Lahontan Gold Announces Updated Santa Fe Preliminary Economic Assessment Featuring an Eleven-Year Mine Life and Post-Tax NPV5 of US$820 Million

Lahontan’s Santa Fe PEA projects strong economics but faces long-term execution hurdles.

What the company is saying

Lahontan Gold Corp. is emphasizing the robust economic potential of its Santa Fe Mine gold-silver project, highlighting a post-tax NPV 5 of US$820.0 million and a 40.1% IRR at base-case metal prices. The company frames these results as a transformative step, with CEO Kimberly Ann stating the new NPV is over fourteen times the 2024 PEA figure, though the prior value is only cited in her quote. The announcement stresses significant cash flow potential, with US$1.68 billion pre-tax and US$1.32 billion post-tax LOM net cash flow, and a projected LOM revenue of US$3.68 billion. Management underscores the scalability of the project, noting average annual production of 91,900 gold-equivalent ounces, rising to 112,500 ounces in later years. The tone is confident and forward-looking, with claims of completed environmental baseline studies and expectations to secure permits in 2027. The company acknowledges the preliminary nature of the PEA, the reliance on Inferred Mineral Resources, and the absence of defined Mineral Reserves, but positions the project as the cornerstone of its Nevada-focused production strategy.

What the data suggests

The PEA projects a post-tax NPV 5 of US$820.0 million and a 40.1% IRR, assuming US$3,600/oz gold and US$49/oz silver, with LOM net cash flow of US$1.68 billion before tax and US$1.32 billion after tax over an 11-year mine life plus a year of residual leaching. Projected LOM revenue is US$3.68 billion, with average annual production of 91,900 gold-equivalent ounces, including 88,300 ounces of gold and 254,000 ounces of silver. Cash costs are estimated at US$1,909/oz gold, with AISC at US$2,250/oz. Pre-production capital is US$172.0 million, including a US$22.2 million contingency, with a payback period of 3.7 years. At spot prices (US$4,166/oz gold, US$59/oz silver), post-tax NPV 5 rises to US$1.13 billion and IRR to 50.4%. The project assumes heap leach recoveries for gold between 45% and 71%, and for silver between 0% and 30%, across several deposits. The resource estimate uses a gold price of US$3,200/oz and silver at US$40.00/oz, with mining costs of US$2.50/t and processing costs of US$3.50/t (oxide) and US$18/t (non-oxide). No Mineral Reserves are defined; all figures are based on Inferred and Indicated Resources, which are geologically speculative. The company has completed environmental baseline studies and plans to submit a Mine Plan of Operations to the BLM, targeting permits in 2027. All economic projections are contingent on successful permitting, financing, and project execution.

Analysis

The announcement presents a detailed and technically robust Preliminary Economic Assessment (PEA) for the Santa Fe Mine, with comprehensive projected figures for NPV, IRR, cash flow, and production. However, all economic benefits are forward-looking and contingent on future permitting, financing, and successful project execution. The PEA is explicitly preliminary, relies on Inferred Mineral Resources (which are geologically speculative), and the company has not defined any Mineral Reserves. The projected benefits (e.g., NPV, IRR, production rates) are based on optimistic metal price assumptions and are not guaranteed. The capital outlay is significant (US$172 million pre-production), but there is no evidence of committed funding or near-term cash flow. The narrative is positive and emphasizes large potential returns, but the gap between current status (PEA stage, no permits, no reserves) and the implied value is substantial.

Risk flags

• ●The PEA is based on Inferred Mineral Resources, which are geologically speculative and do not demonstrate economic viability; there is no certainty that the projected NPV, IRR, or cash flows will be realized. This reliance on lower-confidence resources increases the risk that actual mine performance could fall short of projections.
• ●No Mineral Reserves are defined for the Santa Fe project, meaning the economic case is not underpinned by proven or probable reserves. Without reserves, the likelihood of achieving the forecasted production and financial outcomes is materially reduced.
• ●Permitting remains a major hurdle, with the company only expecting to obtain federal and state approvals in 2027. Regulatory delays or unexpected findings during the permitting process could postpone or derail project development.
• ●The project requires significant upfront capital (US$172.0 million pre-production), yet there is no evidence of committed financing or funding arrangements. The ability to raise this capital on acceptable terms is uncertain, especially for a project at the PEA stage.
• ●Projected economics rely on high gold and silver price assumptions (US$3,600/oz gold, US$49/oz silver base case), which may not be sustained over the mine life. Lower realized prices would materially reduce project returns.

Bottom line

Lahontan Gold Corp.'s Santa Fe PEA outlines a project with strong headline economics—US$820 million post-tax NPV 5, 40.1% IRR, and over US$3.6 billion in projected revenue—but all value is contingent on future permitting, financing, and successful mine construction. The absence of defined Mineral Reserves and reliance on Inferred Resources means the projections are speculative, not bankable. The company expects to secure permits in 2027, so investors should view all cash flow and value realization as long-term and high risk. The capital requirement is substantial, with no current evidence of funding. The most important takeaway is that while the PEA signals potential, the gap between current status and actual production is wide, and all upside is subject to significant execution and regulatory risk. Investors should watch for progress on permitting, resource conversion to reserves, and concrete financing steps before assigning full value to these projections.

Announcement summary

(TSXV:LG, OTCQB:LGCXF) Lahontan Gold Corp. announced the results of a positive Preliminary Economic Assessment (PEA) for its flagship Santa Fe Mine gold-silver project. The PEA was prepared by Kappes, Cassiday & Associates (KCA) with mine planning, mineral resource estimation, and production scheduling by RESPEC Company LLC, in accordance with Canadian National Instrument 43-101. The PEA highlights a post-tax net present value at a 5% discount rate (NPV 5) of US$820.0 million and an internal rate of return (IRR) of 40.1%, based on base-case metal prices of US$3,600/oz gold and US$49/oz silver. Estimated life-of-mine (LOM) net cash flow is US$1.68 billion before taxes and US$1.32 billion after taxes over an 11-year active mine life, followed by one year of residual leaching. Projected LOM revenue is US$3.68 billion. Average annual production is approximately 91,900 gold-equivalent ounces (Au Eq), including about 88,300 ounces of gold and 254,000 ounces of silver, with production expected to increase to approximately 112,500 Au Eq ounces during Years 4 through 11. Estimated gold cash costs are US$1,909/oz and all-in sustaining costs (AISC) are US$2,250/oz. Pre-production capital costs are estimated at US$172.0 million, including a US$22.2 million contingency, with a projected payback period of 3.7 years. At the PEA spot-price case of US$4,166/oz gold and US$59/oz silver, post-tax NPV 5 increases to US$1.13 billion and IRR to 50.4%. The mine plan and production schedule developed for the PEA will inform the final Mine Plan of Operations (MPOO) to be submitted to the U.S. Bureau of Land Management (BLM). Environmental baseline studies have been completed, and Lahontan expects to obtain the federal and state permits required for mine construction in 2027. The PEA mine production schedule includes mining of leach material and waste for the Santa Fe, Calvada, Slab, and York deposits. The nominal processing rate will be 4.6 million tonnes per annum (12,500 tonnes per day) for the first three years, expanding to 6.2 million tonnes per annum (17,000 tonnes per day) thereafter. Total tonnes processed over the LOM are 62,788 kt, with total gold produced of 986.6 koz and total silver produced of 2,850.8 koz. Heap recovery rates for gold range from 45% to 71% depending on deposit and material type, and for silver from 0% to 30%. Reclamation and closure costs are estimated at $34.5 million. The mineral resource estimate (MRE) was prepared in accordance with CIM Definition Standards and NI 43-101, with an effective date of October 1, 2026, and is based on a gold price of $3,200/oz and a silver price of $40.00/oz. Royalties for the Slab, York, and Calvada deposits are 1.25%. Mining costs for ore and waste are US$2.50/t, processing cost (oxide) US$3.50/t, processing cost (non-oxide) US$18/t, and G&A cost US$1.06/t. The project will use standard open-pit mining methods with contractor-owned equipment, and mineralized material will be processed by conventional heap leaching. Gold and silver will be produced as doré bars from on-site smelting. The PEA is preliminary in nature and 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. The company has not defined any Mineral Reserves at the Santa Fe Mine project. Kimberly Ann, Founder, Chair, CEO and President of Lahontan Gold Corp., stated that the base-case post-tax NPV 5 of US$820 million represents an increase of more than fourteen-fold compared with the 2024 PEA (US$56.5 million), and that production is expected to exceed 120,000 gold-equivalent ounces in four years of the mine plan.

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