Lahontan Gold Corp (TSXV: LG | OTCQB: LGCXF) has signed a definitive agreement with a subsidiary of Emergent Metals Corp to acquire the advanced West Santa Fe gold-silver exploration project located only 15km from Lahontan’s flagship Santa Fe Mine, in Nevada’s prolific Walker Lane.
West Santa Fe hosts a gold-silver mineralized system in similar geology to Santa Fe. Previous exploration drilling totals over 13,000m in 171 drill holes, with only five holes deeper than 165m. Preliminary modeling of drill hole data by Lahontan geologists outlines a shallow gold and silver system with a sufficient volume to host 0.5 to 1.0Moz of oxidized gold and silver mineralization in an open-pit mining configuration.
The agreement requires Lahontan to pay US$1.8M over a seven-year period, back-end loaded, to exercise an option to acquire a 100% interest in West Santa Fe. The option payments can be made in a combination of cash and shares at Lahontan’s discretion.
In addition, the company will commit to US$1.4M worth of exploration expenditures over the same period. This should be enough to define an initial mineral resource estimate for West Santa Fe. The agreement is subject to the final approval of the TSX Venture Exchange, expected shortly.
“The completion of the agreement to acquire West Santa Fe is another major step forward for Lahontan. The company continues to accelerate the value-creation process by controlling four top shelf precious metal exploration and mine development projects in a Tier One mining jurisdiction,” commented Kimberly Ann, Lahontan CEO, founder, president, and director.
“Our land holdings in Nevada now total 57km², with the goal of Lahontan becoming the oxide consolidator in the Walker Lane. Our geologic team is already busy compiling and verifying historic drill hole data in anticipation of an initial drilling programme later this year.”
For further information, please visit: www.lahontangoldcorp.com
