Lahontan Gold Corp. (TSXV: LG) (OTCQB: LGCXF) has provided an update on the development, permitting, and exploration activities at its Santa Fe Mine project in Nevada, signaling steady progress toward a new mining operation. The company announced the completion of a 2,569-meter geotechnical drill campaign, which supports mine permitting and waste rock characterization. Additionally, an updated mineral resource estimate is expected in the coming weeks, and plans are in place for up to 7,000 meters of exploration drilling across multiple targets.
The company is fully funded into 2027, following its recent Cdn$13.6 million private placement and ongoing warrant exercises. This financial backing positions Lahontan to complete permitting in 2027 and advance toward construction of the new Santa Fe Mine. The Santa Fe property, covering 26.4 km², previously produced 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 through open pit mining and heap-leach processing. Current mineral resources, compliant with Canadian National Instrument 43-101, include an Indicated Resource of 1,539,000 ounces of gold equivalent (Au Eq) from 48,393,000 tonnes grading 0.92 g/t gold and 7.18 g/t silver, and an Inferred Resource of 411,000 ounces Au Eq from 16,760,000 tonnes grading 0.74 g/t gold and 3.25 g/t silver, all pit constrained.
The updated mineral resource estimate will be critical for refining the project's economics and advancing the Preliminary Economic Assessment (PEA). The company plans to update the Santa Fe PEA and drill test its satellite West Santa Fe project during 2025. These activities are aimed at de-risking the project and demonstrating its viability to investors and regulators.
The geotechnical drilling and waste rock characterization are essential steps in the permitting process, addressing environmental and engineering requirements. By advancing these studies, Lahontan is positioning itself to meet regulatory milestones efficiently. The exploration drilling program targeting multiple prospects could expand the resource base, potentially enhancing the project's scale and economics.
For the industry, this development underscores the ongoing interest in Nevada's Walker Lane district, a historically productive region for gold and silver. The Santa Fe project's past production and existing resources highlight its potential to become a significant mining operation. For investors, the company's fully funded status through 2027 reduces financing risk, while the upcoming resource update and drilling results could serve as catalysts for share price appreciation.
The technical content of this update has been reviewed by Michael Lindholm, CPG, an Independent Consulting Geologist and Qualified Person under NI 43-101. More information about Lahontan Gold Corp. is available on its website at www.lahontangoldcorp.com.
