Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has released promising results from its 2026 Sonic core drilling program at the Santa Fe Mine Project in Nevada. The company reported that nine drill holes in a historic low-grade stockpile returned an average of 1.96 g/t gold equivalent (Au Eq), including 1.64 g/t gold and 36.2 g/t silver. This stockpile, situated adjacent to Heap Leach Pad Two, contains previously mined material that could be reprocessed at a lower cost than conventional mining and milling of fresh ore.
The significance of these findings lies in the potential for low-cost gold recovery from material that was previously considered uneconomic. Notably, cyanide-soluble (CN) gold assays averaged 43% of the corresponding fire assay values, suggesting that the stockpile material may be amenable to conventional heap leach processing. This could enable Lahontan to restart or expand operations without the need for extensive new mining, thereby reducing capital expenditures and environmental impact.
The Santa Fe Mine project has a rich history, having produced 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 via open pit mining and heap leach processing. The project currently hosts a National Instrument 43-101 compliant Indicated Mineral Resource of 1,539,000 ounces 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 ounces 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. These resources are reported using a cut-off grade of 0.15 g/t AuEq for oxide resources and 0.60 g/t AuEq for non-oxide resources, with assumptions including a gold price of US$1,950/oz and silver at US$23.50/oz.
The company plans to continue advancing the Santa Fe Mine project towards production, update the Preliminary Economic Assessment (PEA), and drill test its satellite West Santa Fe project during 2025. The technical content of this release has been reviewed and approved by Michael Lindholm, CPG, an independent consulting geologist and a Qualified Person as defined in National Instrument 43-101.
For investors, these results underscore the potential of the Santa Fe project to generate value through reprocessing of stockpiled material, which could significantly enhance the project's economics. The high-grade intercepts in the stockpile suggest that the company has access to a source of feed that could be processed quickly and efficiently, potentially bridging the gap to full-scale production.
Lahontan Gold holds four top-tier gold and silver exploration properties in the Walker Lane of Nevada, with Santa Fe being its flagship. The company is focused on advancing the project towards production, and these drilling results mark a step forward in understanding the full potential of the site.
More detailed information can be found in the full press release at this link. For additional updates on Lahontan Gold, visit their newsroom at http://ibn.fm/LGCXF.
