Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has reported additional drilling results from its 2026 program at the Santa Fe Mine Project in Nevada, revealing a new gold discovery and expanding the potential of the district. The company announced that drill hole CAL26-11R returned 13.7 meters grading 1.10 g/t gold equivalent (Au Eq), marking the first significant mineralization hosted within Tertiary volcanic rocks along the Summit Fault. This new exploration target suggests that the geological model for the area may be broader than previously understood, potentially unlocking additional mineralized zones beyond the current resource pits.
Furthermore, drill hole CAL26-12R intersected 12.2 meters grading 1.26 g/t Au Eq near the base of the current resource pit shell at the Calvada East resource area, indicating that high-grade oxide mineralization continues at depth and may extend the life of the proposed open pit operations. The company also reported broad intervals of shallow oxide gold and silver mineralization at the Slab West exploration target, with holes CAL26-13R and CAL26-15R intersecting 35.1 meters grading 0.21 g/t Au Eq and 18.3 meters grading 0.22 g/t Au Eq, respectively. These results reinforce the district's exploration potential beyond its current resource base, with Slab West remaining open in multiple directions.
The implications of these findings are significant for Lahontan Gold as it seeks to advance the Santa Fe project toward production. The Santa Fe Mine has a past production history of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995, and currently 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 new discoveries could potentially add to these resources, enhancing the project's economic viability.
Management stated that the results underscore the exploration upside at Santa Fe, and additional assay results from recently completed drill holes are expected shortly. The company plans to continue advancing the project, update the Preliminary Economic Assessment, and drill test its satellite West Santa Fe project during 2025. The technical content has been reviewed and approved by Michael Lindholm, CPG, an independent consulting geologist and Qualified Person as defined in NI 43-101.
For investors, this news highlights the potential for resource expansion at Santa Fe, which could positively impact the project's economics and the company's valuation. The discovery of gold in Tertiary volcanic rocks along the Summit Fault opens a new target that was not previously considered in the resource model, suggesting that the mineralized system is more extensive than thought. Additionally, the high-grade intercepts at Calvada East and the broad oxide mineralization at Slab West indicate that the project has multiple zones that could contribute to future resource growth.
As Lahontan Gold continues to release results from its ongoing drilling program, the market will be watching for further confirmation of these new zones. The company's focus on advancing Santa Fe towards production, combined with these exploration successes, positions it favorably in the current gold market. For more information on Lahontan Gold, visit their website at www.lahontangoldcorp.com. The full press release can be viewed at https://ibn.fm/UQWit.
