The Starting Point: A Project with History
The Santa Fe Mine is no newcomer. Between 1988 and 1995, Corona Gold produced approximately 359,000 ounces of gold and 702,000 ounces of silver here. At that time, the price of gold was just USD 340 per ounce. The fact that the project was even profitable back then speaks to the quality of the deposit. When Lahontan Gold acquired the asset from Victoria Gold a few years ago, the infrastructure was idle but still in place. The property features 3 water wells, a substation, and 4 old heap leach pads with pre-crushed material.
Operational Acceleration
Recent progress has been remarkable. The company is well-capitalized following a CAD 13.6 million placement in April and several early warrant exercises. Drilling activity has increased significantly. Three drilling rigs are currently in operation: an RC rig for exploration drilling, a core drill for geotechnical purposes, and a sonic drilling rig on the old tailings piles. The results, which were released in June, reveal two exciting lines of development.
A drill hole in the Calvada area intersected 90.8 m of oxidized material averaging 0.44 g/t gold equivalent (AuEq), located below the current pit boundary. The mineralization continues where no one had previously expected it to. In particular, a 12.3 m sub-interval grading 1.22 g/t AuEq indicates high-grade potential. The Calvada mineralization is oxidized, making it ideal for the planned heap leaching operation.
The Discovery of Slab West
The second story takes place west of the existing Slab open pit. Five RC drill holes totaling 1,530 m in length were intended to provide insight into the potential of this area. In the process, 4 out of 5 drill holes intersected previously unmapped gold mineralization. The company refers to the discovery as “Slab West.”
At first glance, the gold-equivalent grades—0.34 g/t over 35 m and 0.26 g/t over 61 m—may seem unspectacular. CEO Kimberly Ann commented: “The ‘Slab West’ zone is characterized by its large extent, good quality, and continuity.” Furthermore, the zone is open in all directions and is located in an area that was virtually ignored by previous operators.
For a project of this magnitude, these are exactly the kinds of results that can change the big picture. Not spectacular individual values, but consistent mineralization over large areas. That is the foundation for economically mineable resources.
The Second Layer: West Santa Fe
In parallel, Lahontan Gold owns the West Santa Fe project, located just 13 km from its flagship mine. The company’s initial drilling program confirmed historical data from 171 legacy drill holes, delivering results that compare favourably with industry standards. Intercepts included 3 g/t gold over 40 m, along with silver grades of up to 648 g/t.
Due to its proximity to the main project, the ore can be transported by truck via the existing plant access road to the processing facility. As a result, no significant additional infrastructure would be required for mining operations. Permitting procedures are already underway and are expected to take approximately two years. While approval is by no means guaranteed, the process demonstrates that management is not only focused on drilling success but is also committed to navigating the lengthy and often complex permitting process required to advance the project toward production.
The Economic Outlook
This is where the key difference from many competitors becomes clear. Lahontan Gold does not intend to conduct a feasibility study in the traditional sense. The updated PEA expected in September serves a clearly defined purpose: to demonstrate the shortest possible payback period.
The initial model calculation from last year showed a payback period of 1.8 years at a gold price of USD 1,950. The optimized new calculations for the September update are expected to range between 9 and 14 months.
This is no coincidence—it is a strategy. CEO Kimberly Ann has a background in debt financing and knows exactly what lenders look for. The faster the repayment, the more favourable the financing terms. A raw materials or licensing deal—the kind many developers are forced to enter into—is not planned. Management is currently negotiating with a strategic investor to cover construction costs.
Operating costs are estimated at USD 1,000–1,100 per ounce, making them extremely competitive. In addition, Nevada is considered one of the safest mining jurisdictions in the world. Furthermore, CEO Kimberly Ann stated in an interview that, due to the company’s Canadian corporate structure and historical tax positions, it holds approximately CAD 30 million in tax benefits that will become available once production begins.
The Next Milestones
The coming months will be crucial. The updated mineral resource estimate is expected in the coming weeks. It will form the basis for all further steps. The updated PEA will follow in September. The company aims to obtain the final operating permit by the first quarter of 2027, with construction estimated to take 4–6 months.
If everything goes according to plan, the first gold could be poured as early as the third or fourth quarter of 2027. That would be a remarkably short timeframe for a project of this magnitude.
The share is currently trading at around CAD 0.36.
Lahontan Gold is at a pivotal point in its corporate development: the transition from exploration to production. The combination of a historic project with intact infrastructure, pragmatic leadership, clear milestones, and a short timeframe to potential production sets it apart from typical exploration stories. The latest drill results from Calvada and Slab West confirm that the potential is greater than previously assumed. This is compounded by the fact that the project is located in a region considered one of the safest mining regions in the world. For investors willing to get involved early during the development phase, this presents an opportunity with a clear roadmap and a realistic timeline.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as “Relevant Persons”) currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a “Transaction”). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
In this respect, there is a concrete conflict of interest in the reporting on the companies.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is also a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
