Lahontan Gold Corp. has announced results from its 2025 Phase One drilling program at the Santa Fe Mine Project in Nevada, completing seven reverse-circulation drill holes totaling 1,210 meters. The drilling yielded significant results, including 89.9 meters grading 0.23 g/t Au and 18.3 meters grading 0.73 g/t Au at the York zone, with mineralization remaining open along strike and down-dip. Additional drilling at the Slab zone confirmed a new target for resource expansion, intersecting 39.6 meters grading 0.30 g/t Au. These results validate Lahontan's geologic model and expand oxide gold zones, underscoring the growth potential of the recently acquired York claims.
The company has planned additional drilling at both York and Slab zones for later this year. The Santa Fe Mine project represents a significant asset for Lahontan Gold, with historical production of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995. The project currently holds a Canadian National Instrument 43-101 compliant Indicated Mineral Resource of 1,539,000 oz Au Eq and an Inferred Mineral Resource of 411,000 oz Au Eq, all pit constrained. For detailed technical information, investors can review the full press release.
The technical content of the news release has been reviewed and approved by Michael Lindholm, CPG, Independent Consulting Geologist to Lahontan Gold Corp., who is a Qualified Person as defined in National Instrument 43-101. The company plans to continue advancing the Santa Fe Mine project towards production and update the Santa Fe Preliminary Economic Assessment during 2025. These drilling results are particularly significant as they demonstrate the continued potential for resource expansion at a project with established historical production and existing mineral resources.
The confirmation of new targets like the Slab zone indicates that the property may contain additional mineralization beyond currently defined resources, potentially enhancing the project's economic viability and long-term development prospects. The expansion of oxide gold zones is crucial because oxide mineralization typically requires less complex and more cost-effective processing methods compared to sulfide ores, which could improve project economics. The fact that mineralization remains open along strike and down-dip at the York zone suggests there is substantial potential for further resource growth through additional drilling.
For a mining company like Lahontan Gold, demonstrating resource expansion potential is critical for attracting investment and advancing projects toward production. The Santa Fe Mine project's historical production provides confidence in the geological setting, while the current drilling results suggest there may be more mineralization to be discovered. The planned 2025 Preliminary Economic Assessment update will be important for evaluating the economic implications of these new drilling results and determining the optimal path forward for development.
