Lahontan Gold Corp. (TSX-V: LG)(OTCQB: LGCXF) is exploring the Santa Fe deposit in Mineral County, Nevada. The asset is a past producing open pit mine, and LG has been working to bring back to commercial production. Since 2021 LG has been working towards getting a Maiden Resource Estimate (MRE) published, showing the potential commercial viability of the Santa Fe project. Today, LG announced the fruits of their labour with a Maiden Resource Estimate an indicated 1,112,000 ounces and an inferred 544,000 ounces of gold equivalent resources in the ground. The MRE for Santa Fe is based upon 1,275 drill holes totaling 125,435 meters, including 50 drill holes totaling 13,118 meters drilled by Lahontan since 2021.
Kimberly Ann, Founder, CEO, and President of Lahontan Gold Corp commented: "Lahontan is thrilled with the results of this MRE for the Santa Fe Mine, validating our business concept focusing on brownfield exploration and development opportunities. The MRE demonstrates the presence of a large, readily exploitable, oxide gold resource and importantly, higher-grade non-oxide gold resources. Shallow, good grade oxide gold mineralization in the high-wall of the Santa Fe pit and outcropping oxide resources in Slab-Calvada-York complex, give the Company a clear option for rapid mine development at a significant production rate. We intend to take advantage of the technical and metallurgical data generated over six years of historical mining and heap-leach processing to quickly evaluate the economic potential of the oxide portion of the mineral resource. All deposits comprising the Santa Fe Mine remain open for resource expansion and we look forward to continued drilling at Santa Fe as we grow and expand the size and scale of the project".
Lahontan's flagship property, the 18 km2 Santa Fe Project, is a past producing gold and silver mine with excellent potential to host significant gold and silver resources (past production of 345,000 ounces of gold and 710,000 ounces of silver between 1988 and 1992; Nevada Bureau of Mines and Geology, 1996). Modeling of over 110,000 meters of historic drilling, geologic mapping, and geochemical sampling outline both shallow, oxidized gold and silver mineralization as well as deeper high grade potential resources.
As one can expect, assuming the information didn’t leak out, the reaction on the stock was favorable. But with a stock trading at $0.065 before the news, 93.46M shares out and a market cap of about $6M – the reaction has been strong. In the first two hours of trading on January 17, 2023 after the announcement, LG jumped as much as 76% to $0.115 on 10x average volume. In addition to trading on the Toronto Venture Exchange under the symbol, LG, Lahontan also trades on the OTCQB Venture Market under the symbol LGCXF. Lahonton clearly has the desire to broaden its US retail and institutional investor shareholder base.