Lahontan Gold's strategy. With the PEA on the horizon and a construction target of 2027, the company is positioning itself to become a significant gold producer in Nevada. Investors and stakeholders will be closely watching the forthcoming economic assessment to gauge the project's full potential.
