Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has announced 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 grams per tonne (g/t) gold equivalent, including 1.64 g/t gold and 36.2 g/t silver. The stockpile, located adjacent to Heap Leach Pad Two, contains previously mined material that is being evaluated for potential future reprocessing, a strategy that could offer a lower-cost alternative to mining and processing fresh rock.
The company also reported that cyanide-soluble (CN-extractable) gold assays averaged 43% of the corresponding fire assay values, suggesting the material may be amenable to conventional heap leach processing. This is a key indicator for the economic viability of reprocessing the stockpile, as it implies that a significant portion of the gold can be recovered using existing infrastructure and methods.
These findings are particularly significant for Lahontan Gold as it seeks to advance the Santa Fe Mine project towards production. The company plans to update the Santa Fe Preliminary Economic Assessment (PEA) and drill test its satellite West Santa Fe project during 2025. The stockpile resource could potentially supplement feed for the heap leach operation, improving project economics and extending mine life.
The Santa Fe Mine project has a rich history, with past production of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open pit mines utilizing heap-leach processing. The project hosts a Canadian National Instrument 43-101 compliant Indicated Mineral Resource of 1,539,000 ounces gold equivalent (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. The resource estimate is detailed in the “Preliminary Economic Assessment, NI 43-101 Technical Report, Santa Fe Project” with an effective date of December 10, 2024, and report date of January 24, 2025, which is available on the company’s website and SEDAR+.
The potential reprocessing of the stockpile material aligns with the company’s strategy to optimize the Santa Fe project’s value by leveraging existing infrastructure and reducing environmental footprint. By processing material that has already been mined, the company can avoid the costs and permitting associated with new mining areas, potentially accelerating the path to production.
Michael Lindholm, CPG, Independent Consulting Geologist to Lahontan Gold Corp., who is a Qualified Person as defined in National Instrument 43-101, reviewed and approved the technical content of this news release and the company’s technical disclosure. Mr. Lindholm confirmed that the grade and ounces reported are consistent with the Technical Report.
Investors and stakeholders can access the full press release for more details at this link. For ongoing updates and information, the company’s newsroom is available at http://ibn.fm/LGCXF. More information about Lahontan Gold Corp. can be found on its website at www.lahontangoldcorp.com.
