Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has released additional results from its 2026 Sonic core drilling program at the Santa Fe Mine Project, 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. These results are significant because they indicate that previously mined material, which was once considered waste, may now be economically viable to reprocess, offering a lower-cost alternative to mining and processing fresh ore.
The stockpile is located adjacent to Heap Leach Pad Two and contains material that was mined during the project's past production phase. The company is evaluating this material for potential future reprocessing, a strategy that could significantly reduce operational costs and extend the mine's life. Notably, cyanide-soluble (CN-extractable) gold assays averaged 43% of corresponding fire assay values, suggesting that the material is amenable to conventional heap leach processing. This is a key finding because it implies that the stockpile could be processed using existing infrastructure, potentially lowering capital and operating expenditures.
These results come as Lahontan Gold continues to advance the Santa Fe Mine project towards production. The company plans to update the Santa Fe Preliminary Economic Assessment and drill test its satellite West Santa Fe project during 2025. The Santa Fe Mine has a past production history of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995, and currently hosts a 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) 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).
The implications of these stockpile drilling results are twofold. First, they enhance the economic potential of the Santa Fe project by adding a new source of feed material that may be cheaper to process. Second, they demonstrate the company's commitment to maximizing value from its existing assets. The high gold equivalent grades, coupled with the amenability to heap leaching, could improve the project's overall economics and make it more attractive to investors.
Lahontan Gold Corp. is a Canadian mine development and mineral exploration company that holds four top-tier gold and silver exploration properties in the Walker Lane of mining-friendly Nevada. The flagship Santa Fe Mine project is a 26.4 km² property with significant historical production and substantial resources. The company is focused on advancing this project towards production, with a clear strategy to update the preliminary economic assessment and continue exploration.
These latest drill results are a positive indicator for the company's future. As the mining industry continues to seek ways to reduce costs and increase efficiency, the ability to reprocess stockpiled material offers a compelling opportunity. For Lahontan Gold, this could translate into a faster path to production and a stronger financial position.
For more information on the full press release, visit https://ibn.fm/F7hVP. To stay updated on the latest news and updates regarding LGCXF, see the company's newsroom at http://ibn.fm/LGCXF.
