Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has released additional results from its 2026 Sonic core drilling program at the Santa Fe Mine Project in Nevada, revealing that nine drill holes in a historic low-grade stockpile averaged 1.96 g/t gold equivalent, including 1.64 g/t gold and 36.2 g/t silver. The stockpile, situated adjacent to Heap Leach Pad Two, contains previously mined material that the company is evaluating for potential reprocessing, a strategy that could significantly reduce costs compared to mining and processing fresh rock.
The significance of these results lies in the potential economic advantage of reprocessing the stockpile. According to the company, CN-extractable gold assays averaged 43% of corresponding fire assay values, suggesting that the material may be amenable to conventional heap leach processing. This could allow Lahontan to recover additional gold and silver from material that has already been mined, thereby extending the life of the Santa Fe operation with lower capital and operating expenditures.
The Santa Fe Mine project, which spans 26.4 square kilometers, has a rich history of production, having yielded 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 via open pit mining and heap-leach processing. The project currently hosts a National Instrument 43-101 compliant Indicated Mineral Resource of 1,539,000 ounces of gold equivalent (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 of gold equivalent (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.
Lahontan Gold's management has outlined plans to advance the Santa Fe project towards production, update the Preliminary Economic Assessment (PEA), and drill test its satellite West Santa Fe project during 2025. The company's strategic focus on reprocessing stockpiles could provide a near-term revenue stream while larger-scale development continues. This approach aligns with industry trends towards optimizing existing assets and reducing environmental footprints by re-processing waste materials.
The technical content of the announcement has been reviewed and approved by Michael Lindholm, CPG, an Independent Consulting Geologist to Lahontan Gold Corp., who is a Qualified Person under National Instrument 43-101. The company's commitment to rigorous technical oversight underscores the reliability of these results.
For investors and stakeholders in the mining sector, these developments are noteworthy as they highlight the potential for enhanced project economics at the Santa Fe Mine. The ability to process stockpiled material at a lower cost could improve the project's overall viability and attractiveness, especially in a fluctuating gold and silver price environment. As Lahontan continues to evaluate and potentially implement reprocessing, the outcomes could influence future production forecasts and the company's valuation.
Further details on the drilling results and the company's plans are available in the full press release at https://ibn.fm/F7hVP. For ongoing updates on Lahontan Gold's progress, interested parties can visit the company's website at www.lahontangoldcorp.com or access their newsroom at http://ibn.fm/LGCXF.
