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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
About Lahontan Gold Corp.
Lahontan Gold Corp. is a Canadian mine development and mineral exploration company that holds, through its US subsidiaries, four top-tier gold and silver exploration properties in the Walker Lane of mining friendly Nevada. Lahontan’s flagship property, the 26.4 km2 Santa Fe Mine project, 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 Santa Fe Mine 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 (Au Eq is inclusive of recovery, please see Santa Fe Project Technical Report and note below*). The Company plans to continue advancing the Santa Fe Mine project towards production, update the Santa Fe Preliminary Economic Assessment, and drill test its satellite West Santa Fe project during 2025. The technical content of this news release and the Company’s technical disclosure 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 — Standards of Disclosure for Mineral Projects. Mr. Lindholm was not an author for the Technical Report* and does not take responsibility for the resource calculation but can confirm that the grade and ounces in this press release are the same as those given in the Technical Report. For more information, please visit our website: www.lahontangoldcorp.com.
Please see the “Preliminary Economic Assessment, NI 43-101 Technical Report, Santa Fe Project”, Authors: Kenji Umeno, P. Eng., Thomas Dyer, PE, Kyle Murphy, PE, Trevor Rabb, P. Geo, Darcy Baker, PhD, P. Geo., and John M. Young, SME-RM; Effective Date: December 10, 2024, Report Date: January 24, 2025. The Technical Report is available on the Company’s website and SEDAR+. Mineral resources are reported using a cut-off grade of 0.15 g/t AuEq for oxide resources and 0.60 g/t AuEq for non-oxide resources. AuEq for the purpose of cut-off grade and reporting the Mineral Resources is based on the following assumptions gold price of US$1,950/oz gold, silver price of US$23.50/oz silver, and oxide gold recoveries ranging from 28% to 79%, oxide silver recoveries ranging from 8% to 30%, and non-oxide gold and silver recoveries of 71%.
NOTE TO INVESTORS: The latest news and updates relating to LGCXF are available in the company’s newsroom at http://ibn.fm/LGCXF
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