Lahontan Gold Company (LG-TSXV, LGCXF(OTCQB, Y2F-FSE) has issued an update on mine development and exploration activities at its flagship Santa Fe Mine project in the Walker Lane area of Nevada.
The company said the preparation of an updated Mineral Resource Estimate (MRE) for Santa Fe is nearly complete, a critical step in developing an open pit mine plan to resume gold and silver production from the project. Through the MRE update, the company will also complete a revised Preliminary Economic Assessment (PEA), which is expected to include a detailed description of key mine infrastructure, including heap leach pads, open pits and waste rock storage sites. With the PEA in hand, the company said it will be able to submit a mining operations plan to the federal Bureau of Land Management.
Lahontan shares were unchanged at 34 cents Tuesday and are trading in a 52-week range of 52 cents and $0.095.
Lahontan is a Canadian mining development and mineral exploration company that, through its U.S. subsidiaries, owns four gold and silver exploration properties in the Walker Lane area of Nevada. The flagship Santa Fe mine project, with an area of 28.3 square kilometres, had previously produced 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open pit mines using heap processing.
The Santa Fe Mine has a National Instrument 43-101 compliant indicated resource of 1.54 million ounces of gold equivalent (AuEq) (48.4 million tons grading 0.92 g/t gold and 7.18 g/t silver, grading 0.99 g/t AuEq) and an inferred resource of 411,000 ounces AuEq (16.7 million tons grading 0.74 g/t gold and 3.25 g/t silver, grading 0.76 g/t AuEq), all restricted to pits.
“The pace of activity at Santa Fe continues to accelerate: we are developing permitting activities, making new gold and silver discoveries, while evaluating the economic potential for reprocessing historic leach pads, and potentially producing very large, low-cost recoverable ounces,” said Kimberly Ann, President and CEO of Lahontan Gold. “Lahontan has completed 87 drill holes totaling 7,751 meters so far in 2026, and there are more to come.” He said. “We remain on track to make progress in 2027.”
Anne said the Santa Fe mine is a classic brownfield restart, leveraging existing infrastructure and technical know-how allowing the company to restart production at a lower capital cost, on a shorter development timeline, and with much lower execution risk than a similar new project.
Despite the delay caused by a shortage of qualified technical consultants in the region, the company said it expects to complete the project implementation by the end of August. At the same time, the company announced the results of five drill holes, including the discovery of a new, previously unrecognized mineralization zone west of the Slab Resource (Slab West).
The major intersections include 35 meters grading 0.34 g/t gold equivalent (AuEq) and 61 meters grading 0.26 g/t gold equivalent (AuEq).
