Lahontan Gold (TSXV: LG) has released a preliminary economic assessment for its Sante Fe gold-silver project in Nevada, the company’s flagship asset. The PEA outlines an after-tax net present value of US$200.0 million based on $2,705 gold and $32.60 silver using a 5% discount.
The preliminary economic assessment is based on a life of mine of nine years at an open pit operation, which is expected to produce a total of 336,700 ounces of gold and 714,700 ounces of silver over the life of mine. These ounces would be pulled from the Sante Fe, Slab, Calvada East and York deposits.
Pre-production capital costs are estimated at $135.1 million, while sustaining costs are pegged at $17.8 million.
In the spot case scenario, payback from the mine is estimated at 2.9 years with an internal rate of return of 34.2% on an after tax basis. The economics at the base case of $2,025 gold and $24.20 silver meanwhile boast an after-tax net present value (5% discount) of $56.5 million, an IRR of 14.0%, and a payback period of 4.2 years.
“There is considerable potential to expand gold and silver resources, therefore this is just the first step in restarting mining operations at Santa Fe. 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,” commented Lahontan Gold CEO Kimberly Ann.
Lahontan Gold last traded at $0.055 on the TSX Venture.
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