- Lahontan CEO outlined a timeline to return the Santa Fe mine to production, highlighting the company’s progress in drilling, permitting and resource expansion
- Nevada’s Walker Lane mining jurisdiction provides regulatory certainty and mining-friendly policies that benefit companies such as Lahontan
- The permitting process represents a critical milestone for Lahontan, with the company approaching the NEPA phase
With gold prices soaring and a clear path to production just three years away, Lahontan Gold (TSX.V: LG) (OTCQB: LGCXF) CEO Kimberly Ann is reporting that current economic models may be capturing less than half of the company’s true mineralization potential at its flagship Santa Fe mine. Lahontan Gold Corp. is a Canadian mineral exploration company strategically positioned in Nevada’s world-renowned Walker Lane, where the company is rapidly advancing four premier gold and silver properties toward commercial production.
In a recent Assay TV interview, Ann outlined an ambitious timeline to return the Santa Fe mine to production by 2027, highlighting the company’s progress in drilling, permitting and resource expansion (ibn.fm/uO90U). During the interview, Ann emphasized the compelling nature of Lahontan’s story, describing it as “a simple story for new shareholders to look at.”
The company currently boasts two million ounces at the Santa Fe property, which Ann noted is a past producer that Lahontan is working to bring back into production. The focus remains on oxide mineralization, which will be processed through open pit heap leach operations, a proven and cost-effective extraction method.
The CEO highlighted Nevada’s favorable Walker Lane mining jurisdiction, calling it “the best jurisdiction in the world,” which provides regulatory certainty and mining-friendly policies that benefit companies such as Lahontan. The company has been methodically advancing the project for nearly three years, with Ann stating the company has been “motoring away, drilling and adding more ounces, derisking the project and pushing it through the permitting phases.”
Recent drilling activities at the Santa Fe mine have generated significant interest, though results from the latest 1,750-meter program have not yet been released publicly. Ann explained that this focused program targeted three specific areas to “test how far we could extend the mineralization, how deep we can go.” The preliminary results are providing a lot of great insight, according to Ann, who indicated that a larger drilling program is planned for October based on the knowledge gained from this initial work.
The permitting process represents a critical milestone for Lahontan, with the company approaching the National Environmental Policy Act (“NEPA”) phase, which Ann described as “the final phase of the exploration plan of operations.” This development is particularly significant as it moves the company closer to submitting its complete mine plan of operations document. Ann emphasized the importance of this dual permitting approach, explaining that the company is pursuing both a plan of operation and a mine plan of operation simultaneously.
The exploration permit will allow Lahontan to “explore our entire land package without having to go back and doing notice of intents,” effectively providing unrestricted drilling access across their holdings. Ann described this as “sterilizing the entire land package for us to drill till the end of time.” The mine plan of operation will utilize the same footprint and baseline environmental studies, including what Ann colloquially referred to as “the bugs and bunnies” studies to ensure no protected species are impacted.
Financial modeling presents an increasingly attractive picture for Lahontan, particularly given the recent surge in precious metals prices. The company’s preliminary economic assessment (“PEA”) was completed in December using gold prices of $1,950 per ounce, but Ann noted that current market conditions mean Lahontan’s pit-constrained models likely don’t capture almost 50% of the mineralization that’s there. This suggests significant upside potential as the company prepares to release an updated resource estimate in Q1, followed by a revised PEA with current pricing assumptions.
Ann observed that the company maintains internal models that capture mineralization not reflected in public documents, stating, “seeing what we have internally, I think the public is going to be very excited to see those numbers.” The company’s cash costs are projected at $1,200 per ounce, which Ann characterized as “nothing compared to what gold and silver is” trading at current levels.
Expansion opportunities extend beyond the main Santa Fe operation, with drilling planned at West Santa Fe, located 13 kilometers from the main Santa Fe project. Ann described this as a future satellite operation, noting that the oxide mineralization “looks the same as what we have at Santa Fe property.” Additionally, the company is working to connect its four existing pits, potentially creating what Ann described as “one big super pit” by drilling between the Slab York area and adjacent deposits.
From a financial standpoint, Lahontan maintains a strong position following fundraising activities in April and May. Ann noted that the company deliberately limited dilution by not raising excessive capital, preferring to focus on organically growing through derisking the project, giving more confidence to the market. The company plans to raise additional funds when needed but is currently focused on advancing the project through its current resources.
Looking ahead, Ann outlined a robust news flow schedule extending through the end of the year and into Q1, encouraging investors to sign up for the company newsletter to keep up with what’s going on. The combination of drilling results, permitting progress, updated resource estimates and revised economic assessments positions Lahontan for significant catalysts in the coming months.
The company’s systematic approach to returning Santa Fe to production, combined with its strong jurisdictional advantages and expanding resource base, presents what Ann characterized as a “low-risk” opportunity in Nevada’s established mining environment. With gold and silver prices continuing to strengthen and the company’s timeline targeting production by 2027, Lahontan appears well-positioned to capitalize on favorable market conditions while advancing its flagship asset toward commercial operation.
For more information, visit the company’s website at www.LahontanGoldCorp.com.
NOTE TO INVESTORS: The latest news and updates relating to LGCXF are available in the company’s newsroom at ibn.fm/LGCXF
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