Lahontan Gold (TSX.V: LG) (OTCQB: LGCXF) announced positive results from a preliminary economic assessment (PEA) for its Santa Fe Mine gold-silver project in Nevada, outlining a post-tax net present value at a 5% discount rate of $820 million and an internal rate of return of 40.1%. Based on gold prices of $3,600 per ounce and silver prices of $49 per ounce, the assessment projects $3.68 billion in life-of-mine revenue and $1.32 billion in after-tax net cash flow over an 11-year active mine life, followed by one year of residual leaching.
Average annual production is estimated at approximately 91,900 gold-equivalent ounces, with initial capital costs of $172 million and a projected payback period of 3.7 years. At higher spot-price assumptions, the post-tax net present value increases to approximately $1.13 billion. The company said the updated assessment represents a more than fourteenfold increase in post-tax net present value compared with its 2024 PEA.
Lahontan plans to use the mine plan and production schedule to inform its final Mine Plan of Operations submission to the U.S. Bureau of Land Management and expects to secure federal and state construction permits in 2027. The company also identified potential opportunities for resource expansion through additional exploration and evaluation of historic heap leach pads. The PEA remains preliminary, includes Inferred Mineral Resources and does not establish economic viability or Mineral Reserves. To view the full press release, visit https://ibn.fm/QeKC5.
The Santa Fe Mine project, covering 26.4 km2, had 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 has a Canadian 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, together grading 0.99 g/t Au Eq) 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, together grading 0.76 g/t Au Eq), all pit constrained. For more information, visit www.lahontangoldcorp.com.
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