Lahontan Gold Outlines $820 Million Post-Tax NPV in Santa Fe Mine Assessment
Lahontan Gold Corp. (TSXV:LG) announced updated economic results for its Santa Fe Mine project, projecting a post-tax net present value at a 5 percent discount rate of $820 million and an internal rate of return of 40.1 percent. The updated study outlines an 11-year mine life with an average annual production of nearly 92,000 gold-equivalent ounces, with output surpassing 120,000 ounces per year across four of those years. Cumulative pre-tax net cash flow over the life of the mine is estimated at $1.68 billion.
The new economic metrics mark a significant increase from the project's 2024 preliminary economic assessment, which had calculated a post-tax net present value of $56.5 million. The stronger projected returns and extended cash flows enhance the financial viability of the asset as the company prepares for future development steps.
Lahontan Gold Corp. plans to target mine construction in 2027. Key milestones to follow include securing necessary environmental permits, finalizing its plan of operations, securing construction funding, and converting existing mineral resources into proven and probable reserves. Shares of Lahontan Gold Corp. traded down 2.50 percent at 0.39 CAD following the report.
Key points
- Lahontan Gold Corp. reported a post-tax NPV5 of $820 million and a 40.1% IRR for the Santa Fe Mine.
- The project features an 11-year mine life with average annual production near 92,000 gold-equivalent ounces.
- Pre-tax net cash flow over the life of the mine is projected at $1.68 billion.
- Construction is targeted for 2027, subject to permitting, funding, and resource conversion.
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What are the key financial results of Lahontan Gold's updated PEA?
The assessment projects a post-tax net present value of $820 million, an internal rate of return of 40.1 percent, and pre-tax net cash flow of $1.68 billion over the mine's life.
What is the expected production schedule for the Santa Fe Mine?
The mine is estimated to operate for 11 years with average annual production of nearly 92,000 gold-equivalent ounces, including four years where output exceeds 120,000 ounces per year.
What steps are needed before Lahontan Gold can begin mine construction?
Lahontan Gold targets construction in 2027. To move forward, the company must secure regulatory permits, complete a plan of operations, obtain project funding, and convert mineral resources to reserves.