Lahontan Gold Corp. (TSXV: LG) (OTCQB: LGCXF) has announced an updated Mineral Resource Estimate (MRE) for its Santa Fe Mine in Nevada, revealing a 22% increase in project-wide pit-constrained resources compared to the 2024 estimate. The new MRE includes 1.195 million indicated gold equivalent (Au Eq) ounces and 1.19 million inferred Au Eq ounces. This growth is primarily driven by a more than 26% increase in resources at the Santa Fe deposit itself, while indicated and inferred oxide resources at the Slab and York deposits surged by over 37%.
The updated MRE is a critical milestone for Lahontan Gold, as it will serve as the foundation for a forthcoming preliminary economic assessment (PEA) that will examine open-pit mining, heap-leach processing, and potential future processing of sulfide resources at Santa Fe. The company is targeting 2027 for mine construction, signaling confidence in the project's economic viability and strategic importance.
Lahontan Gold's flagship Santa Fe Mine project, spanning 26.4 square kilometers in the Walker Lane of Nevada, has a rich production history, having produced 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 using open-pit mining and heap-leach processing. The updated resource estimate underscores the project's potential to support a renewed mining operation.
The company plans to continue advancing the Santa Fe Mine towards production, with an updated PEA and further drilling at its satellite West Santa Fe project scheduled for 2025. This progress aligns with the broader trend of increasing gold and silver exploration in Nevada, a mining-friendly jurisdiction that remains a top destination for mineral development.
The technical content of this announcement has been reviewed and approved by Michael Lindholm, CPG, an independent consulting geologist and Qualified Person under National Instrument 43-101. The updated MRE is based on assumptions including a gold price of $1,950 per ounce, a silver price of $23.50 per ounce, and varying recovery rates for oxide and non-oxide resources.
For investors, this resource increase is a positive indicator of the project's scale and potential profitability. The enhanced resource base could lead to a more robust PEA, potentially improving the project's economics and reducing investment risk. Moreover, the timeline for construction by 2027 suggests that Lahontan Gold is positioning itself to capitalize on the current precious metals market cycle.
Lahontan Gold Corp. is a Canadian mine development and exploration company holding four top-tier gold and silver properties in Nevada. The company's focus on advancing the Santa Fe Mine towards production aligns with its commitment to creating shareholder value through responsible resource development.
For more information, visit the company's website at Lahontan Gold Corp. and view the full press release at NetworkNewsWire.
