Technical Study
Lahontan Reports Cyanide Recoveries of 81% for Gold and 60% for Silver at West Santa Fe
Lahontan Gold Metallurgy Beats Historic Estimates, Validating $13M Capital Raise
Executive Summary
- On April 13, 2026, Lahontan Gold reported cyanide (CN) recoveries of 81% for gold and 60% for silver from 158 pulp samples taken during its 2025 reverse-circulation drilling program at West Santa Fe.
- These results exceed the historic 1982 Kappes Cassiday report projections of 70% gold and 50% silver heap-leach recoveries.
- The company confirms the mineralization is amenable to cyanide heap leaching, which supports lower processing costs and improved project economics for the upcoming Preliminary Economic Assessment (PEA).
- This announcement follows closely on the heels of a $13.6M CAD private placement closed on April 8, 2026, intended to fund exploration and development through 2027.
Material Impact
- Positive Technical Validation: The increase in gold recovery from an expected 70% to 81% is a material improvement for heap-leach economics, directly impacting Net Present Value (NPV) and Internal Rate of Return (IRR). Higher recoveries mean more ounces sold per tonne mined.
- Confirmation of Strategy: This news validates the capital allocation decision made in the April 8 financing. Investors who bought at $0.41/unit now have confirmation that the funded exploration is yielding technically superior results than historic baselines.
- Silver Recovery Concern: While gold recovery exceeded expectations, silver recovery (60%) only modestly beat the historic 50% projection. Given the significant silver content in the resource, this remains a variable to watch for final PEA economics.
- Market Reaction Context: Despite the positive technical data, the stock is trading at $0.36 CAD, below the recent private placement price of $0.41 CAD. This suggests the market may be pricing in dilution concerns or broader sector weakness rather than dismissing the technical news.
LG · Price
Company Overview
- Company: Lahontan Gold Corp. is a Nevada-focused gold and silver exploration and development company.
- Flagship Project: Santa Fe Mine (Past Producer). Historic production from 1988-1995 included 359,202 oz Au and 702,067 oz Ag via open-pit heap-leach operations.
- Current Resources: NI 43-101 compliant Indicated Resource of 1,539,000 oz Au Eq and Inferred Resource of 411,000 oz Au Eq (as per Feb 2026 news).
- Satellite Projects: West Santa Fe (13 km SW), Moho Mine. Recent drilling at West Santa Fe has confirmed high-grade oxide mineralization suitable for heap leaching.
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Jun 30, 2026 · 07:00