Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has embarked on a critical phase of metallurgical testing at its Santa Fe project, aiming to boost gold and silver recoveries from the mixed oxide-sulfide transition zone. This initiative is part of the company's broader strategy to advance the Santa Fe project toward production, leveraging Nevada's prolific Walker Lane region's mining-friendly jurisdiction.
The company's recent column leach testing focuses on improving the 49% gold recovery rate achieved during the project's Preliminary Economic Assessment. With results expected later this year, Lahontan is optimistic about the potential to significantly enhance project economics. CEO Kimberly Ann highlighted the importance of this testing, noting that improved recoveries in the transition zone could have a substantial impact on the project's overall viability.
Historically, the Santa Fe site has been a significant producer, with past operations yielding approximately 359,000 ounces of gold and over 702,000 ounces of silver. Current estimates suggest the resource holds more than 1.5 million ounces gold equivalent in the indicated category, underscoring the project's potential. The ongoing metallurgical testing and planned 2025 drilling campaign are pivotal to unlocking this value and updating the project's economic assessment.
Lahontan's efforts are supported by favorable metallurgical data from previous tests, including heap leach recoveries of 74.4% for gold in oxide zones. The company's engagement with leading firms for the PEA update reflects its commitment to repositioning Santa Fe as a near-term producer. With Walker Lane's rich mining history and Lahontan's strategic initiatives, the Santa Fe project stands as a cornerstone of the company's ambition to become a leading gold and silver producer in Nevada.
