Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has announced results from its 2026 Sonic core drilling program at the Santa Fe Mine Project, revealing that nine drill holes in a historic low-grade stockpile averaged 1.96 g/t gold equivalent (Au Eq), including 1.64 g/t gold and 36.2 g/t silver. The stockpile, located adjacent to Heap Leach Pad Two, contains material from past mining operations that could be reprocessed at a lower cost than mining and processing fresh rock.
The significance of these results lies in the potential to enhance the project's economics without the need for additional mining. Reprocessing stockpiled material can extend mine life and improve cash flows, especially in a favorable gold price environment. The CN-extractable gold assays averaged 43% of corresponding fire assay values, indicating that the material may be amenable to conventional heap leach processing, which is a cost-effective method already used at the site.
Lahontan Gold is advancing its flagship Santa Fe Mine project, 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. The project boasts 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).
The company plans to continue advancing the Santa Fe Mine towards production, update its Preliminary Economic Assessment, and drill test its satellite West Santa Fe project during 2025. These stockpile results could contribute to the updated economic assessment, potentially showing a lower capital intensity path to initial production.
Investors may view this as a positive development because it demonstrates the company is actively evaluating all available resources to maximize value. The ability to reprocess stockpiles could provide a quicker revenue stream compared to traditional mining, which may be appealing in the current market. Furthermore, the project's location in mining-friendly Nevada reduces jurisdictional risk.
However, it is important to note that these are initial drill results, and further metallurgical testing and economic studies are required to confirm the viability of reprocessing. The company will need to complete a preliminary economic assessment to quantify the potential benefits. Interested parties can find more information on the company's website and SEDAR+.
For the full press release, visit https://ibn.fm/F7hVP.
This news is part of ongoing efforts by Lahontan Gold to unlock value from the Santa Fe Mine. The company's technical disclosure has been reviewed and approved by Michael Lindholm, CPG, a Qualified Person as defined by NI 43-101. With a solid resource base and additional exploration upside, Lahontan Gold is positioning itself as a potential near-term producer in the Walker Lane district.
