Lahontan Gold closes acquisition of 27 York claims at Santa Fe mine project, Nevada
Lahontan Gold Corp. [TSXV: LG; OTCQB: LGCXF] has completed the purchase of 27 unpatented lode mining claims (the York claims) in Nevada from Emergent Metals Corp. [TSXV: EMR; OTCQB: EGMCF; FRA, MUN: ELM; BSE: EML].
The York claims are contiguous with the southeast corner of the Santa Fe mine project and provide a compelling opportunity to significantly expand oxide gold and silver mineral resources previously defined at the York deposit. Modelling of drill data during the mineral resource estimation process suggests that gold and silver mineralization likely extends onto the York claims. This targeting concept was in part validated by Lahontan’s recent drilling campaign where reverse circulation drill hole YOR25-001R cut 89.9 metres (45.7 to 135.6 m) grading 0.23 g/t gold.
The company is currently planning additional drilling at the York target area for this fall. With the addition of the York claims, the company now owns or controls 415 unpatented lode mining claims, 67 unpatented mill site claims and 24 patented lode mining claims encompassing over 2,832 hectares or 28.3 km2 of mineral rights in one of the world’s premier gold belts: Nevada’s Walker Lane.
Kimberly Ann, Lahontan founder, chair, CEO and president, commented: “Lahontan is excited to have completed the purchase of the York claims. The gold and silver resource expansion potential, combined with the ability to further layback the York pit in potential future mining operations, makes the purchase a strategic acquisition for the company. Lahontan now controls a district-scale land package that, despite prolific past production and the completion of over 1,200 drill holes, remains largely unexplored with multiple targets for resource expansion and new discoveries.”
Terms of the purchase include: Lahontan has paid Emergent’s US subsidiary, Golden Arrow Mining Corp. (GAMC), a sum of US$10,000.
Lahontan has issued GAMC a US$50,000 promissory note, with a 1%-per-month interest rate, and payable within six months of signing this announcement.
Lahontan has issued 2 million common shares of Lahontan Gold to Emergent. GAMC will facilitate the transfer of the York claims to Lahontan or its designee, to be completed within 30 days of today’s date.
As part of the transfer, Lahontan has granted GAMC a 1% NSR royalty on the York claims. At any time before the third anniversary of the agreement, Lahontan may purchase the royalty for US$500,000. After the third and before the seventh anniversary of the agreement, Lahontan may purchase the royalty for US$1 million.
Lahontan Gold holds, through its United States subsidiaries, four top-tier gold and silver exploration properties in the Walker Lane of Nevada. Lahontan’s flagship property, the 28.3 km2 Santa Fe mine project, had past production of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open pit mines utilizing heap-leach processing.
The Santa Fe mine has a NI 43-101-compliant indicated mineral resource of 1,539,000 ounces AuEq (gold equivalent) (48,393,000 tonnes grading 0.92 g/t Au and 7.18 g/t Ag, together grading 0.99 g/t AuEq) and an inferred mineral resource of 411,000 oz AuEq (16.76 million grading 0.74 g/t Au and 3.25 g/t Ag, together grading 0.76 g/t AuEq), all pit constrained (AuEq is inclusive of recovery). The company plans to continue advancing the Santa Fe mine project toward production, update the Santa Fe preliminary economic assessment and drill test its satellite West Santa Fe project during 2025.