Lahontan Gold Corp. (TSXV:LG)(OTCQB:LGCXF)(the “Firm” or “Lahontan“) is happy to announce outcomes from a constructive Preliminary Financial Evaluation(” PEA”) on its flagship Santa Fe Mine gold-silver venture situated in Nevada’s prolific Walker Lane Development. The PEA was ready by Kappes, Cassiday & Associates (“KCA”) of Reno, Nevada with mine planning and manufacturing scheduling contributions from RESPEC Firm LLC (“Respec”), Reno, Nevada and mineral useful resource estimation by Fairness Exploration Consultants Ltd. (“Fairness”), of Vancouver, British Columbia, in accordance with Canadian Nationwide Instrument 43-101, Requirements of Disclosure for Mineral Initiatives (“NI 43-101”).
PEA Highlights:
- Pre-tax Web Current Worth at a 5% low cost fee (“NPV5”) of US$265.1 M with a 41.0% IRRwith an After-tax NPV5 of US$200.0 M with a 34.2% IRR using a $2,705/oz gold worth and a $32.60/oz silver worth (“spot metallic costs”) (see spot metallic worth to base case metallic worth comparability in Desk 1).
- Whole Life-of-Mine (“LOM”) Pre-tax web money movement of US$373.3 M and After-tax web money movement of US$288.9 M over a nine-year venture life utilizing spot metallic costs.
- Whole projected LOM income of US$930.8 M over a nine-year venture life utilizing spot metallic costs.
- LOM strip ratio of just one.54 (waste to mineralized materials ratio).
- Estimated pre-production capital prices of US$135.1 M together with a 20% contingency, with a payback of two.9 years utilizing spot metallic costs.
Kimberly Ann, Lahontan Gold Corp Government Chair, CEO, President, and Founder commented: “Lahontan may be very excited concerning the outcomes of the PEA: a low-capex, extremely worthwhile mining venture with a fast payback definitely bodes effectively for the way forward for Lahontan and all stakeholders. There may be appreciable potential to increase gold and silver sources, due to this fact that is simply step one in restarting mining operations at Santa Fe. With mine allowing effectively under-way, concentrating on a 2026 mine ground-breaking, the potential for the Firm to understand the financial outcomes outlined within the PEA may be very actual, particularly given present traits in gold and silver costs. Continued optimization of the mine plan, useful resource growth drilling, and refining the metallurgical movement sheet are deliberate for 2025, in parallel with our allowing actions.”
The PEA is preliminary in nature, contains Inferred Mineral Sources which can be thought-about too speculative geologically to have the financial issues utilized to them that will allow them to be categorized as Mineral Reserves, and there’s no certainty that the PEA will probably be realized. Mineral Sources that aren’t Mineral Reserves do not need demonstrated financial viability. The Firm has not outlined any Mineral Reserves on the Santa Fe Mine venture.
Financial Sensitivities
Sensitivity of the venture economics to metals costs is proven in Desk 1, exhibiting the bottom case metallic costs used for the PEA, in addition to a low case, a excessive case and the spot case.
Desk 1: Santa Fe Venture 2024 PEA Economics
|
Low Case |
Base Case |
Excessive Case |
Spot Case (1) |
|
|
Gold Worth (US$/oz) |
1,800 |
2,025 |
2,200 |
2,705 |
|
Silver Worth (US$/oz) |
21.50 |
24.20 |
26.3 |
32.60 |
|
Web Income (US$) |
618.6 M |
696.2 M |
756.5 M |
930.8 M |
|
Pre-Tax NCF(2) (US$) |
65.0 M |
141.6 M |
201.2 M |
373.3 M |
|
Pre-Tax NPV5(3) (US$) |
21.7 M |
82.2 M |
129.2 M |
265.1 M |
|
Pre-Tax IRR(4) |
8.5% |
17.4% |
23.9% |
41.0% |
|
After-Tax NCF(2) (US$) |
47.8 M |
107.7 M |
154.1 M |
288.9 M |
|
After-Tax NPV5(3) (US$) |
8.7 M |
56.5 M |
93.3 M |
200.0 M |
|
After-Tax IRR(4) |
6.4% |
14.0% |
19.5% |
34.2% |
|
Payback Interval(5) (years) |
5.1 |
4.2 |
3.8 |
2.9 |
(1) As of December 10, 2024
(2) NCF means web money movement
(3) NPV5 refers to web current worth at 5% low cost fee
(4) IRR means inner fee of return
(5) Pre-production capital, excluding sustaining capital
Capital Prices
Capital prices for the venture are summarized in Desk 2. Capital prices related to the mining operation have been estimated by RESPEC and based mostly on mining by contractor. Pre-stripping prices have been based mostly on the working prices mentioned under. Capital prices related to processing reminiscent of crushing, heap leaching and metallic restoration, together with help and infrastructure prices related to laboratory, water and energy distribution and common website companies have been estimated by KCA. Reclamation and closure prices of $12.5 M have been estimated by KCA.
Desk 2: Venture Capital Prices
|
Pre-Manufacturing (US$ M) |
LOM Sustaining (US$ M) |
|
|
Mining |
2.5 |
0.8 |
|
Processing, Assist & Infrastructure |
116.0 |
17.0 |
|
Proprietor’s Prices |
5.3 |
0.0 |
|
Preliminary Fills |
0.5 |
0.0 |
|
Working Capital(1) |
10.7 |
0.0 |
|
TOTAL(2) |
135.1 |
17.8 |
- Working capital is credited in 12 months 9
- Values are rounded and will not sum completely
Working Prices
Working prices for the venture are summarized in Desk 3. Mining working prices have been estimated by RESPEC and based mostly on estimated anticipated tools hours and personnel necessities at a 25% markup for contractor charges. The off-road red-dye diesel gasoline worth on this estimate was assumed to be $0.74/L. All different working prices have been estimated by KCA and based mostly on first ideas on sure parts the place attainable, reminiscent of reagent and energy consumption, together with benchmarking with related operations for different parts, reminiscent of labor, upkeep and discretionary bills
Desk 3: Venture Working Prices
|
LOM Whole (US$ M) |
Per Tonne Processed ($/t) |
|
|
Mining |
204.2 |
7.36 |
|
Processing |
138.7 |
5.00 |
|
Assist & Infrastructure |
17.3 |
0.62 |
|
G&A |
35.8 |
1.29 |
|
TOTAL(1) |
402.5 |
14.28 |
(1) Values are rounded and will not sum completely
Mine Manufacturing Schedule
The PEA mine manufacturing schedule contains mining of leach materials and waste for the Santa Fe, Calvada, Slab, and York deposits. Leach materials was assumed to be despatched to a centralized crushing plant after which stacked on a leach pad and the waste materials was despatched to designed waste rock storage amenities (WRSF) or used as partial backfill into the Calvada pit.
As a result of the Santa Fe Mine is a brown-field venture, minimal pre-stripping is required to develop enough stockpiles to feed the crusher. The mine manufacturing schedule requires 2 months of preproduction which begins within the Santa Fe deposit. The Calvada deposit is began in yr 2 and mined concurrently with Santa Fe. Calvada mining is adopted by mining of Slab and York deposits.
The method schedule was developed with a ramp up of manufacturing from yr 1 by yr 3 to a full 4.56 million tonnes per yr. Desk 4 exhibits the method manufacturing schedule.
Desk 4: Projected Manufacturing Abstract
|
12 months |
Tonnes Processed (kt) |
Gold Grade (g/t) |
Silver Grade (g/t) |
Gold Produced (koz) |
Silver Produced (koz) |
Gold Equal Produced(1) (koz) |
|
1 |
3,468 |
0.47 |
4.1 |
30.3 |
88.1 |
31.4 |
|
2 |
4,517 |
0.58 |
4.6 |
51.4 |
168.9 |
53.4 |
|
3 |
4,563 |
0.66 |
3.7 |
60.2 |
155.7 |
62.0 |
|
4 |
4,563 |
0.70 |
3.0 |
60.5 |
124.2 |
62.0 |
|
5 |
4,563 |
0.73 |
2.5 |
62.0 |
93.5 |
63.1 |
|
6 |
4,563 |
0.61 |
2.2 |
49.9 |
56.9 |
50.5 |
|
7 |
1,497 |
0.58 |
2.1 |
20.1 |
23.1 |
20.4 |
|
8(2) |
0 |
2.3 |
4.2 |
2.3 |
||
|
TOTAL(3) |
27,731 |
0.63 |
3.3 |
336.7 |
714.7 |
345.2 |
- Equal gold calculation relies on base case metallic costs
- Residual leaching manufacturing solely
- Values are rounded and will not sum completely
Desk 5 exhibits the important thing manufacturing parameters for the mine and processing items used within the technology of the manufacturing and money movement profiles.
Desk 5: Key Mining and Processing Manufacturing Parameters
|
LOM |
|
|
Mining |
|
|
Whole Waste Tonnes Mined (Mt) |
42.9 |
|
Whole Processed Tonnes Mined (Mt) |
27.7 |
|
Whole Tonnes Mined (Mt) |
70.6 |
|
Heap Restoration – Gold |
|
|
Santa Fe Oxide |
71% |
|
Santa Fe Transition |
49% |
|
Calvada Oxide |
71% |
|
Calvada Transition |
45% |
|
Slab Oxide |
50% |
|
York Oxide |
60% |
|
York Transition |
45% |
|
Heap Restoration – Silver |
|
|
Santa Fe Oxide |
30% |
|
Santa Fe Transition |
30% |
|
Calvada Oxide |
13% |
|
Calvada Transition |
0% |
|
Slab Oxide |
12% |
|
York Oxide |
0% |
|
York Transition |
0% |
Mining and Processing
The mineralized materials will probably be mined by commonplace open-pit mining strategies utilizing a contractor-owned and operated mining fleet consisting of 92-tonne haul vans and 11.5-m3 loading items and transported to the crushing circuit for processing.
Mineralized materials from the Santa Fe, Calvada, Slab and York deposits will probably be processed by typical heap leaching strategies. The nominal processing fee will probably be 4.6 million tonnes each year or 12,500 tonnes per day. Three-stage crushing of the fabric to 12.7 mm, will probably be adopted by conveyor stacking on to a multi-lift heap leach pad. Dilute sodium cyanide answer will probably be utilized to the heap, with the pregnant gold and silver-bearing answer effluent from the heap being processed in a carbon adsorption-desorption-recovery (ADR) plant. Gold and silver will probably be produced within the type of doré bars from the on-site smelting course of.
Mineral Useful resource Estimation
The mineral useful resource estimate (“MRE”) was ready in accordance with the CIM Definition Requirements and Canadian Nationwide Instrument NI-43-101. The efficient date of the MRE ready by Fairness is October 9, 2024. The MRE is proven in Desk 6.
Desk 6: Venture-wide Sources, Santa Fe Mine, Mineral County, Nevada
Notes to Desk 6:
- Mineral Sources have an efficient date of October 9, 2024. The Mineral Useful resource Estimate for the Santa Fe Mine was ready by Trevor Rabb, P.Geo., of Fairness Exploration Consultants Ltd., an impartial Certified Particular person as outlined by NI 43-101.
- Mineral Sources aren’t Mineral Reserves and do not need demonstrated financial viability. Inferred Sources are thought-about too speculative geologically to have financial issues utilized to them that will allow them to be categorized as Mineral Reserves. An Inferred Mineral Useful resource has a decrease stage of confidence than that making use of to an Indicated Mineral Useful resource and should not be transformed to a Mineral Reserve. It’s fairly anticipated that a lot of the Inferred Mineral Sources might be upgraded to Indicated Mineral Sources with continued exploration.
- Sources are reported in accordance with NI43-101 Requirements of Disclosure for Mineral Initiatives (BCSC, 2016) and the CIM Definition Requirements for Mineral Sources and Mineral Reserves (CIM, 2014).
- Mineral Sources have been estimated for gold, silver, and gold equal (Au Eq) utilizing a mixture of abnormal kriging and inverse distance cubed inside grade shell domains.
- Mineral sources are reported utilizing a cut-off grade of 0.15 g/t Au Eq for oxide sources and 0.60 g/t Au Eq for non-oxide sources. Au Eq for the aim of cut-off grade and reporting the Mineral Sources relies on the next assumptions gold worth of US$1,950/oz gold, silver worth of US$23.50/oz silver, and oxide gold recoveries starting from 45% to 79%, oxide silver recoveries starting from 10% to 30%, and non-oxide gold and silver recoveries of 71%, mining prices for useful resource and waste of US$2.50/t, processing value (oxide) US$3.49/t, processing value (non-oxide) US$25/t.
- An optimized open-pit shell was used to constrain the Mineral Useful resource and was generated utilizing Lerchs-Grossman algorithm using the next parameters: gold worth of US$1,950/oz gold, silver worth of US$23.50/oz silver, and promoting prices of US$29.25/oz gold. Mining prices for useful resource and waste of US$2.50/t, processing value (oxide) US$3.49/t, processing value (non-oxide) US$25/t, G&A price US$1.06/t. Royalties for the Slab, York and Calvada deposits are 1.25%, and most pit slope angles of fifty levels.
- Totals could not sum as a consequence of rounding.
Estimation Strategy: Lithology and gold and silver bearing domains have been modelled utilizing Leapfrog 2024. These domains are primarily outlined by logged jasperoid and limestone-breccia lithologies and continuity of gold grades above 0.1 g/t gold. Metallurgical domains for oxide, transition and non-oxide have been modelled based mostly on ratio of cyanide leachable gold assay values to fireplace assay gold values along with drillhole logs recording abundance of pyrite and oxidation depth. Transition materials represents roughly 35% of oxide tonnes and comes nearly solely from the Santa Fe deposit. Transition area materials is included within the oxide useful resource. Domains representing lithology, weathering and mineralization fashions have been assigned to a block mannequin with a block dimension of 5 m x 5 m x 6 m. Common bulk densities consultant of the mineralization and lithology fashions have been assigned to the block mannequin and differ from 2.4 t/m3 to 2.6 t/m3.
Grade capping and outlier restrictions have been utilized to gold and silver values and interpolation parameters respectively. High reduce values for gold and silver have been evaluated for every area independently previous to compositing to 1.52 m lengths that honor area boundaries. Estimation was accomplished utilizing Micromine Origin with Strange Kriging (OK) and Inverse Distance cubed (ID3) interpolants. Blocks have been categorized in accordance with the 2014 CIM Definition Requirements. The nominal drillhole spacing for Indicated Mineral Sources is 50 m or much less. The nominal drillhole spacing for Inferred Mineral Sources is 100 m or much less.
Prospects for eventual financial extraction have been evaluated by performing pit optimization utilizing Lerchs-Grossman algorithm with the next parameters: gold worth of US$1,950/oz gold, silver worth of US$23.50/oz silver, promoting prices of US$29.25/oz gold. Mining prices for useful resource and waste of US$2.50/t, processing value (oxide) US$3.49/t, processing value (non-oxide) US$25/t, G&A price US$1.06/t. Royalties for the Slab, York and Calvada deposits are 1.25%. Most pit slope is 50 levels. Processing recoveries vary from 45% to 79% for oxide, silver recoveries vary from 10% to 30% for oxide and non-oxide gold and silver recoveries are 71%.
Extra info relating to the Santa Fe Mine venture’s MRE replace is included within the NI 43-101 Technical Report titled Santa Fe Venture Technical Report with an efficient date of October 9, 2024, Report Date: November 27, 2024*.
Certified Individuals
The certified individuals are Kenji Umeno, P.Eng. of Kappes, Cassiday & Associates; Thomas Dyer, P.E. of RESPEC; Trevor Rabb, P.Geo. and Darcy Baker, P.Geo. of Fairness Exploration Consultants Ltd. every of whom is an impartial “Certified Particular person” below NI 43-101. A technical report supporting the outcomes disclosed herein will probably be revealed inside 45 days. The efficient date of the technical report will probably be December 10, 2024.
About Lahontan Gold Corp.
Lahontan Gold Corp. is a Canadian mine improvement and mineral exploration firm that holds, by its US subsidiaries, 4 top-tier gold and silver exploration properties within the Walker Lane of mining pleasant Nevada. Lahontan’s flagship property, the 26.4km2 Santa Fe Mine venture, had previous manufacturing of 356,000 ounces of gold and 784,000 ounces of silver between 1988 and 1995 from open pit mines using heap-leach processing (Nevada Division of Minerals, www.ndomdata.com). The Santa Fe Mine has a Canadian Nationwide Instrument 43-101 compliant Indicated Mineral Useful resource of 1,539,000 oz Au Eq(grading 0.99 g/t Au Eq) and an Inferred Mineral Useful resource of 411,000 oz Au Eq (grading 0.76 g/t Au Eq), all pit constrained (Au Eq is inclusive of restoration, please see Santa Fe Venture Technical Report*). For extra info, please go to our web site: www.lahontangoldcorp.com
* Please see the Santa Fe Venture Technical Report, Authors: Trevor Rabb, P. Geo, Darcy Baker, PhD, P. Geo., and Kenji Umeno, P. Eng., Efficient Date: October 9, 2024, Report Date: November 27, 2024. The Technical Report is on the market on the Firm’s web site and SEDAR+.
On behalf of the Board of Administrators
Kimberly Ann
Founder, CEO, President, and Director
FOR FURTHER INFORMATION, PLEASE CONTACT:
Lahontan Gold Corp.
Kimberly Ann
Founder, Chief Government Officer, President, Director
Cellphone: 1-530-414-4400
E-mail: Kimberly.ann@lahontangoldcorp.com
Web site: www.lahontangoldcorp.com
Cautionary Be aware Relating to Ahead-Wanting Statements:
This information launch accommodates “forward-looking statements” and “forward-looking info” (collectively, “forward-looking statements”) throughout the that means of Canadian and United States securities laws, together with america Personal Securities Litigation Reform Act of 1995. All statements, aside from statements of historic reality, are forward-looking statements. Ahead-Wanting statements on this information launch relate to, amongst different issues: the Firm’s strategic plans; the outcomes of the PEA; the financial potential and deserves of the Venture; the estimated quantity and grade of mineral sources on the Venture; valuable metals costs; the PEA representing a viable improvement choice for the Santa Fe Mine venture (“the Venture”); the timing and particulars of the event phases as recognized within the PEA; estimates with respect to LOM, working prices, sustaining capital prices, capex, AISC, money prices, LOM manufacturing, processing plant throughput, NPV and after-tax IRR, payback interval, manufacturing capability and different metrics; the estimated financial returns from the Venture; mining strategies and extraction methods; the exploration potential of the Venture and its inclusion in future mining research.
These forward-looking statements replicate the Firm’s present views with respect to future occasions and are essentially based mostly upon a number of assumptions that, whereas thought-about cheap by the Firm, are inherently topic to vital operational, enterprise, financial and regulatory uncertainties and contingencies. These assumptions embrace, amongst different issues: situations typically financial and monetary markets; tonnage to be mined and processed; grades and recoveries; costs for silver and gold remaining as estimated; foreign money alternate charges remaining as estimated; reclamation estimates; reliability of the up to date MRE and the assumptions upon which it’s based mostly; future working prices; costs for vitality inputs, labor, supplies, provides and companies (together with transportation); the provision of expert labor and no labor associated disruptions at any of the Firm’s operations; no unplanned delays or interruptions in scheduled manufacturing; efficiency of obtainable laboratory and different associated companies; availability of funds; all mandatory permits, licenses and regulatory approvals for operations are acquired in a well timed method; the power to safe and preserve title and possession to properties and the floor rights mandatory for operations; and the Firm’s skill to adjust to environmental, well being and security legal guidelines. The foregoing record of assumptions just isn’t exhaustive.
Neither TSX Enterprise Trade nor its Regulation Providers Supplier (as that time period is outlined in insurance policies of the TSX Enterprise Trade) accepts accountability for the adequacy or accuracy of this launch. Aside from statements of historic reality, this information launch accommodates sure “forward-looking info” throughout the that means of relevant securities legislation. Ahead-looking info is ceaselessly characterised by phrases reminiscent of “plan”, “count on”, “venture”, “intend”, “imagine”, “anticipate”, “estimate” and different related phrases, or statements that sure occasions or situations “could” or “will” happen. Ahead-looking statements are based mostly on the opinions and estimates on the date the statements are made and are topic to quite a lot of dangers and uncertainties and different elements that would trigger precise occasions or outcomes to vary materially from these anticipated within the forward-looking statements together with, however not restricted to delays or uncertainties with regulatory approvals, together with that of the TSXV. There are uncertainties inherent in forward-looking info, together with elements past the Firm’s management. The Firm undertakes no obligation to replace forward-looking info if circumstances or administration’s estimates or opinions ought to change besides as required by legislation. The reader is cautioned to not place undue reliance on forward-looking statements. Extra info figuring out dangers and uncertainties that would have an effect on monetary outcomes is contained within the Firm’s filings with Canadian securities regulators, which filings can be found at www.sedar.com
