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 updated MRE now includes 1.195 million indicated gold equivalent ounces and 1.19 million inferred gold equivalent ounces, marking a significant advancement for the company's flagship property.
The Santa Fe deposit itself saw resources increase by more than 26%, while indicated and inferred oxide resources at the Slab and York deposits grew by over 37%. This substantial growth underscores the potential of the Santa Fe Mine, which had past production of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open pit mines utilizing heap-leach processing.
The updated MRE will form the basis of a forthcoming preliminary economic assessment (PEA) that will examine open-pit mining, heap-leach processing, and potential future processing of Santa Fe sulfide resources. Lahontan is targeting 2027 for mine construction, signaling a clear path toward production. The company plans to continue advancing the project, update the PEA, and drill test its satellite West Santa Fe project during 2025.
According to the company, the Santa Fe Mine now holds a Canadian National Instrument 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, 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 Au Eq is inclusive of recovery, and the technical report is available on the company's website and SEDAR+.
The updated resource estimate is a key milestone for Lahontan Gold, as it enhances the project's economic viability. The company holds, through its US subsidiaries, four top-tier gold and silver exploration properties in the Walker Lane of mining-friendly Nevada, with the Santa Fe Mine being its flagship. The project spans 26.4 square kilometers and has a history of successful production, making it a promising asset for future development.
The technical content of the announcement was 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. Mr. Lindholm confirmed that the grade and ounces in the press release match those in the Technical Report.
Lahontan's progress at Santa Fe is part of a broader strategy to advance its properties in Nevada, a region known for its favorable mining environment. The company's focus on updating the PEA and targeting 2027 for construction demonstrates its commitment to moving the project forward. Investors and stakeholders will be watching closely as the company continues to develop its assets and work towards becoming a gold producer.
