Lahontan Gold Corp. Advances Santa Fe Project with Metallurgical Testing
Lahontan Gold Corp. initiates metallurgical testing at Santa Fe to enhance gold and silver recoveries, aiming to improve project economics and advance towards production in Nevada's Walker Lane.
Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has embarked on a significant metallurgical testing program at its Santa Fe project, focusing on the mixed oxide-sulfide transition zone to boost cyanide leach gold recovery rates. This initiative follows a Preliminary Economic Assessment (PEA) that highlighted a modest 49% gold recovery in this domain, a figure the company is determined to exceed. The results of this testing, expected later this year, could markedly influence the project's economic viability and production forecasts.
CEO Kimberly Ann emphasized the importance of the transition zone, where a substantial portion of the minable gold ounces resides. The company is exploring new heap leaching methods that have shown promise in increasing recoveries from similar materials. Additionally, Lahontan is preparing for an expanded drilling campaign in 2025, aimed at resource growth and further project optimization, following the Bureau of Land Management's approval to access high-priority drill sites at Slab and York.
The Santa Fe project, with a historical production of approximately 359,000 ounces of gold and over 702,000 ounces of silver, is central to Lahontan's strategy. Current estimates suggest more than 1.5 million ounces gold equivalent in the indicated category, underscoring the potential impact of improved recoveries. The company's efforts are supported by previous metallurgical successes, including high gold recoveries in oxide zones, providing a solid foundation for the current transition zone testing.
Lahontan's comprehensive approach includes updating its PEA with new metallurgical data and drilling results, engaging experts for flow-sheet design and mine infrastructure enhancements. These steps are crucial for repositioning Santa Fe as a near-term producer in the prolific Walker Lane region, known for its significant gold production and diverse deposit types. With its four-property portfolio, Lahontan is poised to capitalize on the opportunities within this emerging mining area, reinforcing its vision of becoming a leading gold and silver producer in Nevada.