Gold Developer Unveils Maiden NI 43-101 Resource for High-Grade Tanzania Project

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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.V; LVGLF:OTCQB; E1K:FSE) announced its first National Instrument 43-101 (NI 43-101) Mineral Resource Estimate (MRE) for the wholly owned Tembo Gold Project in northwestern Tanzania, located directly next to Barrick Mining Corp.'s (ABX:TSX; B:NYSE) Bulyanhulu Mine, according to an August XX release.

The maiden estimate identifies an Inferred Mineral Resource of 13.33 million tonnes at 1.12 grams per tonne (g/t) gold containing 480,100 ounces, along with an Indicated Mineral Resource of 2.69 million tonnes grading 1.16 g/t gold for 99,700 ounces across three near-surface deposits.

Using a 1 g/t cut-off, the resource includes 4.79 million tonnes of Inferred material grading 2.15 g/t gold for 331,700 ounces and 1.07 million tonnes of Indicated material grading 2.00 g/t for 68,600 ounces, highlighting a substantial higher-grade portion of the resource.

Ngula 1 accounts for approximately 56% of the Inferred ounces and 63% of the Indicated ounces, making it the primary target for the company’s planned close-spaced drilling, resource conversion and future mine-planning activities. At the same time, LVG is progressing its previously announced toll-milling initiative with Nyati Resources (T) Limited, which could provide a lower-capital option for processing near-surface material from Ngula 1.

"This maiden resource gives Tembo a defined foundation and a clear next step," a management commentary included in the release said. "The meaningful higher-grade component and concentration of Indicated ounces at Ngula 1 allow us to focus drilling where it can most directly improve geological confidence and support future mine planning, while the broader licence package provides substantial additional exploration opportunity. With Imwelo advancing as our near-term development priority and Tembo now supported by a maiden NI 43-101 resource, LVG is building the disciplined, multi-asset Tanzanian gold company we set out to create."

Details of the Estimate

The maiden MRE moves Tembo beyond a project defined primarily by high-grade drilling results into a resource-backed asset located on granted mining licenses, creating opportunities for further growth and potentially near-term production. Much of the material at Nyakagwe Village and Nyakagwe East remains classified as Inferred, largely due to wider drill spacing, giving the company an opportunity to upgrade resources through targeted infill drilling. LVG said the defined higher-grade component, established tenure, planned Ngula 1 drilling program, and potential Nyati toll-milling route collectively strengthen Tembo’s position as its second defined Tanzanian gold asset alongside the fully permitted Imwelo Gold Project.

The maiden estimate contains 13.33 million tonnes of Inferred resources at 1.12 g/t gold for 480,100 ounces and 2.69 million tonnes of Indicated resources at 1.16 g/t for 99,700 ounces. At a 1 g/t cut-off, the estimate includes 4.79 million tonnes of Inferred resources grading 2.15 g/t for 331,700 ounces and 1.07 million tonnes of Indicated resources grading 2.00 g/t for 68,600 ounces, while a 1.5 g/t cut-off produces 2.27 million tonnes of Inferred material at 3.18 g/t for 232,100 ounces and 0.56 million tonnes of Indicated material at 2.68 g/t for 48,500 ounces.

The company cautioned that these sensitivity figures are not separate Mineral Resource estimates or Mineral Reserves.

Ngula 1 contains an Inferred resource of 8.12 million tonnes grading 1.03 g/t gold for 267,900 ounces and an Indicated resource of 1.78 million tonnes at 1.1 g/t for 62,700 ounces, representing most of the Project’s Indicated ounces. LVG plans to drill approximately 4,000 to 5,000 meters at Ngula 1 on an approximately 20-by-20-meter spacing to strengthen geological confidence, convert resources and inform future mine planning.

The three near-surface deposits — Ngula 1, Nyakagwe Village and Nyakagwe East — fall within conceptual open-pit shells and remain open along strike and at depth. The broader property spans four granted mining licenses next to Bulyanhulu and contains 39 identified exploration targets, while the current MRE covers only three of those target areas.

Ngula 1 extends roughly 600 meters along strike, reaches widths of up to 200 meters and has been drilled to approximately 200 meters depth, while remaining open in both directions.

LVG is also advancing its proposed toll-milling arrangement with Nyati involving a 500-tonne-per-day processing plant on a Tembo license near Bulyanhulu. The proposed facility could provide a lower-capital processing option for near-surface Ngula 1 material, although the initiative remains dependent on confirmatory drilling, permitting, financing and a definitive agreement.

Project Lies in Major Gold-Producing Belt

Tembo lies within Tanzania’s Lake Victoria Goldfield and the Sukumaland greenstone belt, a major gold-producing district that includes Barrick’s Bulyanhulu, AngloGold Ashanti’s Geita and the Buzwagi and Golden Pride mines. LVG believes structural trends associated with Bulyanhulu’s Reef 1 and Reef 2 extend onto its licences and has used the Bulyanhulu geological model to guide exploration.

The company’s next steps and possible catalysts include completing the planned Ngula 1 close-spaced drilling and reporting assay results, using the data to refine its geological model and advance resource conversion and mine planning, and moving the Nyati toll-milling initiative toward definitive documentation and permitting. LVG also plans to reinterpret historical aeromagnetic data, evaluate additional airborne electromagnetic surveying, conduct step-out and target drilling across Tembo, and file the NI 43-101 Technical Report supporting the resource within 45 days of the announcement.

LVG emphasized that it has not completed a preliminary economic assessment, pre-feasibility study or feasibility study for Tembo and has not estimated any mineral reserves.

Analyst Maintains Buy Rating

On July 31, Atrium Research analysts Ben Pirie and Nicholas Cortellucci, CFA, maintained a BUY rating and CA$0.50 price target on the stock, representing an implied 82% upside from the July 31 closing price of CA$0.28. The analysts’ view followed LVG’s announcement that its wholly owned Tanzanian subsidiary, Tembo Gold Ltd., would launch a third-phase land valuation and compensation program at the fully permitted Imwelo Gold Project in Tanzania’s Geita Region.

The new program began August 1 and covers about 73 acres at Imwelo A Hamlet, following earlier acquisitions of 268 acres in 2019 and 185 acres in 2023, bringing the total land secured through the three phases to approximately 526 acres. LVG requires the additional land for worker accommodations, workshops and other mine infrastructure, with about 60 Project Affected Persons expected to participate in the process, which qualified government valuers will conduct under Tanzanian law. Chato District authorities have already approved the program.

LVG also completed the final tranche of its convertible debenture financing, adding approximately CA$331,000 and bringing total proceeds from the three tranches to about CA$4.2 million. The developments followed sterilization drilling that confirmed the planned plant and accommodation areas lacked significant gold mineralization.

The company’s previously announced gold loan facility with Monetary Metals, worth up to 6,000 ounces of gold, or approximately US$25 million, remains subject to Tanzanian regulatory requirements, including Bank of Tanzania registration, Mining Commission engagement and completion of documentation. The proposed facility would provide Imwelo with non-dilutive project financing denominated in gold. Atrium disclosed that its report was distributed on behalf of Lake Victoria Gold and that Atrium Research Corporation receives cash compensation from the company for nine months of research coverage while maintaining editorial independence.

Atrium predicted the production of 8,700 ounces in 2027, generating CA$38.7 million in net revenue, CA$8.9 million in cash flow and CA$0.04 in cash flow per share. The firm estimates 2027 cash costs at US$1,393 per ounce and all-in sustaining costs at US$2,016 per ounce. Atrium assigned LVG a net asset value of US$157 million, corresponding to a 0.29x price-to-NAV multiple and a 7.2x 2027 price-to-cash-flow multiple.

Atrium described LVG as "one of the few junior mining companies globally... transitioning from development to construction," and views the recent site-preparation achievements as evidence that Imwelo is progressing methodically into construction.

The analysts said the construction phase represents an important value-creation stage on the Lassonde Curve because development risk falls as a project moves closer to production and investors begin focusing more heavily on future output and cash generation. Atrium expects investor attention to increase as LVG advances through this phase, with upcoming catalysts including Barrick-related developments, Tembo drilling results, the start of Imwelo construction in Q3 2026 and the company’s target of producing first gold in 2027.

In a March 19 report, Red Cloud Securities mining analyst Alina Islam reviewed metallurgical testing from the Imwelo Gold Project and said the firm had not assigned a formal rating or price target to the company. Islam characterized the findings as "a positive de-risking milestone for the project." Testing indicated that the mineralization was "largely amenable to free milling," with conventional gravity recovery and cyanide leaching producing gold recoveries of up to 97%. Gravity tests also found "a strong gravity-recoverable component of approximately 42-47%," while diagnostic leaching demonstrated that "up to 84% of gold is directly cyanide-leachable," supporting the conclusion that the deposit is non-refractory.

The Catalyst: Gold Is Making a Comeback

Gold prices have strengthened amid expectations that the Federal Reserve will deliver fewer rate hikes and continued strong official-sector buying, while tighter Indian import controls are putting additional pressure on domestic demand, according to precious-metals analysts at Heraeus, as reported by Ernest Hoffman for Kitco News on August 10. The analysts said gold posted its strongest weekly gain since January, climbing more than 7% and surpassing US$4,300 per ounce as hopes increased for a U.S.-Iran agreement that could restore access through the Strait of Hormuz. Lower oil prices and declining real-rate expectations also supported precious metals, with silver advancing more than 10% for its strongest weekly performance since January.

Central banks increased their net gold purchases to 51 tonnes in June from 41 tonnes in May, nearly double the 12-month average of 27 tonnes. Poland and China accounted for the largest purchases at 19 tonnes and 15 tonnes, respectively, followed by Uzbekistan at 9 tonnes and Kazakhstan and Singapore at 7 tonnes each, while Jordan and the Czech Republic also added to their reserves; Russia and Turkey reduced their holdings by 9 tonnes and 2 tonnes, respectively. "Reported net buying reached 102 tonnes in H1’26 despite combined sales of 127 tonnes by Turkey and Russia, indicating that official-sector demand remains an important source of support for gold," Heraeus said, according to Hoffman.

Spot gold climbed to an overnight peak of US$4,362 per ounce before giving back some of its gains following the North American open, with the metal last trading at US$4,330.42, down 0.27% for the session.

The present market backdrop gives precious-metals investors “one of the more compelling upside setups we have seen in precious metals in months,” according to Scott Rubner, Head of Equity and Equity Derivatives Strategy at Citadel Securities, Hoffman noted in a separate August 10 report.

Citadel Securities, the largest retail market maker in the United States, has adopted a structural bullish stance on gold for the first time in 2026, while also identifying substantial upside potential for silver among retail investors. The firm sees five key forces aligning to create an asymmetric opportunity for both metals: more dovish Federal Reserve rate expectations, rising central-bank purchases, net-short positioning among commodity trading advisors (CTAs), favorable options-market conditions in the largest gold and silver ETFs, and a possible revival in retail investor participation.

Rubner based his assessment on the SPDR Gold Shares ETF (GLD) and the iShares Silver Trust (SLV). Citadel expects GLD’s implied volatility to rise from historically low levels, while put/call skew has reversed to its most pronounced level since February, a combination that has historically indicated growing bullish sentiment.

“We are seeing the same dynamic in SLV, with implied volatility beginning to lift and skew meaningfully inverting,” the firm wrote in a recent note, suggesting that silver is beginning to mirror gold as investors reassess the potential for further gains.

Rubner also said Citadel’s CTA positioning analysis showed both gold and silver held net-short positions as of August 6. Rather than viewing those positions as a constraint, Citadel sees them as potential fuel for a sharp advance.

“With positioning still offsides versus an improving macro backdrop, renewed upside momentum could drive systematic buying and add another source of demand,” he said, noting that a decisive move higher could prompt trend-following funds to cover bearish positions and create a self-reinforcing rally as systematic investors are forced to reposition.

Ownership and Share Structure¹

Lake Victoria Gold Ltd. has a market cap of CA$56.41 million, with 202.54 million shares outstanding. The company's 52-week range is CA$0.16-CA$0.36.

Institutions own 10% of shares, while Strategic Corporate Investors own 18%, Management and Insiders own 21% of shares, and the remaining 51% of shares are held by Retail.

Common Investor Questions

What did Lake Victoria Gold announce? Its first NI 43-101 mineral resource estimate for the wholly owned Tembo Gold Project in northwestern Tanzania, located directly next to Barrick's Bulyanhulu Mine.

What does the maiden resource contain? An Inferred resource of 13.33 million tonnes at 1.12 g/t gold for 480,100 ounces, plus an Indicated resource of 2.69 million tonnes at 1.16 g/t for 99,700 ounces, across three near-surface deposits.

Why does the location matter? Tembo sits in Tanzania's Lake Victoria Goldfield and the Sukumaland greenstone belt — a major gold district that includes Barrick's Bulyanhulu, AngloGold Ashanti's Geita, and the Buzwagi and Golden Pride mines. LVG believes the structural trends behind Bulyanhulu's Reef 1 and Reef 2 extend onto its licenses.

What is Ngula 1 and why is it the focus? Ngula 1 holds about 56% of the Inferred ounces and 63% of the Indicated ounces (267,900 and 62,700 oz). It runs ~600 m along strike, up to 200 m wide, drilled to ~200 m depth and open in both directions. LVG plans 4,000–5,000 m of close-spaced (~20×20 m) drilling to firm up confidence and support mine planning.

What is the Nyati toll-milling plan? A proposed 500-tonne-per-day plant on a Tembo license near Bulyanhulu that could offer a lower-capital route to process near-surface Ngula 1 material. It's contingent on confirmatory drilling, permitting, financing and a definitive agreement.

How does Tembo fit with the rest of the company? Tembo becomes LVG's second defined Tanzanian gold asset alongside the fully permitted Imwelo Gold Project, its near-term development priority. LVG targets the start of Imwelo construction in Q3 2026 and first gold in 2027.

What do analysts say? Atrium Research maintained a BUY with a CA$0.50 target (roughly 79% above the CA$0.28 July 31 close, or ~82% on Atrium's fully diluted price basis), projecting 8,700 oz of 2027 production, US$1,393/oz cash costs and US$2,016/oz all-in sustaining costs, and a US$157M NAV. Red Cloud Securities, which has no formal rating, called Imwelo metallurgy — up to 97% gold recovery and non-refractory ore — "a positive de-risking milestone."