Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has unveiled significant new drill results from its 2026 program at the Santa Fe Mine Project in Nevada, highlighting a fresh discovery in Tertiary volcanic rocks and reinforcing the district's potential beyond its established resource base. The company reported that drill hole CAL26-11R returned 13.7 meters grading 1.10 g/t gold equivalent (Au Eq), marking the first significant gold mineralization hosted within these volcanic rocks along the Summit Fault. This new exploration target suggests that the fault system, previously underexplored, could host additional mineralization. Meanwhile, 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 area, which could potentially extend the existing resource.
The company also reported broad intervals of shallow oxide gold and silver mineralization at the Slab West exploration target. Drill holes CAL26-13R and CAL26-15R intersected 35.1 meters grading 0.21 g/t Au Eq and 18.3 meters grading 0.22 g/t Au Eq, respectively. While these grades are lower, the wide intercepts and shallow depths could be amenable to low-cost heap-leach extraction, similar to the past production at Santa Fe. Management emphasized that Slab West remains open in multiple directions, and additional assay results from recently completed drill holes are expected shortly, which could further expand the target.
These results are particularly important as they demonstrate the exploration potential of the Santa Fe project beyond its current resource. The project already hosts a NI 43-101 compliant Indicated Mineral Resource of 1,539,000 ounces of 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 ounces of Au Eq (16,760,000 tonnes grading 0.74 g/t Au and 3.25 g/t Ag). The new discoveries could add to these resources and potentially extend the mine life if they prove to be economically viable.
The company plans to continue advancing the Santa Fe project towards production, with an updated Preliminary Economic Assessment (PEA) expected in 2025. The technical content of the news release has been reviewed and approved by Michael Lindholm, CPG, an independent consulting geologist and Qualified Person as defined by NI 43-101. The company holds four top-tier gold and silver exploration properties in the Walker Lane of Nevada, a mining-friendly jurisdiction.
For investors, these findings underscore the potential for resource growth at Santa Fe, which could enhance the project's value. The discovery of mineralization in volcanic rocks along the Summit Fault opens a new exploration front, while the high-grade intercept at Calvada East could positively impact the resource estimate. The broad oxide zones at Slab West, if further delineated, might be incorporated into future mining plans, leveraging the project's existing heap-leach infrastructure.
Lahontan Gold's flagship Santa Fe Mine had 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. The company's strategy to explore and expand resources while advancing towards production is aligned with the growing demand for gold as a safe-haven asset.
As the company awaits additional assay results, the market will be keenly watching for further updates that could confirm the extent of these new discoveries. The full press release is available at https://ibn.fm/UQWit.
