Lahontan Gold Corp., a company trading on the TSXV and OTCQB under the symbols LG and LGCXF respectively, has released a positive Preliminary Economic Assessment (PEA) for its Santa Fe Mine gold-silver project in Nevada’s Walker Lane Trend. The PEA, prepared by Kappes, Cassiday & Associates (KCA) and other contributors, outlines significant financial projections and operational details for the project.
PEA Highlights:
- Pre-tax Net Present Value at a 5% discount rate (NPV5) of US$265.1 M with a 41.0% Internal Rate of Return (IRR).
- After-tax NPV5 of US$200.0 M with a 34.2% IRR using spot metal prices.
- Total Life-of-Mine (LOM) Pre-tax net cash flow of US$373.3 M and After-tax net cash flow of US$288.9 M 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$135.1 M with a payback period of 2.9 years.
Kimberly Ann, Executive Chair, CEO, President, and Founder of Lahontan Gold Corp, expressed excitement about the PEA results. The low initial capital investment and high profitability of the project indicate promising prospects for the company and its stakeholders. With plans to expand gold and silver resources, Lahontan aims to restart mining operations at Santa Fe.
Economic Sensitivities:
The project’s economic viability is influenced by metal prices, as shown in Table 1. Various price scenarios demonstrate the project’s resilience and potential profitability under different market conditions.
Capital Costs:
Table 2 details the capital costs associated with the Santa Fe Mine project, including pre-production and LOM sustaining costs. The expenses cover mining, processing, infrastructure, and reclamation activities.
Operating Costs:
Table 3 outlines the projected operating costs for the project, encompassing mining, processing, infrastructure support, and general administrative expenses. These estimates provide insights into the operational budget and efficiency of the project.
Mine Production Schedule:
The mine production schedule includes a phased approach to mining leach material and waste across different deposits. The detailed schedule ensures optimal resource utilization and efficient production output over the project’s lifespan.
Mining and Processing:
The mineralized material will be extracted using standard open-pit mining methods and processed through heap leaching techniques. The process involves crushing, leaching, and metal recovery operations to yield gold and silver products for further refining.
Mineral Resource Estimation:
Detailed mineral resource estimates, as per CIM and NI 43-101 standards, provide a comprehensive overview of the project’s resource potential and constraints. The estimates offer critical insights into the economic feasibility and resource distribution within the project area.
In conclusion, the PEA for the Santa Fe Mine project showcases a promising future for Lahontan Gold Corp. The robust financial projections, efficient operating strategies, and resource potential highlight the company’s commitment to sustainable growth and profitability in the mining sector. As Lahontan progresses towards mine development and operational phases, the company aims to maximize shareholder value and contribute to the regional economy through responsible mining practices.
