- York Claims acquisition adds 2.1 km² of strategic mineral rights directly adjacent to existing gold resources, enabling significant pit expansion beyond current property boundaries
- Resource modeling from recent PEA demonstrates gold-silver mineralization extends into newly acquired territory, positioning Lahontan for substantial resource growth
- Transaction structure combining cash, equity, and royalty terms reflects disciplined capital allocation while securing immediate operational advantages
Mining companies pursuing growth face a fundamental choice: expand through exploration risk or consolidating proven ground adjacent to existing resources. While exploration offers discovery potential, strategic land acquisition near established mineralization provides more predictable pathways to resource expansion with lower geological risk.
Lahontan Gold (TSX.V: LG) (OTCQB: LGCXF) executed precisely, announcing the acquisition of 27 unpatented lode mineral claims directly south of its York pit at the Santa Fe Mine project. The York Claims acquisition represents textbook district consolidation, securing ground that resource modeling indicates contains extensions of known gold-silver mineralization.
Removing Property Boundary Constraints Enables Pit Optimization
The York Claims transaction addresses a critical limitation that constrained Lahontan’s recent Preliminary Economic Assessment: property boundaries that artificially restricted pit shell optimization. Resource modeling completed during the PEA demonstrated that gold-silver mineralization extended beyond Lahontan’s property limits, creating a scenario where economic ore remained inaccessible due to land ownership rather than geological constraints.
“The newly acquired claims will allow a considerable layback of the York pit during mine planning and in mineral resource estimation,” noted CEO Kimberly Ann. “With the addition of the York Claims, that pit can be greatly expanded, potentially adding resource ounces plus opening up compelling targets for further gold and silver mineral resource expansion.”
The acquisition eliminates these artificial constraints, enabling pit designers to follow mineralization patterns rather than property lines. This optimization can result in improved strip ratios, enhanced ore recovery, and extended mine life compared to boundary-constrained operations.
Transaction Structure Balances Growth with Capital Discipline
Lahontan structured the York Claims acquisition through a combination of immediate payments, deferred obligations, and long-term royalty arrangements that demonstrate thoughtful capital allocation. The $10,000 term sheet payment and subsequent $50,000 promissory note with 2 million shares provide Emergent Metals with immediate consideration while preserving Lahontan’s cash resources for development activities.
The 1% Net Smelter Return royalty creates ongoing value sharing while providing Lahontan with buyback options at $500,000 within three years or $1,000,000 between years three and seven. This structure reflects the realities of junior mining finance, where cash conservation remains paramount while securing strategic assets.
Resource Expansion Potential Enhances Development Economics
Beyond removing pit design constraints, the York Claims acquisition opens additional exploration targets that could substantially increase Lahontan’s 2-million-ounce Santa Fe resource base. Resource expansion carries particular importance for heap leach operations like Santa Fe, where economies of scale directly impact operating costs and project returns.
The Walker Lane district’s geological characteristics support this expansion potential, with mineralization typically occurring in connected systems rather than isolated deposits. Lahontan’s systematic approach to consolidating surrounding claims positions the company to capitalize on these geological relationships.
Regional Context Supports Strategic Timing
The York Claims acquisition occurs within Nevada’s broader consolidation trend, as companies recognize the value of controlling contiguous land packages in proven districts. The timing proves advantageous as gold prices remain elevated and domestic production gains strategic importance under current policies.
The acquisition integrates seamlessly with Lahontan’s existing development timeline, as permitting activities continue progressing toward the targeted early 2027 production start. The expanded property position strengthens permit applications by demonstrating comprehensive resource control and long-term development potential.
CEO Kimberly Ann’s experience navigating complex transactions positions Lahontan to execute both the land acquisition integration and broader development strategy effectively. The consolidation of strategic ground adjacent to established resources represents fundamental mining industry best practices, removing artificial constraints while creating pathways for organic growth.
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 ibn.fm/LGCXF
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