Lahontan Gold Corp. (TSXV: LG) (OTCQB: LGCXF) has released 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 MRE. The new estimate comprises 1.195 million indicated gold equivalent (Au Eq) ounces and 1.19 million inferred Au Eq ounces. The Santa Fe deposit itself saw a more than 26% increase, while indicated and inferred oxide resources at the Slab and York deposits grew by over 37%. This significant resource upgrade is a key step for the company as it advances toward a preliminary economic assessment (PEA) and ultimately aims for mine construction in 2027.
The updated MRE will serve as the foundation for a forthcoming PEA that will evaluate open-pit mining and heap-leach processing, as well as the potential future processing of Santa Fe's sulfide resources. The resource growth is particularly notable for oxide resources, which are typically more amenable to low-cost heap-leach extraction. The increase in oxide resources at Slab and York, which are satellite deposits to the main Santa Fe pit, could enhance the project's overall economics by providing additional feed to a central processing facility.
The Santa Fe Mine has a history of production, having yielded 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open-pit operations using heap-leach processing. The project is located in the Walker Lane trend in Nevada, a mining-friendly jurisdiction with established infrastructure. The updated resource estimate is compliant with Canadian National Instrument 43-101 standards and was prepared under the supervision of Michael Lindholm, CPG, an independent consulting geologist and Qualified Person.
Lahontan Gold plans to continue advancing the Santa Fe project towards production, with a focus on updating the PEA and drilling its satellite West Santa Fe project during 2025. The company's strategy is to leverage the increased resource base to attract financing and secure permitting for the projected 2027 construction timeline. The resource upgrade also underscores the potential for the Santa Fe Mine to become a significant gold and silver producer in the region.
For investors, this development is crucial as it demonstrates the growing value of Lahontan's flagship asset. The enhanced resource base could improve the project's economic viability and de-risk the development path. The company's progress will be closely watched as it moves towards the PEA, which will provide more detailed cost estimates and production forecasts. The updated MRE is a positive indicator of the project's potential and a testament to the effectiveness of the company's exploration and development efforts.
More information about the updated resource estimate and the company's plans can be found in the full press release at https://nnw.fm/OPm3C. Additionally, for ongoing updates on Lahontan Gold, interested parties can visit the company's newsroom at http://nnw.fm/LGCXF.
