Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has announced initial analytical results from its 2025 Phase Two drilling program at the Santa Fe Mine Project in Nevada's Walker Lane, reporting six reverse-circulation drill holes totaling 994 metres that delivered significant gold intercepts at both the York and Slab zones. The results highlight the potential for resource expansion and further de-risking of the project as the company advances toward a Preliminary Economic Assessment update.
Highlights from the drilling include a broad intercept of 114.3 metres grading 0.33 g/t gold equivalent at York, including higher-grade mineralization of 18.3 metres grading 0.90 g/t gold equivalent, expanding mineralization north of the current resource pit shell. Additionally, shallow and deeper oxide gold intercepts at Slab may support a deeper conceptual pit and additional resources in an updated Mineral Resource Estimate expected later this year. These results are important as they demonstrate the potential to grow the already substantial resource base at Santa Fe, which currently hosts an Indicated Mineral Resource of 1,539,000 ounces of gold equivalent and an Inferred Resource of 411,000 ounces, as per the NI 43-101 Technical Report.
The Santa Fe Mine project has a history of past production, with 359,202 ounces of gold and 702,067 ounces of silver produced between 1988 and 1995 from open pit mines using heap-leach processing. Lahontan Gold Corp. is focused on advancing the project toward production, with plans to update the Santa Fe Preliminary Economic Assessment and drill test 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 and Qualified Person under NI 43-101.
The implications of these drilling results are significant for Lahontan Gold Corp. and its stakeholders. Expanding the resource base could improve the project's economics and strengthen the case for development. The company's ability to intercept higher-grade mineralization north of the current pit shell suggests that the deposit remains open for expansion, which could lead to a longer mine life and increased production potential. Additionally, the oxide nature of the intercepts at Slab is favorable for heap-leach processing, which was successfully used during historical operations.
Investors and industry observers will be watching for the updated Mineral Resource Estimate, which is expected later this year, as it will provide a clearer picture of the project's scale and viability. The company's progress in advancing the Santa Fe project aligns with broader trends in the gold mining sector, where companies are seeking to develop projects in mining-friendly jurisdictions like Nevada. For more information about Lahontan Gold Corp., visit their website at www.lahontangoldcorp.com.
As the company continues to drill and update its technical studies, the market will gain further insight into the potential of the Santa Fe Mine project. The initial Phase Two results are a positive indicator that the project has the potential to grow and ultimately advance to production, which would create value for shareholders and contribute to the local economy.
