Junior Explorer Finds Massive Gold Grades Through Artisanal Miners 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 Corp., Barrick Mining Corp., and Anglogold Ashanti Plc.
3. Steve Sobek 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) announced results from a recent grab sampling effort conducted at several active artisanal mining sites within its fully owned Tembo Project in northwestern Tanzania, as per a December 18 release.

The ongoing artisanal operations across the license area have highlighted several key targets, with grab samples showing high-grade gold values reaching up to 35.45 grams per tonne gold (g/t Au). This sampling initiative aimed to assess gold mineralization associated with current artisanal mining activities within the company's granted mining licenses and to refine drill targets in anticipation of the upcoming Q1 2026 drilling campaign.

"The level of artisanal activity we're witnessing across Tembo is very encouraging and highlights several areas that have not been adequately tested by drilling in the past," said Lake Victoria Exploration Manager Hendrick Mering. "We now have multiple new targets that we're eager to get back on the ground to drill, and these results reinforce our view that Tembo hosts a large, structurally controlled gold system with significant exploration potential."

A total of eight active artisanal mining locations were visited and sampled. Grab samples were collected from exposed mineralized material at the surface and within shallow workings, the company stated. Two of the sampled sites are newly identified areas, while two others align with targets defined through earlier drilling programs, several of which have experienced limited or non-systematic drilling to date. Notable results include:

• Ngula 1: Up to 35.45 g/t Au and 12.94 g/t Au, confirming high-grade mineralization at LVG's primary Tembo target and reinforcing its priority status for imminent drilling.
• Ngula 2: Grab samples returning 35.21 g/t Au, 10.27 g/t Au, and 10.30 g/t Au, corroborating historical artisanal and exploration findings.
• Mgusu Target: Previously under-drilled area yielding values of 5.90 g/t Au, identifying a compelling new priority target.
• Nyangomango: Newly identified artisanal workings returning 7.86 g/t Au and 8.50 g/t Au.
• Nyakagwe East: Renewed artisanal activity returned 22.68 g/t Au and 3.16 g/t Au, supporting extensions of known mineralization to the northwest.

New Priority Drill Targets Identified

Gold mineralization observed at sites with elevated values is consistently associated with smokey-grey quartz veins within sheared basalts, featuring visible pyrrhotite and pyrite sulfides, the release noted. Active artisanal workings align with multiple structural trends, including northeast, northwest, and east-west orientations, in line with the company's established structural interpretation for the Tembo license area.

Based on these findings, the company stated it has pinpointed three priority drill targets that have not previously received sufficient drill coverage and require systematic follow-up. The artisanal workings in the project area are consistently covered by 4-10 meters of transported alluvium. They are invariably linked with linear magnetic anomalies trending east-west, northwest, or northeast. This highlights the potential of the licenses along these trends with gold mineralization associated with all three directions.

With the aim of advancing toward near-term production, LVG announced plans to implement a closely spaced drilling program at Ngula 1, concentrating on a 300- to 400-meter strike length that has consistently delivered high-grade results in both historical drilling and artisanal sampling.

The company previously announced a non-binding letter of intent with Nyati Resources Limited regarding potential gold processing arrangements at the Tembo Project. Building on this LOI, the Company is currently engaged in advanced discussions with Nyati about the potential utilization of the full capacity of an existing 500 tonne-per-day carbon-in-pulp processing plant located on one of LVG's mining licenses. These discussions aim to establish a toll-processing arrangement that could pave the way for near-term production from the Tembo Project, contingent upon the completion of confirmatory drilling, permitting, and the execution of a definitive agreement.

The company stated it aims to finalize a binding agreement in early 2026. The planned drilling program is expected to commence in Q1 2026.

"With an LOI in place with Nyati, our focus has shifted decisively toward execution," said President and Chief Executive Officer Marc Cernovitch. "We are moving from exploration to execution. The high-grade samples at surface confirm the system's potential, while our engagement with Nyati Resources offers a tangible path to process that material. Our focus is squarely on defining the resource at Ngula 1 and finalizing a processing agreement that leverages existing infrastructure to minimize capital output."

Analyst: Nation Ranks as 4th-Largest Gold Producer Globally

As per a research note by Red Cloud Securities Analyst Alina Islam dated Nov. 27, the company revealed initial results from the ongoing drilling campaign at its advanced-stage Imwelo gold project in northwestern Tanzania, which have expanded mineralization beyond the existing pit shell. "Management is working to get this fully permitted project into production," Islam wrote.

At the time of Islam's report, Lake Victoria Gold was trading at around CA$0.17 per share (CA$0.17/share), the analyst noted. "Advancing Imwelo towards start-up to generate cash flows and successful exploration at Tembo should drive the stock price," Islam wrote. 

Tembo is another of Lake Victoria Gold's projects, located in the Lake Victoria Goldfield, also in northwestern Tanzania. Currently, Red Cloud does not have a rating or target price on the Canadian junior miner.

Islam pointed out that Tanzania is the fourth-largest gold producer in the world. The two largest producers with operations there are AngloGold Ashanti Ltd. (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) and Barrick Mining Corp. (ABX:TSX; B:NYSE). In fact, Imwelo is only 12 kilometers to the west of AngloGold's Geita gold mine, the largest producing gold mine in the country.

The Catalyst: Gold's Most Significant Surge in Decades

Gold prices remained stable on Thursday as traders digested key U.S. inflation data and a series of major central bank decisions, Peter Nurse reported for Investing.com on December 18. At 09:15 a.m. ET, spot gold slipped 0.1% to US$4,336.54 per ounce, and gold futures for February also fell by 0.1% to US$4,370.30 per ounce.

Metal markets saw some profit-taking after a sharp rally over the past week due to increasing uncertainty about the U.S. economy, particularly as official government reports provided mixed signals regarding the labor market, Nurse noted. The Federal Reserve’s asset purchasing activities also raised some questions about market liquidity in the country.

Despite this, U.S. inflation increased less than expected in November but remained above the Federal Reserve's target, as the initial set of price data was released following the end of the government shutdown in mid-November. According to the Bureau of Labor Statistics (BLS) on Thursday, the U.S. consumer price index in November rose by 2.7% year-over-year, down from the 3.0% figure reported in September and below the anticipated 3.1% growth.

As reported by Reuters on December 17, gold has seen its most significant rise since the 1979 oil crisis in 2025, with prices doubling over the past two years, a performance that might have previously led to predictions of a major correction.

However, an expanding pool of investors and factors ranging from U.S. policy to the conflict in Ukraine have prompted analysts at JP Morgan, Bank of America, and consultancy Metals Focus to now predict gold reaching US$5,000 per ounce in 2026, Reuters noted.

BofA strategist Michael Widmer pointed out that expectations of further gains or portfolio diversification are driving the buying, influenced by U.S. fiscal deficits, efforts to narrow the U.S. current account deficit, and a weak dollar policy, the report stated.

Philip Newman, managing director at Metals Focus, added that additional support comes from concerns about the independence of the U.S. Federal Reserve, trade disputes, and geopolitical issues, including the war in Ukraine and Russia's interactions with NATO countries in Europe.

Ownership and Share Structure¹

Approximately 28% is owned by management and insiders, institutions hold 15%, shares issued for the acquisition of Imwelo account for 12.3%, the TAIFA Group owns 8.2%, and Barrick Mining Corp. (ABX:TSX; B:NYSE) holds 3%. The remainder 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%.

The company's market cap is CA$39.03 million. It has 195.16 million shares outstanding, according to the company, and trades in a 52-week range of CA$0.13 to CA$0.25.