Lahontan Gold Corp. Advances Santa Fe Mine Toward 2027 Restart, Leveraging Past Production Success
Lahontan Gold Corp. is fast-tracking the restart of its Santa Fe Mine in Nevada, which previously produced over 359,000 ounces of gold, capitalizing on higher gold prices and existing infrastructure to potentially revive profitable operations by early 2027.
Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) is advancing its Santa Fe Mine project toward a planned restart, leveraging the asset's proven production history rather than theoretical potential. The mine operated successfully from 1988 to 1995, producing 359,202 ounces of gold and 702,067 ounces of silver through open-pit mining and heap leach processing, the lowest-cost production method for oxide gold deposits.
The mine's closure in 1995 resulted purely from economics, as gold prices at $340 per ounce made operations uneconomical. However, the cessation of mining left substantial mineralization in the ground, creating the foundation for Lahontan's current development strategy. The company controls an asset with demonstrated production capabilities, providing a competitive advantage in the current market environment where gold prices are significantly higher.
According to CEO Kimberly Ann, the company is fast-tracking the restart process. "We have enough to have mine again now and we're fast tracking it," Ann stated in a recent interview. "We started this process about two and a half years ago because we all know permitting takes a long time. We need to do it responsibly. We're now deep in the weeds of it and we'll be breaking ground in early 2027, if not sooner."
The Santa Fe Mine project holds substantial mineral resources, with a Canadian National Instrument 43-101 compliant Indicated Mineral Resource of 1,539,000 oz Au Eq and an Inferred Mineral Resource of 411,000 oz Au Eq, all pit constrained. The company plans to continue advancing the Santa Fe Mine project toward production, update the Santa Fe Preliminary Economic Assessment, and drill test its satellite West Santa Fe project during 2025.
For more technical details, investors can review the company's website which hosts the complete Preliminary Economic Assessment technical report. The project's advancement represents a significant development in the mining sector, demonstrating how historical mining operations can be revitalized under improved economic conditions using modern techniques and higher commodity prices.