The Historic Deposit
Anyone navigating the universe of smaller gold stocks will encounter a familiar pattern: promising geology, followed by a long and uncertain path through technical studies, financing rounds, and regulatory approvals. For a company in western Nevada, the situation is different. Very different.
Lahontan Gold’s Santa Fe project is a former producing mine. Between 1988 and 1994, Corona Gold produced approximately 359,000 ounces of gold and 702,000 ounces of silver from the property, despite a gold price that averaged only around USD 340 per ounce. The fact that the project was profitable under such market conditions highlights the quality of the deposit.
Funds in Place, Clear Timeline
The coffers are full. A private placement completed in April raised CAD 13.6 million. In addition, ongoing warrant exercises are providing additional inflows. As a result, the Company appears funded through 2027, reducing near-term financing pressure and potential dilution risk.
Technical work is proceeding on multiple fronts simultaneously. A geotechnical drilling campaign totalling 2,569 m in 11 holes, including both diamond core and reverse circulation (RC) drilling, has been completed. The program had two primary objectives. First, to assess groundwater conditions. Only a single drill hole showed minor groundwater flow, while all other locations remained dry. Piezometers have been installed to provide final confirmation data. Second, to characterize the waste rock material. Samples from drill core and RC cuttings have been submitted for laboratory analysis. Results are expected in the coming weeks.
Mineral Resource and Economic Viability
An updated mineral resource estimate is imminent. The external consultants from RESPEC in Reno have largely completed the geological and metallurgical aspects. As soon as the new resource is available, the team will focus on revising the Preliminary Economic Assessment (PEA). Its publication is targeted for September.
The first model calculation from last year showed a payback period of 18 months at a gold price of USD 4,000. The new model calculations range from approximately 9 to 14 months. Management knows that the faster the payback, the more favourable the terms. A commodity or licensing deal is not planned. The goal is 80% debt financing, and according to management, there are already parties interested in providing financing.
Exploration on Two Fronts
With geotechnical drilling complete, the RC drill is now available for large-scale step-out drilling. Up to 7,000 m is planned across several targets: Slab West, South Slab, Guzzler, and the EM targets. Some holes have already been drilled, and results are expected in the coming weeks.
In parallel, a sonic core drill is operating across the four historic heap leach pads. Here, 1,700 m will be drilled across 96 holes. The drilling density is high enough to derive a mineral resource from it. The material is already stockpiled in crushed form. This means no additional hauling or crushing costs. Estimates suggest approximately 200,000 ounces of residual gold and 700,000 to 800,000 ounces of silver. This would essentially be a free byproduct that would only need to be run through the leach pads once more.
West Santa Fe is Moving Forward
The West Santa Fe satellite project, just 13 km away, is also making progress. Based on the success of the initial drilling, the Company has begun, in consultation with the Federal Bureau of Land Management, to conduct baseline environmental and cultural studies across the entire project area. Once these are completed, they will pave the way for expanded exploration drilling and subsequent mine development. Starting such baseline studies early saves months of permitting time later on.
The Company’s first drill holes at West Santa Fe yielded results that exceeded historical data. Reported intercepts include 3 g/t gold over 40 m and 6 g/t gold over 11 m, as well as silver grades reaching 648 g/t. Recent leaching tests achieved 81% gold recovery and 60% silver recovery rates. This is a significant improvement over the historical rates of 70% and 50%, respectively.
The Big Consolidation Question
Nevada is a competitive market. Larger corporations with a presence in the state are always interested in explored deposits. Lahontan Gold’s management has clearly signalled that it does not want to become a takeover target. The process of building a team for mine operations is already underway. CEO Kimberly Ann speaks openly about the ambition to develop the project for the long term.
The Share Structure
According to management, approximately 41% of the shareholder base consists of larger or institutional investors, primarily from Europe and the US. A move to the New York Stock Exchange is planned for the production year.
The share is currently trading at around CAD 0.405. If the mine proceeds as planned, we will most likely see very different prices then.
The coming months are packed with catalysts, including an updated resource estimate, the PEA in September, and the expected construction permit for Q1 2027. The fact that a project of this size in Nevada, with existing infrastructure and a payback period of less than 2 years, is so undervalued is unlikely to last forever. Those who get in now are buying a stake in a mine developer that is closer to production than the valuation suggests. The direction is right, and patience is likely to be rewarded.
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.
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