- Phase One drilling at Santa Fe delivers shallow oxide intercepts including 89.9 meters grading 0.23 g/t Au at York and 39.6 meters grading 0.30 g/t Au at Slab
- Second high-grade York zone discovered 18.3 meters grading 0.73 g/t Au, including 12.2 meters at 1.0 g/t Au, confirming new structural controls
- Warrant acceleration could provide $1.7 million in proceeds, reinforcing Lahontan’s ability to fund ongoing exploration and development
The gold development sector continues to walk a fine line between exploration success and financial strength. Investors look for companies that can expand resources while maintaining the capital to move projects toward production. Nevada, with its mining-friendly jurisdiction and extensive infrastructure, remains a prime location for this balancing act. Lahontan Gold (TSX.V: LG) (OTCQB: LGCXF) is currently exemplifying this dynamic through positive drill results at its Santa Fe Mine project and a concurrent warrant acceleration that bolsters its balance sheet.
Drilling Extends Santa Fe’s Resource Potential
Lahontan’s Phase One 2025 reverse-circulation drilling program at Santa Fe tested both the York and Slab zones, returning multiple intercepts that validate and extend the project’s resource model.
At York, hole YOR25-001R delivered a standout 89.9 meters grading 0.23 g/t gold from just 45.7 meters depth, confirming a thick, shallow oxide zone with strong continuity. The intercept expands the resource footprint east of the current pit shell and demonstrates clear potential for pit expansion.
A second hole, YOR25-002R, cut 18.3 meters grading 0.73 g/t gold, including 12.2 meters at 1.0 g/t gold, before ending in mineralization. This result highlights the importance of the York Fault as a structural control and suggests the gold system remains open both along strike and down-dip, creating targets for follow-up drilling.
At the Slab zone, hole CAL25-004R intersected 39.6 meters grading 0.30 g/t gold beneath the existing open pit. Geometry suggests a stacked horizon of oxide mineralization mirroring the overlying resource, which could extend pit depths and enhance mine economics without significantly increasing stripping ratios.
Financial Strength Through Warrant Acceleration
Complementing the drill results, Lahontan announced the acceleration of warrants issued earlier in 2025. The company triggered acceleration provisions after shares traded above $0.12 CAD for 10 consecutive days, allowing it to move the expiry date up to October 21, 2025.
If all outstanding warrants are exercised, Lahontan stands to receive approximately $1.7 million in proceeds. Management has indicated these funds will support working capital, exploration, and continued project advancement. This financing option avoids the dilution often associated with new capital raises while signaling investor confidence in Lahontan’s trajectory.
Strategic Integration: Results and Capital
The dual catalysts of drilling success and capital inflow reinforce each other. Positive results expand Santa Fe’s potential, supporting share price performance that in turn enables warrant exercises, creating a self-sustaining cycle of exploration and funding.
Lahontan is now planning Phase Two drilling at both York and Slab later this year, targeting down-dip and strike extensions. With NI 43-101 resource already exceeding 1.9 million ounces gold equivalent and new discoveries in hand, the company is positioned to add meaningful ounces while advancing toward development milestones.
Nevada Advantage
Nevada’s Walker Lane has a long track record of production, and Santa Fe benefits from historical output of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995. Existing infrastructure and a favorable jurisdiction help reduce development risk and capital requirements, supporting Lahontan’s plan to update its Preliminary Economic Assessment and continue advancing Santa Fe toward production.
Outlook
Lahontan’s combination of drilling success and strengthened financial flexibility highlights its ability to execute across both exploration and development fronts. With stacked zones at Slab, expanded mineralization at York, and $1.7 million in potential warrant proceeds, the company is positioned to accelerate its growth trajectory.
For more information, visit the company’s website at www.LahontanGoldCorp.com.
NOTE TO INVESTORS: The latest news and updates relating to LGCXF are available in the company’s newsroom at https://nnw.fm/LGCXF
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