Lahontan Gold Corp. (TSXV: LG |OTCQB: LGCXF) has announced results from a positive preliminary economic assessment (PEA) on its flagship Santa Fe Mine gold-silver project located in Nevada’s prolific Walker Lane Trend.
The PEA was prepared by Kappes, Cassiday & Associates, with mine planning and production scheduling contributions from RESPEC Company LLC, and mineral resource estimation by Equity Exploration Consultants Ltd., in accordance with Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects (NI 43-101).
Kimberly Ann, Lahontan Gold Corp executive chair, CEO, president, and founder commented, “Lahontan is very excited about the results of the PEA: a low-capex, highly profitable mining project with a quick payback certainly bodes well for the future of Lahontan and all stakeholders. There is considerable potential to expand gold and silver resources, therefore this is just the first step in restarting mining operations at Santa Fe.”
PEA Highlights:
• Pre-tax net present value at a 5% discount rate of US$265.1M with a 41.0% IRR with an After-tax NPV5 of US$200.0M with a 34.2% IRR utilizing a US$2,705/oz gold price and a US$32.60/oz silver price
• Total life-of-mine pre-tax net cash flow of US$373.3M and after-tax net cash flow of US$288.9M over a nine-year project life using spot metal prices
• Total projected LOM revenue of US$930.8M over a nine-year project life using spot metal prices
• LOM strip ratio of only 1.54 (waste to mineralized material ratio)
• Estimated pre-production capital costs of US$135.1M including a 20% contingency, with a payback of 2.9 years using spot metal prices
“With mine permitting well under-way, targeting a 2026 mine ground-breaking, the potential for the company to realize the economic outcomes outlined in the PEA is very real, especially given current trends in gold and silver prices. Continued optimization of the mine plan, resource expansion drilling, and refining the metallurgical flow sheet are planned for 2025, in parallel with our permitting activities,” added Kimberley Ann.
Additionally, the company has stated that the PEA is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The company has not defined any mineral reserves at the Santa Fe Mine project.
To find out more, please visit www.lahontangoldcorp.com
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