Lahontan receives BLM OK for West Santa Fe drilling

Executive Summary

• Lahontan Gold Corp. received approval from the Bureau of Land Management (BLM) for its maiden drill program at the West Santa Fe project, located 13 km from its flagship Santa Fe mine in Nevada.
• The drilling program aims to validate historic drilling results and test extensions of the gold and silver mineralized system at West Santa Fe, with commencement expected in December.
• The company granted nine million stock options to directors, officers, and consultants at an exercise price of $0.15 per share.

Key Details

• BLM Approval: The BLM approved the Notice of Intent (NOI) for drill sites on unpatented lode mining claims on federal lands at West Santa Fe.
• Drilling Strategy: The program focuses on validating historic drilling and testing significant extensions to the known gold and silver mineralized system.
• Equipment Logistics: A drill rig is currently active at the Santa Fe mine project and will be moved to West Santa Fe upon completion of the current program.
• Geological Context: Historic drilling outlined a shallow, oxidized gold and silver system. Geologic work suggests mineralization extends several kilometers to the east along strike and downdip to the north.
• Timeline: The company expects the drilling program to commence in December.
• Option Grants:
  • Quantity: Aggregate of 9,000,000 options.
  • Recipient: Directors, officers, and consultants of the company.
  • Exercise Price: $0.15 per common share.
  • Term: Five years.
  • Hold Period: Four-month hold period from the original date of grant for shares issuable upon exercise.
• Santa Fe Project Context (Flagship Property):
  • Location: Walker Lane, Nevada.
  • Past Production: 359,202 oz gold and 702,067 oz silver (1988–1995).
  • Indicated Resource: 1,539,000 oz AuEq (48,393,000 tonnes grading 0.92 g/t Au and 7.18 g/t Ag, together 0.99 g/t AuEq).
  • Inferred Resource: 411,000 oz AuEq (16,760,000 tonnes grading 0.74 g/t Au and 3.25 g/t Ag, together 0.76 g/t AuEq).
  • Cut-off Grade: 0.15 g/t AuEq for oxide resources; 0.60 g/t AuEq for non-oxide resources.
  • Price Assumptions: Gold $1,950/oz; Silver $23.50/oz.
  • Recovery Assumptions: Oxide gold 28–79%; Oxide silver 8–30%; Non-oxide gold/silver 71%.

Notable Quotes

• "The company is excited to receive approval of the West Santa Fe NOI from the BLM. We appreciate the efficiency of the BLM in processing the permit. We can now focus on confirming the positive results from historic drilling at West Santa Fe, which outlined a very shallow, oxidized, gold and silver system. Our geologic work at West Santa Fe shows that the gold and silver mineralization identified by historic drilling extends for several kilometres to the east along strike as well as downdip to the north. The company expects the drilling program to commence in December." — Kimberly Ann, CEO, Executive Chair, and Founder