Lahontan Gold Announces Updated Santa Fe Preliminary Economic Assessment Featuring an Eleven-Year Mine Life and Post-Tax NPV5 of US$820 Million

Lahontan Gold Corp. released an updated Preliminary Economic Assessment (PEA) on October 14, 2026, for its Santa Fe Mine gold-silver project in Nevada's Walker Lane. The study was prepared by Kappes, Cassiday & Associates (KCA), with mine planning and resource work conducted by RESPEC.

Under a base case scenario assuming gold at US$3,600/oz and silver at US$49/oz, the PEA reports a post-tax NPV5 of US$820.0 million and a pre-tax NPV5 of US$1,060.8 million. The project yields a post-tax internal rate of return (IRR) of 40.1%, with a pre-tax IRR of 45.9%. Life-of-mine net cash flow is estimated at US$1.68 billion pre-tax and US$1.32 billion after-tax, against LOM revenue of US$3.68 billion.

The mine plan outlines 11 years of active production followed by one year of residual leaching. Pre-production capital is set at US$172.0 million, including US$22.2 million in contingency, with LOM sustaining capital of US$158.2 million and a payback period of 3.7 years. Average annual production is projected at approximately 91,900 AuEq oz, comprising roughly 88,300 oz of gold and 254,000 oz of silver. Production is expected to rise to approximately 112,500 AuEq oz during Years 4 through 11. Gold cash costs are estimated at US$1,909/oz, with all-in sustaining costs (AISC) at US$2,250/oz.

Sensitivity analysis shows a low case (US$3,000/oz Au, US$30/oz Ag) resulting in a post-tax NPV5 of US$476.2 million and an IRR of 27.3%. Under a spot case using prices from October 13, 2026 (US$4,166/oz Au, US$59/oz Ag), the post-tax NPV5 rises to US$1.13 billion with an IRR of 50.4%.

The study relies on pit-constrained resources inclusive of recovery. Indicated resources total 1,195,000 oz AuEq across 47.5 million tonnes grading 0.72 g/t Au and 5.55 g/t Ag. Inferred resources amount to 1,190,000 oz AuEq across 60.6 million tonnes grading 0.59 g/t Au and 2.40 g/t Ag. Cut-offs are set at 0.10 g/t AuEq for oxide and transition material, and 0.30 g/t AuEq for sulfide. Mining will utilize an open-pit method with a contractor fleet, while processing involves a conventional heap leach with an ADR plant and doré smelting, ramping from 4.6 million tonnes per annum (Mtpa) to 6.2 Mtpa.

CEO Kimberly Ann stated that the US$820 million post-tax NPV5 represents an increase of more than fourteen-fold compared to the 2024 PEA, which reported a US$56.5 million NPV5. Permits are expected in 2027, with the mine plan intended to feed a Mine Plan of Operations (MPOO) to the Bureau of Land Management (BLM).

The PEA is preliminary and includes Inferred Resources described as too speculative geologically to be classified as reserves. The company has defined no Mineral Reserves, and there is no certainty that the PEA will be realized. The disclosure contains internal inconsistencies: the Mineral Resource Estimate (MRE) is dated October 1, 2026, in one section and August 13, 2026, in another. Additionally, a bottom-footnote resource note cites a gold price of US$3,250/oz, while the body of the report cites US$3,200/oz.

Lahontan Gold Corp. (LG) released a Preliminary Economic Assessment (PEA) for its Santa Fe project that significantly exceeds prior expectations, despite the study being long-anticipated and originally guided for the second quarter before being pushed to September 2026. The assessment reports a net present value at a 5% discount rate (NPV5) of US$820 million, a substantial increase from the US$56.5 million reported in the 2024 PEA. The project demonstrates a 40.1% post-tax internal rate of return (IRR) and a 3.7-year payback period. Against a market capitalization of approximately CAD $159 million (roughly US$115–120 million), the US$820 million after-tax NPV in a first-pass study marks a notable economic milestone for the Santa Fe restart.

The economic uplift is heavily influenced by gold price assumptions. The base case utilizes a gold price of US$3,600 per ounce, compared to lower assumptions in the 2024 study. Under a low-case scenario of US$3,000 per ounce, the NPV5 drops to US$476 million, indicating that the project’s economics are highly levered to metal prices.

Resource quality also presents a caveat to the headline growth figures. While the company reported a 22% increase in resources in August 2026, this shift moved ounces from the higher-confidence Indicated category to Inferred. The Indicated resource decreased from 1,539,000 ounces in the prior Mineral Resource Estimate (MRE) to 1,195,000 ounces, while Inferred resources increased to 1,190,000 ounces. A PEA relying on Inferred material carries inherently lower confidence.

Recovery assumptions vary across domains and are modest in several areas. Gold recoveries are estimated at 52% for Slab oxide, 60% for York oxide, and 45–49% for transitional material. Silver recoveries range from 0% to 30%, with 0% recovery at some deposits. These factors contribute to thin margins between the all-in sustaining cost (AISC) of US$2,250 per ounce and the base-case gold price.

Capital requirements present a significant funding challenge. Pre-production capital expenditure is estimated at US$172 million, with an additional US$158 million in sustaining capital. This total dwarfs the company’s current cash balance of approximately US$12 million, implying a need for significant future funding through equity, debt, streaming, or joint venture arrangements.

The historical news arc for Lahontan Gold Corp. involves a junior miner methodically advancing drilling, resource growth, metallurgy, and permitting toward a 2027 construction target. This PEA represents a de-risking milestone in that process, though it does not yet constitute a bankable feasibility study. Market reaction will likely depend on investor confidence in the price deck and the path to securing permits and financing.

Lahontan Gold Corp. (TSXV:LG, OTCQB:LGCXF, FSE:Y2F) is a Nevada-focused mine development company advancing a portfolio of four gold-silver properties in the Walker Lane. Its flagship is the 28.3 km² Santa Fe Mine project, a past-producing open-pit, heap-leach gold-silver operation that produced 359,202 oz Au and 702,067 oz Ag between 1988 and 1995, according to the release.

The company’s deposits include Santa Fe, Slab, Calvada Central, Calvada East, York, and the satellite West Santa Fe, located 13 km away. The strategy involves a brownfields restart leveraging existing infrastructure, targeting a return to production in 2027.

Key personnel include Kimberly Ann, who serves as Founder, Executive Chair, CEO, and President, and Brian J. Maher, SVP of Mine Development & Exploration, who acts as the internal qualified person for most technical disclosure. Independent qualified persons include Caleb Cook, P.E. (KCA), and Thomas Dyer, P.E. and Michael S. Lindholm, C.P.G. (RESPEC).