Lahontan Gold: Profit-Taking Creates A New Opportunity!

Top-Notch Infrastructure and Famous Neighbours

The southwestern US state of Nevada is one of the world's largest gold producers. It is home to a whole host of so-called Tier-1 assets—gold mines that produce several hundred thousand ounces per year. Leading this phalanx of gold miners is the Nevada Gold Complex, the joint venture between Barrick Mining and Newmont. Yet, along the three major mineralization trends in this often bone-dry region, there is plenty of room for young companies like Lahontan Gold. The Canadians are currently conducting extensive exploration at the historic Santa Fe Mine on the Walker Lane Trend. Precious metals were previously mined here by Corona Gold Inc. between 1988 and 1995. A total of 359,202 ounces of gold and 702,067 ounces of silver were mined via open-pit mining during this period. Gold grades in the immediate vicinity of the mine were around 1.0 gram per ton at the time. However, higher grades were also achieved in satellite deposits. Background: Since the rock here can be processed cost-effectively via heap leaching, grades of 1 gram and higher are considered extremely high and economically viable for open-pit mining. Furthermore, the infrastructure in this region is considered excellent. Nevada is an established mining jurisdiction and one of the best in the world. Consequently, the necessary infrastructure is in place here: from skilled workers to energy and roads—for instance, Highway 95 runs directly across Lahontan Gold's property.

Multi-Pronged Drilling Program: Labour-Intensive 2026

The current exploration year, 2026, is extremely labour-intensive for Lahontan's management. Having secured financing, the company is pursuing a multi-pronged strategy. Consequently, the drilling program is currently divided into two main areas. The drilling program on the historic heap leach pads will begin in the spring of 2026 and will focus not on solid rock underground but on near-surface, old mine tailings. This involves so-called sonic drilling, which uses high-frequency sound waves (vibrations) to enable very precise sampling. The material is already crushed and lies on the surface, so no "stripping" (removal of waste rock) is required. If the grades are right, this material can be reactivated cost-effectively to generate rapid cash flow for the planned production start in 2027.

In addition, a classic RC and core drilling program is underway to expand the resource. The existing resource of over 1.9 million ounces of gold equivalent is expected to be increased as a result. The focus is on several satellite deposits such as West Santa Fe, where, for example, sections yielding 3.11 grams of gold per ton over 41 m were discovered directly from surface in early 2026. Since new zones were also identified in the previous drilling program, the deposit's potential is far from exhausted.

New Resource Estimate and Preliminary Economic Assessment (PEA)

This year, in addition to the drilling results, the new resource estimate is likely to be the main driver for the stock. This will also be accompanied by a new Preliminary Economic Assessment (PEA). The previous analysis, dated December 2024, projected annual gold production of 70,000 to 80,000 ounces starting in 2027/2028. The mine life was estimated at eight years, and cash costs were expected to be below USD 1,300 per ounce. While costs have likely risen in the meantime, the calculations at the time were based on a gold price of USD 1,950. Today, it is trading well above USD 4,000.

Technical Analysis Offers Opportunities

The stock is currently also worth a closer look from a chart perspective. Since the beginning of 2025, the share price has increased twentyfold. However, it was trading at around 2 cents back then. Today, Lahontan Gold has a market capitalization of around CAD 160 million—it is no longer a micro-cap, but not quite a market giant either! The chart currently appears to offer a potential entry opportunity. Overall, the stock remains in a medium-term uptrend, supported by drilling results and strength in the gold price. Following the aforementioned rally, however, a technical consolidation has taken place. Recently, there have been repeated profit-taking phases, at times leading to sharp intraday price swings with high trading volumes. It appears that some traders have exited their positions here and realized gains.

Currently, the stock is trading just below the 40-cent mark. The key resistance level is at CAD 0.44. A sustained break above this threshold at the daily closing price would pave the way for a massive follow-through rally toward CAD 0.50 and the 52-week high of approximately CAD 0.52. Such a breakout is typically triggered by positive news from the market or the company (drilling results). On the downside, there is room to fall to CAD 0.35 and further down to CAD 0.28–0.29. Only a slide below these levels would destroy the fundamentally bullish chart pattern.

(image: z-lahontangold_chart caption: Overall, the stock of Lahontan Gold remains in a medium-term uptrend. Source: LSEG (Refinitiv)

In the short term, one could speculate on a breakout in Lahontan Gold, but that would not qualify as a serious investment. Investors with a medium- to long-term horizon may consider using the current price levels to build positions. If Lahontan proceeds as planned and begins production in 2027/28, significantly higher share prices could be achievable. A higher gold price would then provide the ideal supporting backdrop.