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Santa Fe Mine

Located 15 Km southwest of the Paradise Peak mine (+1.5M oz Au) and contiguous with the Isabella-Peal mine, a high-grade open-pit heap leach operation. Gold was discovered at Santa Fe in the 70’s; Corona Gold produced ~345,000 ounces Au between 1988 and 1992 from an open-pit mine with heap-leach processing.

Corona was acquired by Homestake Mining in 1992; Homestake completed mine closure and reclamation over the next two years. Homestake was subsequently acquired by Barrick in 2001. Through a series of transactions, Victoria Gold acquired a 100% interest in the project in 2012. The project has been under post-closure monitoring since 1999, a US $300,000 bond is in place with the BLM. Annual holding and monitoring costs are US $100,000. Most of the project is gently rolling hills with excellent access.

QUICK FACTS

OWNERSHIP

100% Lahontan Gold 

LOCATION

Mineral County, Walker Lane – Nevada

LAND PACKAGE

19.1 Km

MAIDEN RESOURCE

1,112,000 oz INDICATED and 544,000 oz INFERRED Au Eq Maiden Mineral Resource Estimate

2023 WORK PLAN

+20,000 Metre Drill Plan

KEY TAKEAWAY

Work on the Asset has Outlined Shallow, Oxidized Au & Ag Mineralization as well as Deeper High-Grade Potential

TECHNICAL REPORTS

CORPORATE PRESENTATION

Maiden Mineral Resource Estimate (“MRE”) for flagship Santa Fe Mine, a past-producing open pit, heap leach gold and silver mine located in Mineral County, Nevada. The MRE for Santa Fe is based upon 1,275 drill holes totaling 125,435 metres, including 50 drill holes totaling 13,118 metres drilled by Lahontan since 2021.

Highlights of the MRE include:

  • • Project-wide pit constrained Indicated Mineral Resources of 1,112,000 contained gold equivalent (“Au Eq”) ounces and Inferred Mineral Resources of 544,000 contained Au Eq ounces (assumptions for Au Eq are described in the Notes to Tables 1 and 2).
  • • Project-wide average grade for the Indicated Mineral Resource is 1.14 g/t Au Eq; the average grade of the Project-wide Inferred Mineral Resource is 1.00 g/t Au Eq.
  • • Indicated Oxide Resources total 21.6 Mt grading 1.03 g/t Au Eq for 712,000 Au Eq ounces and Inferred Oxide Resources total 11.1 Mt grading 0.73 g/t Au Eq for 262,000 Au Eq ounces.
  • • The conceptual pit shells returned preliminary strip ratios (waste:ore) of 3.6:1 at the Santa Fe deposit and 2.3:1 at the Slab-Calvada-York Complex. Within both conceptual pits, gold and silver deposits crop out at the surface providing opportunities for rapid, low-cost mining operations.
  • • The MRE block model shows that gold and silver mineralization extends well beyond the conceptual pit shells, generating high-quality targets for additional drilling and resource growth.

Table 1: Project-wide Resources, Santa Fe Mine, Mineral County, Nevada

Notes to Tables 1 and 2:

  1. Mineral Resources have an effective date of December 7, 2022. The Mineral Resource Estimate for the Santa Fe Mine was prepared by Trevor Rabb, P.Geo., of Equity Exploration Consultants Ltd., an independent Qualified Person as defined by NI 43-101.
  2. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Inferred Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be classified as Mineral Reserves. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that most of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
  3. Resources are reported in accordance with NI43-101 Standards of Disclosure for Mineral Projects (BCSC, 2016) and the CIM Definition Standards for Mineral Resources and Mineral Reserves (CIM, 2014).
  4. Mineral Resources were estimated for gold, silver, and gold equivalent (Au Eq) using a combination of ordinary kriging and inverse distance cubed within grade shell domains.
  5. Mineral resources are reported using a cut-off grade of 0.25 g/t Au Eq for oxide resources and 0.60 g/t Au Eq for non-oxide resources. Au Eq for the purpose of cut-off grade and reporting the Mineral Resources is based on the following assumptions gold price of US$1,770/oz gold, silver price of US$22.00/oz silver, and oxide gold recoveries ranging from 60% to 77%, oxide silver recoveries ranging from 40% to 55%, and non-oxide gold and silver recoveries of 71%, mining costs for ore and waste of US$2.20/t, crushing cost of US$2.71/t, processing cost (oxide) US$6.80/t, processing cost (non-oxide) US$25/t.
  6. An optimized open-pit shell was used to constrain the Mineral Resource and was generated using Lerchs-Grossman algorithm utilizing the following parameters: gold price of US$1,770/oz gold, silver price of US$22/oz silver, gold selling costs of US$56/oz gold, and silver selling costs of US$3/oz silver. Mining costs for ore and waste of US$2.20/t, crushing cost of US$2.71/t, processing cost (oxide) US$6.80/t, processing cost (non-oxide) US$25/t, G&A cost US$3.99/t. Royalties for the Slab, York and Calvada deposits are 1.25%, and maximum pit slope angles of 50 degrees.
  7. Totals may not sum due to rounding.

About the Santa Fe Mine:

The Santa Fe Mine is in the Walker Lane mineral belt of western Nevada approximately 50 km from the town of Hawthorne in Mineral County. Nearby operating gold and silver mines include Isabella Pearl (Fortitude Gold) and Borealis (Waterton). The Santa Fe Mine consists of four past-producing open-pits, including the Santa Fe, Slab, Calvada East, and York deposits, within a 19 km2 land package 100% controlled by Lahontan. Gold and silver production occurred between 1988 and 1995 utilizing heap-leach processing that produced a reported 345,000 oz of gold and 711,000 oz of silver (Nevada Bureau of Mines and Geology, 1995). Mineralization occurs as disseminated gold and silver hosted by Triassic age calcareous rocks. Strong stratigraphic and structural controls of mineralization is evident. Considerable exploration potential remains at Santa Fe and the Company intends to continue its aggressive exploration program during 2023.

Location of MRE deposits with conceptual pit shells, Santa Fe Mine, Mineral County, Nevada

Table 2: Project-wide Oxide Resources, Santa Fe Mine, Mineral County, Nevada

Oxide Resources:

Oxide resources at the Santa Fe Mine occur at both the Santa Fe deposit and the Slab-Calvada Complex which includes the Slab, Calvada East, York, and Calvada Central deposits. The contained Au Eq oxide ounces for the Slab-Calvada Complex accounts for approximately 19% of the total Indicated Au Eq oxide ounces and 29% of the total Inferred Au Eq oxide ounces. Mineral Resources at the Slab-Calvada Complex are exposed at surface. Oxide resources are open to the north and east of the Slab open pit, along the Calvada Fault, and at the York open pit.

The Santa Fe deposit accounts for 81% of Indicated contained Au Eq oxide ounces, and 71% of Inferred contained AuEq oxide ounces. Oxide Mineral Resources within the Santa Fe deposit are primarily located in the high wall of the Santa Fe open pit. The average grade of the Santa Fe deposit Indicated oxide resource is 1.10 g/t Au Eq, and Inferred oxide resource is 0.77 g/t Au Eq. Oxide resources at the Santa Fe deposit are open to the northeast, south, and southeast.

 

Santa Fe Non-Oxide Resources:

Non-oxide resources at the Santa Fe Mine are principally located in the Santa Fe deposit below the oxide resources within the resource pit shell. The average grade of the Santa Fe deposit Indicated non-oxide resource is 1.41 g/t Au Eq and the Santa Fe deposit Inferred non-oxide mineral resource is 1.50 g/t Au Eq. Gold is very fine-grained and associated with pyrite. Within the southeastern portion of the Santa Fe deposit, higher-grade gold and silver resources may positively influence project economics. Higher grade gold and silver mineralization extends to the southeast of the Santa Fe deposit, along strike and down-rake, providing excellent exploration opportunities to grow the non-oxide resources at Santa Fe.

 

Estimation Approach:

Lithology and gold and silver bearing domains were modelled using Leapfrog Geo 2022. These domains are mainly defined by logged jasperoid and limestone-breccia lithologies and continuity of gold grades above 0.1 g/t gold. Ore type domains for oxide, transition and non-oxide were modelled based on ratio of cyanide leachable gold assay values to fire assay gold values in addition to drillhole logs recording abundance of pyrite and oxidation intensity. Transition material represents less than 5% of oxide tonnes and is included in the oxide resource. Domains representing lithology, weathering and mineralization models were assigned to a block model with a block size of 5 m x 5 m x 6 m. Average bulk densities representative of the mineralization and lithology models were assigned to the block model and vary from 2.4 t/m3 to 2.6 t/m3.

Grade capping and outlier restrictions were applied to gold and silver values and interpolation parameters respectively. Top cut values for gold and silver were evaluated for each domain independently prior to compositing to 1.52 m lengths that honor domain boundaries. Estimation was completed using Micromine Origin with Ordinary Kriging (OK) and Inverse Distance cubed (ID3) interpolants.  Blocks were classified in accordance with the 2014 CIM Definition Standards. The nominal drillhole spacing for Indicated Mineral Resources is 50 m or less. The nominal drillhole spacing for Inferred Mineral Resources is 100 m or less.

Prospects for eventual economic extraction were evaluated by performing pit optimization using Lerchs-Grossman algorithm with the following parameters: gold price of US$1,770/oz gold, silver price of US$22/oz silver, gold selling costs of US$56/oz gold, and silver selling costs of US$3/oz silver. Mining costs for ore and waste of US$2.20/t, crushing cost of US$2.71/t, processing cost (oxide) US$6.80/t, processing cost (non-oxide) US$25/t, G&A cost US$3.99/t. Royalties for the Slab, York and Calvada deposits are 1.25%. Maximum pit slope of 50 degrees. Processing recoveries range from 60% to 77% for oxide, silver recoveries range from 40% to 55% for oxide and non-oxide gold and silver recoveries are 71%.

• Walker Lane 60-80km wide Physiographic province of northwest Striking faults. Triassic sediments (predominantly carbonates) are intruded by Jurassic to Cretaceous diorite and granite, and overlain by Tertiary volcanic rocks.

• Alteration and gold mineralization controlled by NW, NE and EW structures.

• The Triassic Luning carbonate rocks are often brecciated, decalcified, silicified and sulfidized. Tertiary volcanic rocks are typically clay altered, sulfidized, and locally silicified.

• Generally, Luning Formation carbonate rocks outcrop in the southern half of the property while Tertiary volcanic rocks outcrop in the northern half of the property.

Santa Fe geologic map compiled, with named faults and pit outlines.
Lahontan stratigraphic column with mineralization

• Productive open pit mines are related to east-west and northwest trending faults. Exploration and development focused on outcropping gold mineralization with little drilling between the pits.

• The Pinnacle target area is underlain by Miocene volcanic rocks and is geologically similar to the Isabelle-Pearl Deposit (P&P Reserves: 2.3M tonnes grading 3.05 gpt Au, 18 gpt Ag (220,100 oz Au, 1.2M oz Ag).

19.1 km2  Land Package:

• 291 unpatented lode mining claims

• 67 unpatented mill site clams

• 24 patented lode mining claims. 

• Except for 45 optioned unpatented lode mining claims, all mining claims are 100% owned by Lahontan

Past Production:

• Open pit mines processed by heap leach.  Reported recoveries were >75% for gold and approximately 55% for silver. Strip ratio for Santa Fe Pit was 1.7, for Slab Pit < 1.

In total, Lahontan drilled 9,410 metres in its 2021 Phase One drilling campaign resulting in the discovery of two new high grade “feeder” zones, Bonanza and Big Horn, the expansion of the BH high-grade zone, and impressive volumes of good grade shallow oxide and transition gold and silver mineralization at both the main Santa Fe pit target area and at the Slab target area (see cross sections of the Santa Fe Pit below).  

Cross section through all 2021 Lahontan drill holes in the Santa Fe pit area.  The 2021 drilling campaign was extremely successful in expanding the volume of gold and silver mineralization in areas adjacent to 0.17 gpt grade shell defined by previous drilling (shown in red above).  Note how Lahontan drilling has opened-up potential new gold and silver resources, especially in the newly discovered high-grade zones and deeper portions of the BH zone.

Cross section through RC drill holes SF21-007R, SF21-008R, and SF21-015R through -018R, Santa Fe pit area, Santa Fe Project, Mineral County, Nevada. These drill holes greatly expand the volume of gold and silver mineralized rock adjacent to the 0.17 gpt Au grade shell defined by historic drilling (pink outline).

Central Santa Fe Pit Drill Holes:  As noted above, RC drill holes, SF21-007R, -008R, -015R through -18R targeted expanding potential resources in the central portion of the Santa Fe pit by stepping out into the pit high-wall. While SF21-008R was lost above the intended target, previously reported drill hole -007R intercepted what may be the edge of more high-grade mineralization: 1.5m grading 3.50 gpt Au and 61.9 gpt Ag (4.33 gpt Au Eq, 240.8 – 242.3m).  Drill holes SF21-015R and -016R successfully expanded the volume of transition mineralization between the Big Horn and Bonanza high-grade zone (please see cross sections above). Based on the silver grades, it appears that drill holes SF21-015R and -016R drilled the margins of the Big Horn high-grade zone, confirming tonnage potential of this important high-grade target.  Of note, SF21-007R, -015R and -018R all bottomed in mineralized rock, emphasizing that the Santa Fe deposit remains open at depth.

South-Southeast Extension of the Santa Fe Pit:  RC drill holes SF21-010R through -013R were drilled to further define the boundaries between transition mineralization and fresh rock south-southeast of the Santa Fe pit.  All four drill holes intercepted significant widths of mineralized material and confirmed suspected boundaries of the metallurgical domains in this area.

*Notes: Au Eq equals Au (gpt) + (Ag gpt/75). Metallurgical recovery has not been factored as insufficient test-work is available to determine potential Ag recoveries. True thickness of the intercepts shown above are estimated to be 80-90% of the drilled interval
Drill hole location map, Santa Fe pit area, Santa Fe Project, Mineral County, Nevada. Bright green drill hole traces are those reported here, black traces were previously reported holes. The high-grade Bonanza, Big Horn and BH zones are outlined and remain open down-dip and along strike. Line of long section is shown.

Early in 2021, Lahontan completed its Phase 1A reverse-circulation drilling program totaling 1,218 meters in and around the Santa Fe pit, highlights include:

     • 188.9 meters grading 1.75 gpt Au and 9.9 gpt Ag in drill hole SF21-001R including 56.4 meters grading 2.78 gpt Au and 17.6 Ag and also including 6.1 meters grading 4.29 gpt Au and 31 gpt Ag. Gold and Ag mineralization starts at the surface and the hole bottomed in mineralized rock.

     • 86.9 meters grading 1.08 gpt Au and 3.7 gpt Ag in drill hole SF21-002R. A complete table of drill results is below.

The first portion of the drilling program was centered on the past-producing Santa Fe pit and had two principal objectives: 1) Verify assay data from historic drilling that outlined substantial gold and silver mineralization below and adjacent to the Santa Fe pit; and 2) Confirm metallurgical domains identified by modeling historic drilling, especially at the margins of the deposit.  Lahontan believes that early results from the Phase One drilling program is already achieving these objectives.

Drill holes SF21-001R and -002R were collared in the Santa Fe pit and targeted portions of the high-grade BH Zone.  Both drill holes intercepted extensive thicknesses of gold and silver mineralization with structurally controlled, higher-grade intervals that characterize the BH Zone as seen in the cross section and plan view to the right. 

The assay results compare favorably with nearby historic drill holes giving confidence in the use of historic data in future resource estimates.  The 0.1 gpt outline of gold mineralization, based on modeling of historic drill holes and shown in red in the cross section above, corresponds with thick intervals of gold mineralization seen in drill holes SF21-001R and -002R. The high silver grades are also similar to historic drill results and previous mine production, underscoring the potential for important silver by-product credits in any future mining operation. 

Santa Fe Drilling Cross Section
Santa Fe Drilling

As part of the systematic organization of the drill campaign, drill holes SF21-003R through -006R were collared at the margins of the known gold and silver deposit to confirm depths of oxidation (metallurgical domains) and test the limits of mineralization. Drill holes SF-003R and -004R both intercepted low-grade gold and silver mineralization: 19.9 meters grading 1.04 gpt Au and 2.3 gpt Ag in -003R and 22.8 meters grading 0.51 gpt Au and 4.5 gpt Ag in -004R.  Unfortunately, drill hole -003R lost circulation prior to reaching its targeted depth. Drill holes SF-005R and -006R did not hit significant gold and silver mineralization, however, when combined with the results from -003R and -004R, these drill holes show that the depth of oxidation below the central and northwest portions of the Santa Fe pit is somewhat deeper than what was modeled using historic drill holes and that extensive volumes of oxidized gold and silver mineralization remain unmined.

RC Drill Results 2021, Santa Fe

Phase 1B consists of five core holes, totaling 1,421 metres. These core drill holes explored down-rake and on-strike extensions to the high-grade BH Zone and shallow, potentially open pit minable, Au and Ag mineralization southeast of the Santa Fe open pit.  High-grade intercepts from the BH Zone include:

  • • 3m grading 2.96 gpt Au and 62.2 gpt Ag (3.79 gpt Au Eq), including 37.3m grading 3.78 gpt Au and 96.1 gpt Ag (5.06 gpt Au Eq), also including 4.9m grading 10.76 gpt Au and 126.7 gpt Ag (12.45 gpt Au Eq) in drill hole SF21-001C.

Highlights from shallow oxide drilling include:

  • • 9m grading 0.84 gpt Au and 4.6 gpt Ag (0.90 Au Eq), and 20.7m grading 0.45 gpt Au and 3.4 gpt Ag (0.50 gpt Au Eq) in drill hole SF21-004C.
*Notes: Au Eq equals Au (gpt) + (Ag gpt/75). Metallurgical recovery has not been factored as insufficient test-work is available to determine potential Ag recoveries. True thickness in the BH Zone (drill holes SF21-001C, -002C, -003C, and -005C) is estimated to be 50-75% of the drilled interval; true thickness for the SE extension of shallow mineralization in SF21-004C is estimated to be 75-80% of the drilled interval.

BH Zone:  Core drill holes SF21-001C, -002C, and -003C all targeted portions of the BH Zone with different objectives.  SF21-001C was oriented to the southeast and angled to test a down-rake portion of the BH Zone and verify continuity of high-grade Au and Ag mineralization similar in tenor and thickness to that seen in historic core drill holes BH-3 and BH-6 drilled by Victoria Gold in 2009 and 2010 respectively. SF21-001C expands the volume and thickness of high-grade mineralization, in particular the 4.9 metre interval of 12.45 gpt Au Eq.  It is important to note the very high Ag grades which characterize the BH Zone, e.g.  0.8m grading 6.98 gpt Au and 201 gpt Ag (95.5 – 96.3m), 1.25m grading 5.17 gpt Au and 309 gpt Ag (131.64 – 132.89m), and 1.61m grading 15.04 gpt Au and 107.2 gpt Ag (176.78 – 179.22m), please see core photos below.  The Company believes that a significant Ag byproduct in potential future mining operations could have an important impact on project economics. The hydrothermal alteration and mineralogy seen in SF21-001C is identical to that seen in previous drill campaigns (Lahontan has all the core, assays, and drill logs from the Victoria core drilling program for comparitive purposes) adding further confidence to the interpreted continuity of high-grade Au and Ag mineralization in the BH Zone.

SF21-001C, 96m depth, 6.98 gpt Au, 201 gpt Ag (9.66 gpt Au Eq). Jasperoid-sulfide hydrothermal breccia: Clasts are composed of black jasperoid in silica-sulfide matrix, the matrix has abundant colloform melnikovite (likely recrystallized to alternating pyrite and marcasite) with minor pods of interstitial calcite and occasional leached voids are present.
SF21-001C, 2.1m grading 11.81 gpt Au, 161.6 gpt Ag (13.96 gpt Au Eq) (178.6 – 180.7m). From the footwall of an intensely argillically-altered and brecciated (dacite?) dike: Jasperoid-sulfide hydrothermal and structural breccia, clasts are predominantly black to dark grey jasperoid that locally includes clasts of brecciated dike (white to light-grey).
Drill hole location map, Santa Fe Project, Mineral County, Nevada.

Core drill holes SF21-002C and -003C were collared approximately 150 metres and 245 metres southeast of SF21-001C respectively (please see map above).  These drill holes were targeting high-grade, Au and Ag mineralization up-rake and along strike from the main BH Zone.  The core drill holes hit significant zones of precious metal mineralization: 6.7m grading 2.37 gpt Au and 58.3 gpt Ag (3.14 gpt Au Eq) in SF21-002C (151.2 – 157.9m) and fill in gaps between historic drill holes (please see cross section below).  This mineralization carries the distinctive geochemical signature of the high-grade BH Zone, elevated Ag grades:  1.62 m grading 2.64 gpt Au and 93.9 gpt Ag in SF21-002C (153.62 – 155.24m) and 2.5m grading 2.25 gpt Au and 28.5 gpt Ag in SF21-003C (135.9 – 138.4m).

North-south (left to right, please see map above) cross section through the BH Zone, Santa Fe Project, Mineral County, Nevada. The grade shell outlining the BH Zone is based upon modeling historic drilling, now confirmed and expanded by Lahontan drilling. Drill hole SF21-005C is projected into the section for illustrative purposes.

Based on these drill results and modeling historic drilling, it appears that the BH zone may consist of multiple, repeating or cyclic, down to the southeast raking zones, within the Santa Fe Fault and sympathetic structures.  This interpretation greatly expands that target size of the BH Zone, especially given that older drill holes, located hundreds of metres to the south and southeast of SF21-003C have high-grade intercepts that have not been drill tested since the nineties, i.e., reverse-circulation drill hole CSF-89-19 cut 16.8m grading 6.10 gpt Au including 3.3m 11.65 gpt Au. These southeast extensions to the BH Zone have significant, high-grade, resource potential.

Shallow Drilling:  Core drill hole SF21-004C targeted shallow Au mineralization to the southeast of the Santa Fe open pit (please see map and cross section above).  Historic drilling in this area suggested that shallow, potentially open pit minable, Au and Ag mineralization extended into the target area. SF21-004C cut two intervals of shallow, low-grade Au mineralization with grades within the range that was historically mined at Santa Fe.  Importantly, this mineralization occurs in rocks assigned to the oxide and “transitional” metallurgical domains (please see core photo below). The transitional metallurgical domain is characterized as a mixed zone of oxidized and partially oxidized Au mineralization that maybe cyanide extractable.  Several additional reverse-circulation drill holes were completed late in 2021 in the vicinity of SF21-004C, results from these drill holes are expected shortly.

SF21-004C, 1.1m grading 1.03 gpt Au, 5.5 gpt Ag (1.10 gpt Au Eq) (64.8 – 65.9m). Jasperoid breccia: silicified and decalcified breccia clasts; clasts are subround to subangular silicified limestone with leached voids. The matrix is composed of geothite+hematite+jarosite clays.

Phase 1C consists of four core drill holes, totaling 891 metres, that were completed in late 2021 and targeted down-dip extensions of oxidized gold and silver mineralization below the Slab open pit in an area where historic drilling outlined significant potential oxide resources.  Highlights include:

  • • 41.1 metres grading 0.54 gpt Au and 1.8 gpt Ag (0.56 gpt Au Eq) starting at only 52.4 metres down-hole, and a second vertically stacked zone of 19.5 metres grading 0.26 gpt Au and 5.6 gpt Ag (0.33 gpt Au Eq), all oxidized, in drill hole CAL21-002C.
  • • 26.7 metres grading 0.44 gpt Au and 3.1 gpt Ag (0.48 gpt Au Eq) starting at only 29.4 metres down-hole, and a second, deeper zone, grading 0.21 gpt Au and 1.5 gpt Ag (0.23 gpt Au Eq), all oxidized, in drill hole CAL21-005C.

These four drill holes intercepted oxidized gold and silver mineralization throughout their entire lengths to a maximum down-hole depth of 246 metres, confirming the presence of widespread oxide mineralization in the Slab pit area with only very minor amounts of transitional mineralization. Of critical importance, the drilling identified at least two vertically stacked zones of gold and silver mineralization; the deeper zone can help drive a deeper pit shell during resource estimation and optimization, which increases the volume of potential resources in the Slab pit area (please see long section).

Drill hole CAL2-001C, 114.9 to 117.8m (377.0-386.5 feet); 2.9 metres grading 1.12 gpt Au, 17.3 apt Ag (1.35 gpt Au Eq). Gold and silver mineralization is hosted by brecciated, leached, and oxidized jasperoid and partly silicified limestone.

South-north (left to right, please see map below) long section through the Slab pit area, Santa Fe Project, Mineral County, Nevada.  The grade shell outlining gold and silver mineralization (shown in pink above) is based upon modeling historic drilling, projected into the line of the long section, now confirmed and expanded by Lahontan drilling. 

*Notes: Au Eq equals Au (gpt) + (Ag gpt/75). Metallurgical recovery has not been factored as insufficient test-work is available to determine potential Ag recoveries. True thickness of the intercepts shown above are estimated to be 75-85% of the drilled interval.
Drill hole location map, Phase 1C, Slab pit area, Santa Fe Project, Mineral County, Nevada

Phase 1D consists of four core drill holes, totaling 1,549 metres, that were completed in late 2021 and targeted down-dip step outs from known gold and silver mineralization along the Santa Fe fault, extensions of oxide and transition mineralization southeast of the Santa Fe pit, and an easterly trending structure that may tie Slab pit mineralization to the Santa Fe pit area. Highlights include:

  • • SF21-006c: This core drill hole intercepted continuous gold and silver mineralization over 226 metres (1.22 gpt Au) and the drill hole bottoms in mineralized rock.  Within this intercept, Lahontan has discovered a new high-grade zone (the “Bighorn Zone”) with the highest Au assays in project history: up to 26.2 gpt Au and 61.0 gpt Ag (27.01 gpt Au Eq, 245.5 – 246.6m; please see table below).  This high-grade zone is separate from the BH Zone and suggests that multiple high-grade feeder zones are present at the Santa Fe Project.
  • • SF21-008c: A step-out drill hole southeast of the Santa Fe pit, has successfully intercepted shallow oxidized gold and silver mineralization (75 metres south of previously reported drill hole SF21-004c).  This drill hole demonstrates that additional oxide and transition mineralization is extensive south and southeast of the Santa Fe pit, and underscores the resource potential of this area.
  • • SF21-007c and -009c: These two core drill holes targeted the projected extension of the Calvada fault, an east-west trending structure that may tie together mineralization seen at the Slab-Calvada area with the intensely gold and silver mineralized Santa Fe pit area.  SF21-007c intercepted 64 metres grading 0.74 gpt Au Eq (please see table below) including up to 2.24 gpt Au Eq in transitional rocks (360.6 – 362.1m, 1.97 gpt Au and 19.7 gpt Ag).  Although -009c appears to have drilled over the main structure, the two holes confirm the potential of the Calvada fault zone between the Santa Fe and Slab pits opening up over 1000 metres of potentially mineralized structure.
*Notes: Au Eq equals Au (gpt) + (Ag gpt/75). Metallurgical recovery has not been factored as insufficient test-work is available to determine potential Ag recoveries. True thickness of the intercepts shown above are estimated to be 80-90% of the drilled interval.
Drill hole location map, Santa Fe pit area, Santa Fe Project, Mineral County, Nevada. Bright green drill hole traces are those reported here, darker green traces were previously reported holes, and black drill traces are pending. Line of long section is shown.

The latest drill results emphasize the importance of both structural and stratigraphic controls to precious metal mineralization at Santa Fe.  It is now apparent that structural intersections, e.g. the Santa Fe fault and easterly-tending faults and splays like the Calvada fault, help localize high grades along their raking intersections.  Lahontan will apply this interpretation to further drilling northwest of SF21-006c (please see map above).  The entire drilled interval of Triassic Luning Formation limestone was mineralized in SF21-006c and the hole bottomed in mineralized rock.  Gold and silver mineralization occurs over tens of square kilometres at Santa Fe.  The combined areal and vertical distribution of mineralization points to a very large system with multiple targets, both under cover and on the surface that remain to be tested.

Northwest-southeast (left to right, please see map above) long section through the newly discovered Bighorn high-grade zone, Santa Fe Project, Mineral County, Nevada. The grade shell adjacent to the Bighorn high-grade zone is based upon modeling historic drilling. Drill hole SF21-006c has intercepted new gold and silver mineralization in both the hanging-wall (above) and the footwall (below) the grade shell, greatly expanding the resource potential of this part of the Santa Fe Project.

Phase 1E consists of two drill holes, totaling 518.2 metres, which were completed in late 2021. These drill holes targeted northwest and down-dip step outs from known gold and silver mineralization along the Santa Fe fault. Highlights include:

  • • SF21-014R: This RC drill hole is located approximately 350 metres northwest of the newly discovered Big Horn high-grade zone and intercepted yet another area of high-grade gold mineralization: 25.9 metre interval grading 20.36 gpt Au (please see table and map below). This newly discovered high-grade zone, called “Bonanza”, has set a new standard with the highest-grade Au assays in project history: 4.6m grading 112.3 gpt Au. The Company has now identified three distinct high-grade gold zones along nearly 800 metres of strike length on the Santa Fe fault that remain open at depth and to the northwest.
  • • SF21-009R: This hole was drilled from the same site as SF21-014R and intercepted shallow transition and oxide gold mineralization: 1m grading 1.07 gpt Au, expanding the envelope of oxide and transition mineralization in this corner of the Santa Fe pit and producing new targets for further step-out drilling.
*Notes: Au Eq equals Au (gpt) + (Ag gpt/75). Metallurgical recovery has not been factored as insufficient test-work is available to determine potential Ag recoveries. True thickness of the intercepts shown above are estimated to be 80-90% of the drilled interval. Assays shown above are uncapped.

The upper portion of SF21-014R and -009R both intercepted shallow oxide and transition mineralization expanding the envelope of oxide and transition mineralization in this corner of the pit and produce new targets for further step-out drilling (please see cross section below).

The discovery of a third high-grade zone, with the highest gold grades seen to date at Santa Fe, is a significant development for the Company. Potential future mining of these high-grade zones requires that significant tonnages must be discovered, with three distinct high-grade zones already identified, rock volumes in these zones continue to grow.  It should be noted that the high-grade intercepts in SF21-014R are approximately 140 metres below the bottom of the Santa Fe pit and therefore easily accessible (please see cross section below).  In the Bonanza high-grade zone, two previous drill holes were drilled above the high-grade zone and missed the target, highlighting the value of “deeper” drilling.

Drill hole location map and distribution of high-grade zones (red ovals), Santa Fe pit area, Santa Fe Project, Mineral County, Nevada. Bright green drill hole traces are those reported here, line of cross section is shown.
Cross section through RC drill holes SF21-014R and 009R, Santa Fe pit area, Santa Fe Project, Mineral County, Nevada.

To the northwest, outside of the pit, additional structural targets have been developed, in search of the next high-grade zone along the Santa Fe fault (please see map above).  In this area, termed the “Atchison” target, high grade surface rock-chip samples and historic soil sampling highlight another structural intersection between easterly and northwest-trending faults.  Drilling of this potential high-grade target is planned for this summer.

Phase 1F consists of three drill holes, totaling 552 metres, that were completed in late 2021 and targeted down-dip extensions of oxidized gold and silver mineralization along the Calvada fault. Historic drilling in this area outlined significant potential oxide resources.  Highlights include:

  • • 21.0 metres grading 0.89 gpt Au and 2.7 gpt Ag (0.93 gpt Au Eq) of oxidized mineralization in drill hole CAL21-007C confirming oxidized precious metal mineralization over a vertical range of over 150 metres (please see cross section and table below).
  • • 32.1 metres grading 0.54 gpt Au and 3.7 gpt Ag (0.58 gpt Au Eq) starting at a vertical depth of only 60 metres in drill hole CAL21-006C.

These three drill holes intercepted shallow, oxidized gold and silver mineralization along the Calvada fault zone, an east-west trending structure that links the previously mined Slab and Calvada pits (please see map below).  Gold and silver mineralization crops out on the surface and now has been traced down-dip over a vertical range of almost 200 metres; mineralization remains open at depth.

Drill hole CAL2-004C, 107.7 to 108.5m (353.5-356.0 feet); 0.8 metres grading 0.92 gpt Au, 1.3 apt Ag (0.94 gpt Au Eq). Gold and silver mineralization is hosted by brecciated, leached, and oxidized limestone.
Drill hole location map, Slab-Calvada pit area, Santa Fe Project, Mineral County, Nevada. Core drill holes CAL21-004C, 006C, and 007C are highlighted in green. All 2021 drill results have now been received and reported for this area.
*Notes: Au Eq equals Au (gpt) + (Ag gpt/75). Metallurgical recovery has not been factored as insufficient test-work is available to determine potential Ag recoveries. True thickness of the intercepts shown above are estimated to be 85-95% of the drilled interval.
*Notes: Au Eq equals Au (gpt) + (Ag gpt/75). Metallurgical recovery has not been factored as insufficient test-work is available to determine potential Ag recoveries. True thickness of the intercepts shown above are estimated to be 85-95% of the drilled interval.

South-north (left to right, please see map above) cross section through drill holes CAL21-004C and -007C in the Calvada Fault zone, Santa Fe Project, Mineral County, Nevada.  The grade shell outlining gold and silver mineralization (shown in pink above) is based upon modeling historic drilling, projected into the line of the cross section, now confirmed by Lahontan drilling.

*Notes: Au Eq equals Au (gpt) + (Ag gpt/75). Metallurgical recovery has not been factored as insufficient test-work is available to determine potential Ag recoveries. True thickness of the intercepts shown above are estimated to be 85-95% of the drilled interval.

South-north (left to right, please see map above) cross section through drill hole CAL21-006C in the Calvada Fault zone, Santa Fe Project, Mineral County, Nevada.  The grade shell outlining gold and silver mineralization (shown in pink above) is based upon modeling historic drilling, projected into the line of the cross section, confirmed and expanded by Lahontan drilling.

Phase 1G consists of eight drill holes, totaling 2,614 metres, are the final RC holes from the 2021 drilling campaign. These drill holes targeted down-dip plus northwest and southeast step outs from known gold and silver mineralization along the Santa Fe fault. Highlights include:

  • SF21-015R and -016R: These two RC drill holes targeted expansion of known mineralization in the high-wall of the Santa Fe Pit between the Bonanza and Big Horn zones and were collared approximately 120 metres northwest of SF21-007R (please see map below). SF21-015R cut 138.6m grading 1.01 gpt Au and 3.4 gpt Ag (1.06 gpt Au Eq) while SF21-016R intercepted 102.1m grading 0.69 gpt Au and 1.7 gpt Ag (0.71 gpt Au Eq). These drill holes expand potential resources in this portion of the Santa Fe pit and define the extent of transitional mineralized rock.
Cross section through all 2021 Lahontan drill holes in the Santa Fe pit area. The 2021 drilling campaign was extremely successful in expanding the volume of gold and silver mineralization in areas adjacent to 0.17 gpt grade shell defined by previous drilling (shown in red above). Note how Lahontan drilling has opened-up potential new gold and silver resources, especially in the newly discovered high-grade zones and deeper portions of the BH zone.
Cross section through RC drill holes SF21-007R, SF21-008R, and SF21-015R through -018R, Santa Fe pit area, Santa Fe Project, Mineral County, Nevada. These drill holes greatly expand the volume of gold and silver mineralized rock adjacent to the 0.17 gpt Au grade shell defined by historic drilling (pink outline).

Central Santa Fe Pit Drill Holes: As noted above, RC drill holes, SF21-007R, -008R, -015R through -18R targeted expanding potential resources in the central portion of the Santa Fe pit by stepping out into the pit high-wall. While SF21-008R was lost above the intended target, previously reported drill hole -007R intercepted what may be the edge of more high-grade mineralization: 1.5m grading 3.50 gpt Au and 61.9 gpt Ag (4.33 gpt Au Eq, 240.8 – 242.3m). Drill holes SF21-015R and -016R successfully expanded the volume of transition mineralization between the Big Horn and Bonanza high-grade zone (please see cross sections above). Based on the silver grades, it appears that drill holes SF21-015R and -016R drilled the margins of the Big Horn high-grade zone, confirming tonnage potential of this important high-grade target. Of note, SF21-007R, -015R and -018R all bottomed in mineralized rock, emphasizing that the Santa Fe deposit remains open at depth.

South-Southeast Extension of the Santa Fe Pit: RC drill holes SF21-010R through -013R were drilled to further define the boundaries between transition mineralization and fresh rock south-southeast of the Santa Fe pit. All four drill holes intercepted significant widths of mineralized material and confirmed suspected boundaries of the metallurgical domains in this area.

*Notes: Au Eq equals Au (gpt) + (Ag gpt/75). Metallurgical recovery has not been factored as insufficient test-work is available to determine potential Ag recoveries. True thickness of the intercepts shown above are estimated to be 80-90% of the drilled interval
Drill hole location map, Santa Fe pit area, Santa Fe Project, Mineral County, Nevada. Bright green drill hole traces are those reported here, black traces were previously reported holes. The high-grade Bonanza, Big Horn and BH zones are outlined and remain open down-dip and along strike. Line of long section is shown.

Early in 2022, Lahontan completed its Phase 2A campaign exploring the Slab-Calvada pit area. The seven drill holes, totaling 1,710 metres, targeted down-dip extensions of oxidized gold and silver mineralization along the Calvada fault and northerly step-out drilling from the Slab pit. Historic drilling in both areas had outlined significant potential oxide and transition domain resources.  Highlights include:

  • • 25.9 metres grading 2.55 gpt Au and 3.4 gpt Ag (2.60 gpt Au Eq) of oxide and transition metallurgical domain mineralization in drill hole CAL22-006R. This is the farthest north step-out drill hole from the Slab pit, with gold mineralization starting at a depth of only 68.6 metres down-hole (please see map and table below).
  • • 47.2 metres grading 0.78 gpt Au and 1.3 gpt Ag (0.80 gpt Au Eq) in drill hole CAL22-002R including 32.0 metres grading 1.04 gpt Au and 1.4 gpt Ag (1.06 gpt Au Eq) of oxidized mineralization down-dip along the Calvada fault, further expanding the envelope of oxide gold mineralization along this important structure (please see map, cross section, and table below).
Drill hole location map with reduced to pole residual magnetics, Slab-Calvada pit area, Santa Fe Project, Mineral County, Nevada.

As can be seen in the drill hole location map above, our drone magnetic survey data clearly outlines a magnetic low extending north from the Slab pit.  Lahontan’s Phase Two drilling confirms that gold and silver mineralization extends at least 200 metres north of the pit at shallow depths.  The magnetic data supports multiple drilling targets north and northwest of the Slab pit as well as along the Calvada fault, highlighting the large resource potential of the Slab-Calvada area.

*Notes: Au Eq equals Au (gpt) + (Ag gpt/75). Metallurgical recovery has not been factored as insufficient test-work is available to determine potential Ag recoveries. True thickness of the intercepts shown above are estimated to be 85-95% of the drilled interval.

South-north (left to right, please see map above) cross section through drill holes CAL21-004C, -007C, and new drill hole CAL22-002R in the Calvada fault zone, Santa Fe Project, Mineral County, Nevada.  The grade shell outlining gold and silver mineralization (shown in pink above) is based upon modeling historic drilling; CAL22-002R greatly expands oxide gold mineralization at depth and confirms the potential for deeper resource expansion drilling along the Calvada fault.

The four drill holes, totaling 883 metres, targeted down-dip extensions of oxidized gold and silver mineralization east and northeast of the Slab pit. Past mining and historic drilling had outlined significant potential oxide and transition domain resources east of the Slab pit that remained open down dip from the pit. Highlights include:

  • • 32.0 metres grading 0.50 gpt Au and 7.9 gpt Ag (0.60 gpt Au Eq) of oxide and transition

metallurgical domain mineralization in drill hole CAL22-010R including 10.7 metres grading 0.93 gpt Au and 18.7 gpt Ag (1.18 gpt Au Eq). This drill hole, coupled with earlier Lahontan drill results, confirms a major easternly extension of previously mined gold and silver mineralization seen in the Slab pit, extending mineralization at least 350 metres down dip at shallow levels (please see cross section, location map, and table below).

West-East (left to right, please see map below) cross section through drill holes CAL21-005C, CAL22-001R, and new drill hole CAL22-010R east of the Slab pit, Santa Fe Project, Mineral County, Nevada. The interpreted 0.2 gpt Au grade shell greatly expands oxide and transition domain gold mineralization east of the Slab pit and confirms the potential for additional shallow gold and silver mineralization east of the Slab pit.
Drill hole location map with reduced to pole residual magnetics, Slab-Calvada pit area, Santa Fe Project, Mineral County, Nevada.

Important take-aways from these drill results include the further confirmation that gold and silver mineralization occurs in areas that are characterized as a magnetic low. As can be seen in the drill hole location map above, there are extensive areas with a low intensity magnetic signature that remain untested by drilling that could host potential resources in the Slab-Calvada area. The drill results table below also highlights an important characteristic of mineralization east and northeast of the Slab pit: higher silver grades. The silver content is significant and could positively impact potential mining operations at Santa Fe.

*Notes: Au Eq equals Au (gpt) + (Ag gpt/75). Metallurgical recovery has not been factored as insufficient test-work is available to determine potential Ag recoveries. True thickness of the intercepts shown above are estimated to be 90-95% of the drilled interval.

The five drill holes, totaling 1,111 metres, are the final drill holes of the Company’s Phase Two drilling campaign.  The drill holes targeted down-dip extensions of oxidized gold and silver mineralization east and northeast of the Slab pit. Past mining and historic drilling had outlined significant potential oxide and transition domain resources east of the Slab pit that remained open down dip from the pit.  Highlights include:

  • • 32.0 metres grading 0.59 gpt Au and 4.4 gpt Ag (0.65 gpt Au Eq) of oxide and transition metallurgical domain mineralization in drill hole CAL22-016R including 6.1 metres grading 1.18 gpt Au and 14.4 gpt Ag (1.37 gpt Au Eq). This drill hole, coupled with earlier Lahontan drill results, shows that gold and silver mineralization extends in an easterly direction from the Slab pit across a post-mineral fault, opening a large area for resource expansion. (Please see cross section, location map, and table below).
  • • 62.5 metres grading 0.33 gpt Au and 2.6 gpt Ag (0.36 gpt Au Eq) of oxide mineralization in drill hole CAL22-015R including 6.1 metres grading 1.04 gpt Au and 1.4 gpt Ag (1.06 gpt Au Eq). This drill hole extends shallow gold and silver mineralization from the southeast corner of the Slab pit, expanding resource potential.
West-East (left to right, please see map below) cross section through drill holes CAL21-001C, CAL22-009R, and new drill hole CAL22-016R east of the Slab pit, Santa Fe Project, Mineral County, Nevada. The interpreted 0.2 gpt Au grade shell (cross-hatched) shows the stacked nature of the mineralization and greatly expands oxide and transition domain gold mineralization east of the Slab pit and across a prominent post-mineral fault. The drilling confirms the potential for additional shallow gold and silver mineralization north and east of the Slab pit.
Drill hole location map with reduced to pole residual magnetics, Slab-Calvada pit area, Santa Fe Project, Mineral County, Nevada
*Notes: Au Eq equals Au (gpt) + (Ag gpt/75). Metallurgical recovery has not been factored as insufficient test-work is available to determine potential Ag recoveries. True thickness of the intercepts shown above are estimated to be 90-95% of the drilled interval.

• The Pinnacle target area is host to a large (2,500 by 500m) zone of intense hydrothermally altered and gold mineralized Miocene volcanic rock.

• The system is defined by gold in-soil anomalies and rock chip samples grading up to 6.6 gpt Au associated with northwest trending structures.

• The target is on strike with the Isabella Pearl open pit gold mine operated by Fortitude Gold.

• The Isabella Pearl mine has P&P Reserves of 2.3M tonnes grading 3.05 gpt Au, 18 gpt Ag (220,100 oz Au, 1.2M oz Ag). The higher grade Pearl zone averages over 4 gpt Au.

• Fortitude Gold reported 2021 production over 45,000 ounces Au, and projects  LOM cash costs of US$650/ oz Au, excellent heap leach recoveries (>81%).

• The Pinnacle target is contiguous with the Isabella Pearl and shares a nearly identical geologic setting and has not been drilled: an excellent opportunity to add resource ounces to the Santa Fe Project.