Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has reported new drill results from its 2026 drilling program at the Santa Fe Mine project in Nevada, highlighting a significant new gold discovery in Tertiary volcanic rocks along the Summit Fault and additional high-grade oxide mineralization at the Calvada East resource area. The findings underscore the district's exploration potential beyond its current resource base, which could enhance the project's economic viability.
Drill hole CAL26-11R returned 13.7 meters grading 1.10 g/t gold equivalent (Au Eq), establishing a new exploration target in volcanic rocks, a host not previously recognized for mineralization at Santa Fe. This expands the geological understanding of the deposit and opens up new areas for further exploration. 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, potentially adding to the existing oxide resource. These results indicate that mineralization continues beyond the current resource boundaries, which could lead to an expansion of the resource estimate.
At the Slab West exploration target, the company reported broad intervals of shallow oxide gold and silver mineralization. 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 intervals and shallow depths suggest potential for bulk-tonnage, low-cost heap-leach operations. Management noted that Slab West remains open in multiple directions, and additional assay results from recently completed drill holes are expected shortly, which could further extend the mineralization.
The Santa Fe Mine project has a history of past production, with 359,202 ounces of gold and 702,067 ounces of silver recovered between 1988 and 1995 from open pit mines using heap-leach processing. The project 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), all pit-constrained. These resources were reported in a Preliminary Economic Assessment (PEA) with an effective date of December 10, 2024.
The company plans to continue advancing the Santa Fe project towards production, update the PEA, and drill test its satellite West Santa Fe project during 2025. The technical content of this news release was reviewed and approved by Michael Lindholm, CPG, an Independent Consulting Geologist to Lahontan Gold Corp., who is a Qualified Person as defined in National Instrument 43-101. The release notes that the Technical Report is available on the company's website and SEDAR+.
These new discoveries are significant because they could increase the resource base and improve the project's economics. The identification of gold in volcanic rocks along the Summit Fault suggests that the mineralized system is more extensive than previously thought, potentially leading to a larger resource and longer mine life. The additional oxide mineralization at Calvada East and Slab West could be amenable to low-cost processing, enhancing the project's profitability. As the company awaits more assay results, the market will be watching to see if these targets continue to deliver, which could positively impact Lahontan Gold's valuation.
