Deep Gold and Higher Grades: New Drill Results Redraw the Map in Tanzania

1. Lake Victoria Gold Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Lake Victoria Gold Ltd. and Barrick Mining Corp.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Lake Victoria Gold Ltd. (LVG:TSX; LVGLF:OTCQB; E1K:FSE) reported additional results from its 4,000-meter drill program at the fully permitted Imwelo Gold Project in northern Tanzania. The latest assays from nine holes confirm the continuation of the primary mineralized zone below the current pit design and expand the resource footprint laterally to the east and west.

The ongoing program, which utilizes reverse circulation (RC) pre-collars and diamond-core tails, is designed to support pit-shell optimization, metallurgical studies, and evaluation of potential underground development. Highlights from the latest results include 9.31 grams per tonne (g/t) gold over 2.45 meters in hole IMWDR013, and 11.19 g/t gold over 0.90 meters in hole IMWDR017, with some intercepts reaching grades above 20 g/t over shorter intervals.

According to the company, drilling has now demonstrated geological continuity to more than 250 meters vertical depth, surpassing the historical model limit of 200 meters. Average hole depth in this campaign exceeds 120 meters, more than double the 50-meter average of prior programs. New mineralization was also confirmed beyond the eastern pit margin and to the west of an interpreted fault structure, suggesting resource expansion potential on both flanks of the current design.

Marc Cernovitch, President and CEO, stated in the press release, "These results continue to validate our thesis for Imwelo. We are seeing meaningful extensions of mineralization both at depth and laterally beyond the current pit design."

Exploration Manager Hendrick Mering added that the assays confirm quartz veining and structural continuity observed in core, particularly with the resource remaining open beyond 250 meters vertically and expanding along strike.

The Imwelo Gold Project, located 12 kilometers from AngloGold Ashanti's Geita Gold Mine, is fully permitted with a 10-year renewed mining license. The current program aims to improve confidence in shallow mineralization for potential resource conversion, collect geotechnical data for final pit designs, and support metallurgy and grade control ahead of early mining operations.

Lake Victoria Gold has completed 16 of 24 planned drill holes, with additional assays pending. The company has also reported that all results passed QAQC protocols conducted by MSA Laboratory in Geita.

Gold Sector Sees Strong Tailwinds From Global Demand and Inflation Hedging

On December 12, Jonny Haycock reported that Alasdair Macleod, Strategic Advisor to VON GREYERZ, raised concerns about tightening conditions in the physical silver market and suggested that China may hold significantly more gold than current estimates indicate. Macleod also noted that rising government bond yields could serve as a warning signal for broader market instability, potentially fueling renewed interest in precious metals. He emphasized that deteriorating liquidity in physical metals markets could be a key driver of future price movements.

Also on December 12, Kitco News reported that gold investment demand in India rose to over US$10 billion in the third quarter, marking a 67% increase in value terms compared to the previous year. According to Sachin Jain, CEO of India operations at the World Gold Council, investment demand reached 91.6 tonnes and accounted for 40% of total gold consumption through the first nine months of the year, the highest proportion on record. Jain stated, "We believe investors' interest in gold will continue and grow in the coming quarters." The report also highlighted that Indian pension funds are now permitted to allocate up to 5% of their assets under management to gold and silver ETFs, following new guidelines issued by the Pension Fund Regulatory and Development Authority.

According to a December 15 analysis by Simon White of Bloomberg, "the bull market in gold should remain intact," supported by strong central bank demand and a broader market shift toward real assets. White wrote that emerging market central banks had more than doubled their gold reserves since the global financial crisis and accelerated purchases following the Russia-Ukraine conflict. He observed that "gold serves as an unimpeachable asset, insulated from the financial system," and added that developed-market central banks could also begin accumulating reserves due to mounting concerns over fiat currency debasement. He concluded that gold, silver, and other real assets were gaining traction as a hedge against both inflation and systemic risk.

Analysts Highlight Strong Drill Results and Development Progress at Imwelo

On November 27, Red Cloud Securities Analyst Alina Islam reported that initial results from Lake Victoria Gold Ltd.'s 4,000-meter drill program at the Imwelo Gold Project extended mineralization beyond the current pit shell. Islam stated that results confirmed "further potential in the footwall and hanging wall," and emphasized that the program was designed to convert and grow resources in Area C, the first planned production zone. Two highlight intercepts from the first six holes included 2.56 meters of 6.96 grams per tonne (g/t) gold and 1.33 meters of 11.88 g/t gold.

Islam noted that the average gold grade from the initial six holes was 2.83 g/t, consistent with historical drilling at the site, and that new depths being tested may indicate "upside to the tonnage." She also highlighted that most historical drilling at Imwelo, totaling approximately 28,000 meters, was conducted to depths of only about 100 meters. In contrast, the current program has demonstrated deeper mineralization, providing a broader understanding of the resource potential.

According to Islam, Lake Victoria Gold was working to advance the fully permitted Imwelo project toward production. She reported that the company aimed to begin output at 12,000 ounces of gold per year, with plans to ramp up to 24,000 ounces annually at an estimated all-in sustaining cost (AISC) of US$1,400 per ounce. Islam further highlighted that the company had secured a non-binding prepaid forward sales agreement for 7,000 ounces of gold with Monetary Metals and was eligible to receive an additional CA$3.84 million in equity funding through a second tranche of its agreement with Taifa Group.

Regarding corporate positioning, Islam reported that the company had a market capitalization of approximately CA$33.2 million and a 52-week trading range between CA$0.13 and CA$0.25 per share at the time of publication. While Red Cloud did not provide a rating or price target, Islam concluded that "advancing Imwelo towards start-up to generate cash flows and successful exploration at Tembo should drive the stock price."

The analyst also pointed to the company's progress at Tembo, where Lake Victoria Gold had signed a letter of interest with Nyati Resources to evaluate near-term production using a 500-ton-per-day gold processing plant. Additional exploration results from both Tembo and Imwelo, along with a forthcoming mineral resource estimate and prefeasibility study in 2026, were identified as key developments to watch.

Progress Beneath the Surface: Key Catalysts Driving Imwelo Forward

Lake Victoria Gold is targeting a near-term production scenario at the Imwelo Gold Project, underpinned by its recent acquisition and development initiatives. According to the company's investor presentation, the project was acquired for CA$5.5 million in equity and is fully permitted for construction. Historical drilling totals 28,000 meters, and recent resource modeling is being updated to reflect new data from the ongoing 4,000-meter drill program.

The company plans to begin with open-pit production in Area C, targeting 12,000 ounces of gold per year, with a ramp-up to 24,000 ounces by the third year of operations. All-in sustaining costs (AISC) are estimated at approximately US$1,400 per ounce. Engineering and processing plant designs are complete, with current capital expenditure estimated at US$15.03 million.

To support project execution, Lake Victoria Gold has signed a term sheet for a 7,000-ounce gold prepay facility and is in advanced discussions with local lenders for a financing package, including US$10 million in senior debt, a cost overrun facility, and a working capital line.

Additionally, Taifa Mining, Tanzania's largest mining contractor, will perform all civil works and contract mining for Imwelo. Taifa's involvement brings decades of experience and equipment resources, further de-risking execution and development. 

Ownership and Share Structure¹

About 28% is owned by management and insiders, institutions own 15%, shares issued for the acquisition of Imwelo include 12.3%, the TAIFA Group owns 8.2%, and Barrick Mining Corp. (ABX:TSX; B:NYSE) owns 3%. The rest is retail.

Top shareholders include AIMS Asset Management with 8.76%, Rostam Aziz with 8.2%, Simon Charles Benstead with 7.47%, Concept Capital Management Ltd. with 5.83%, and Walter David Scott with 3.08%.

Its market cap is CA$34.21 million. It has 195 million shares outstanding, according to the company, and trades in a 52-week range of CA$0.13 and CA$0.25.