Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has announced additional results from its 2026 Sonic core drilling program at the Santa Fe Mine Project in Nevada, 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. This news is significant because it suggests the company may be able to reprocess previously mined material at a lower cost than mining and processing fresh rock, potentially enhancing the project's economics.
The stockpile, located adjacent to Heap Leach Pad Two, contains material that was mined during past operations. The company is evaluating this material for potential future reprocessing, which could provide a cheaper source of feed for its heap leach facility. Notably, cyanide-soluble gold assays averaged 43% of corresponding fire assay values, indicating that the material may be amenable to conventional heap leach processing. This is an important finding because it suggests that the gold in the stockpile can be extracted efficiently using existing infrastructure, reducing the need for new capital expenditures.
The Santa Fe Mine project has a rich history, with past production of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open pit mines using heap-leach processing. According to the company's NI 43-101 Technical Report, the project hosts an 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, together grading 0.99 g/t Au Eq) 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, together grading 0.76 g/t Au Eq), all pit constrained.
The company plans to continue advancing the Santa Fe Mine project towards production, 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, Independent Consulting Geologist to Lahontan Gold Corp., who is a Qualified Person as defined in National Instrument 43-101.
These results could have significant implications for Lahontan Gold and the broader mining sector. By demonstrating that the stockpile contains economically viable grades, the company may be able to extend the life of its operations without the need for extensive new mining. This approach aligns with the industry's growing focus on sustainability and resource efficiency, as reprocessing historical waste materials can reduce environmental impact and lower operational costs.
For investors, the positive drilling results from the stockpile provide further validation of the Santa Fe project's potential. The ability to reprocess this material could improve the project's cash flow and overall profitability, making it a more attractive investment opportunity. Additionally, the company's plans to advance the project towards production and update its economic assessment are positive indicators for future growth.
Lahontan Gold Corp. is a Canadian mine development and mineral exploration company that holds, through its US subsidiaries, four top-tier gold and silver exploration properties in the Walker Lane of mining-friendly Nevada. The Santa Fe Mine project is its flagship property, spanning 26.4 km². For more information, visit the company's website at www.lahontangoldcorp.com. The full press release can be viewed at https://ibn.fm/F7hVP.
