Lahontan Gold (TSXV: LG, OTCQB: LGCXF) is an exploration company detaining three gold and silver projects in Nevada, USA. Information in gold is the retail shareholder can only purchase 32% of the share structure, the rest being divided by institutional investors, Victoria Gold and KA Gold. The company recently closed an upsized financing as it intends to explore the Santa Fe property and also filed the Santa Fe report.

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Company Overview

Inside Nevada's productive Walker Lane, Lahontan Gold (TSXV: LG, OTCQB: LGCXF)  is in charge of three exploring projects for gold and silver. A shallow, oxidized precious metal mineralization using open pit mining and heap-leach processing has produced 345,000 ounces of gold and 710,000 ounces of silver from our flagship asset, the 19.1 km2 Santa Fe Mine, which is 100% managed. On January 17, 2023, the Corporation released the first Mineral Resource Estimate ("MRE") for Santa Fe based on 1,275 drill holes totalling 125,435 meters, including 50 drill holes totaling 13,118 meters since 2021 that Lahontan conducted.

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Santa Fe Flagship Project

The Santa Fe Mine is located in western Nevada's Walker Lane mineral district, about 50 kilometers from Hawthorne in Mineral County. Fortitude Gold's Isabella Pearl and Borealis are two nearby active gold and silver mines (Waterton). On a 19 km2 piece of ground entirely under Lahontan's control, the Santa Fe Mine comprises four open-pit deposits that have previously produced: the Santa Fe, Slab, Calvada East, and York deposits. Using heap-leach technology, 345,000 ounces of gold and 711,000 ounces of silver were reportedly produced between 1988 and 1995. (Nevada Bureau of Mines and Geology, 1995). Santa Fe still has a significant amount of untapped exploration potential, and the company plans to keep up its aggressive exploration schedule in 2023.

Highlights from the Maiden Mineral Resource Estimate, which included 1,275 drill holes totalling 125,435 meters, including 50 drill holes totaling 13,118 meters drilled by Lahontan since 2021, include:

- Project-wide pit-constrained Indicated Mineral Resources of 1,112,000 contained gold equivalent (“Au Eq”) ounces, and Inferred Mineral Resources of 544,000 contained Au Eq ounces.

-Project-wide average grade for the Indicated Mineral Resource is 1.14 g/t Au Eq; the average grade of the Project-wide Inferred Mineral Resource is 1.00 g/t Au Eq.

- Indicated Oxide Resources total of 21.6 Mt grading 1.03 g/t Au Eq for 712,000 Au Eq ounces and Inferred Oxide Resources total of 11.1 Mt grading 0.73 g/t Au Eq for 262,000 Au Eq ounces.

- The MRE block model shows that gold and silver mineralization extends well beyond the conceptual pit shells, generating high-quality targets for additional drilling and resource growth.

"Lahontan is excited to have reached this important milestone in the Company's history with the filing of the Santa Fe Mine Technical Report. The Technical Report and Mineral Resource Estimate establish a benchmark in terms of contained gold and silver ounces at Santa Fe. We view this benchmark as just the beginning: our focus going forward is to expand this maiden resource, with a focus on shallow oxide gold and silver mineralization, targeting an updated and expanded Mineral Resource Estimate and Preliminary Economic Assessment ("PEA") in the near future. The Santa Fe Mine has the potential to be brought back into production quickly with a robust production profile, therefore we want to establish preliminary project economics as rapidly as possible".

Kimberly Ann, Founder, President, CEO, and Director

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The board is moving

The company announced on March 13 that Brian J. Maher had been named Vice President of Exploration. Mr. Maher, one of Lahontan's founders, offers the company more than 45 years of experience in exploration and mining development. Economic geologist Brian Maher has worked in the global mining and exploration sector for over 45 years. Before joining Lahontan, Brian served as the president, chief executive officer, and director of Prodigy Gold Inc. He oversaw the company's rapid expansion while exploring and developing the 6.6 million ounce Magino gold deposit in northern Ontario, which led to Prodigy Gold's $341 million acquisition by Argonaut Gold in 2012.

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Share Structure / Financials 

Over the last 2 months, the company did two financings. The first one was closed on February 28 for a total of $3.06M through the issuance of  27.85M shares at $0.11 and entitled warrants at $0.18. The gross proceeds will be used for exploration expenditures on Santa Fe property, working capital, and general corporate purposes. Then, Lahontan closed a smaller financing worth $50k through 450k issued shares at $0.11 and a one-half warrant at $0.18.

There are now 121.8M shares issued and outstanding, 40.8M options and warrants. As we mentioned in our introduction, retail investors only represent 32% of the share structure, while institutional investors (20%), KA Gold (10%), and Victoria Gold (38%) have the most significant ownership. The company also detains $3.3M in cash and $0 in debt. 

Regarding the share price, it trades now at $0.24 (April 3rd, 2023) and has enjoyed a nice uptrend since early January 2023 while at its 52-week low. 

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Bottom Line

Lahontan Gold (TSXV: LG, OTCQB: LGCXF) is a well-funded exploration company whose flagship property has already provided significant results. The next step will be the PEA, which will be crucial for Lahontan. Remember it won’t take much for the company to bring Santa Fe property back to production leading to revenues. 

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