Issued on behalf of Lake Victoria Gold Ltd.
VANCOUVER – Baystreet.ca News Commentary – The ongoing gold rally has analysts identifying the current conditions for a breakout for gold mining stocks. Billionaire hedge fund manager John Paulson has been quite active recently, including a recent $800-million investment in a stake in an Alaskan gold mine, signalling bold bets being made in the gold mining sector. Coupled with ongoing tariff chaos being sparked by moves from the US White House, surging gold stocks have lifted the Top 50 mining stocks group overall. Among the miners making headlines recently with key developments are Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), Alamos Gold Inc. (NYSE: AGI), Fortuna Mining Corp. (NYSE: FSM) (TSX: FVI), Gold Fields Limited (NYSE: GFI), and SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM).
Despite recent gains, analysts believe gold equities remain undervalued, with economist Peter Schiff suggesting the sector may be entering a new era of outperformance. Gold is in a historic rally, hailed by Barron’s as a “light in the investment darkness” amid growing demand. Goldman Sachs now forecasts gold could surpass US$3,700/oz by year-end and reach up to $4,000/oz by mid-2026.
Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF) recently announced it’s evaluating a small-scale development opportunity aimed at generating early cash flow at its flagship Tembo Project in Tanzania, following the recent conversion of its Prospecting License into four Mining Licenses (MLs). Through its local subsidiary MIPCCL, the company is in discussions to form a joint venture with the operator of a privately commissioned CIP processing facility situated within one of Tembo’s 4 MLs.
“This potential partnership could represent a unique opportunity to establish early, low-capital-cost production from Tembo while continuing to unlock the district’s exploration upside,” said Marc Cernovitch, President and CEO of Lake Victoria Gold. “We remain committed to advancing Tembo through both strategic exploration and disciplined project development.”
The initiative remains conceptual and is not based on a current mineral resource estimate or a Feasibility Study demonstrating economic or technical viability. Any potential development remains highly speculative and subject to significant technical and economic uncertainties, including grade continuity, metallurgy, permitting, and financing.
“Tembo has always stood out as a project with the potential to deliver both near-term value and long-term discovery upside,” said Simon Benstead, Chairman and CFO of Lake Victoria Gold. “Evaluating this small-scale development opportunity allows us to test the system, generate operational insights, and potentially self-fund ongoing exploration. We believe this approach aligns well with our disciplined strategy and our commitment to responsible, phased development in Tanzania.”
Over the past year, LVG has made steady progress advancing its dual-asset strategy in the Lake Victoria Goldfield, one of East Africa’s most historically productive gold regions. The company believes it now has many of the key regulatory, financial, and operational elements needed to support a phased transition toward development.
Tembo remains the long-range flagship. Located adjacent to Barrick Gold’s Bulyanhulu Mine, the 100%-owned project has seen over US$28 million in historical exploration investment, including 50,000 meters of drilling. Results from Ngula 1, Nyakagwe Village, and Nyakagwe East have outlined multiple mineralized structures with high-grade intercepts that remain open along strike and at depth.
While Tembo holds the long-term growth potential, Imwelo is likely to lead LVG’s near-term development. LVG acquired full control of Imwelo earlier this year, a project already holding a Mining License and key approvals from the Government of Tanzania. Located west of AngloGold Ashanti’s Geita Gold Mine, Imwelo was previously the subject of an updated pre-feasibility study in 2021.
Early-stage development at Imwelo, if advanced successfully, could support operations while further work at Tembo continues. Financially, LVG continues to build flexibility, having signed a non-binding gold prepay term sheet with Monetary Metals in late 2024 for up to 7,000 ounces of gold, subject to conditions precedent—potentially providing upwards of US$20 million in non-dilutive construction capital at current prices.
In February, LVG also closed the first tranche of a three-stage strategic investment agreement with Taifa Group, Tanzania’s largest mining contractor, raising C$3.52 million at a price of C$0.22 per share. As part of the relationship, Richard Reynolds, former CEO of Taifa Mining, joined LVG’s board, adding regional and operational depth.
The company also retains exposure to upside through its 2021 deal with Barrick, having sold six non-core licenses for US$6 million upfront with up to US$45 million in contingent milestone payments tied to future discoveries. Barrick has since been actively drilling the ground, while LVG retains a back-end interest with no further capital outlay.
With early-stage development potential at Tembo, near-term advancement at Imwelo, and continued upside exposure through its Barrick deal, Lake Victoria Gold is increasingly well-positioned within the East African junior gold sector.
CONTINUED… Read this and more news for Lake Victoria Gold at: https://usanewsgroup.com/2025/04/02/with-funding-commitments-in-place-a-gold-mine-is-being-built-and-this-stock-is-still-under-0-20/
In other industry developments and happenings in the market include:
Alamos Gold Inc. (NYSE: AGI) recently announced the sale of its Quartz Mountain Gold Project to Q-Gold Resources for total consideration of up to $21 million, plus a 9.9% equity position in Q-Gold.
“The sale of Quartz Mountain is consistent with our strategy of monetizing non-core assets as we develop our portfolio of high-return growth projects including the Phase 3+ Expansion at Island Gold, Lynn Lake, and PDA,” said John A. McCluskey, President and CEO of Alamos Gold.
“As a Forbes & Manhattan backed company, Q-Gold is well positioned to advance Quartz Mountain and we look forward to participating in the future success of the project as a significant shareholder.”
The transaction includes immediate cash proceeds and future milestone-based payments tied to project development milestones like a feasibility study and permitting. Alamos stated the sale aligns with its ongoing focus on advancing core assets, including the Phase 3+ Expansion at Island Gold and the Lynn Lake project. The transaction is expected to close in the second quarter of 2025, subject to customary conditions.
Fortuna Mining Corp. (NYSE: FSM) (TSX: FVI) recently reported Q1 2025 gold equivalent production of 103,459 ounces across its four operating mines, while reiterating full-year guidance of 380,000 to 422,000 GEOs. The company also completed the sale of both its San Jose Mine in Mexico for upfront cash and future contingent payments, retaining a net smelter royalty on future production, and the sale of its Yaramoko Mine and exploration assets in Burkina Faso for approximately US$130 million in cash, plus potential VAT receivables, exiting the country entirely.
Jorge A. Ganoza, President and CEO of Fortuna, stated: “Considering the limited remaining life of mineral reserves at Yaramoko (approximately one year), the cessation of our exploration activities in-country, and the increasingly challenging business climate in Burkina Faso, the Transaction represents a prudent exit that optimizes value, avoids approximately US$20 million in future mine closure liabilities, and provides Fortuna with additional liquidity as we pursue opportunities more closely aligned with our strategic objectives.”
Gold Fields Limited (NYSE: GFI) recently secured a new 12-month mining lease for its Damang Mine in Ghana, ensuring continued operations while preparing for a potential transition to local ownership. During the lease period, the company will resume open-pit mining alongside processing surface stockpiles, supported by a feasibility study and infill drilling to extend the mine’s life.
“Gold Fields has a long and positive history in Ghana, and we are pleased to be working with them to safely and sustainably operate the Damang Mine and ultimately transition it to the people of Ghana,” said John Dramani Mahama, President of Ghana. “Ghana remains open for business and welcomes investment. Working side by side with global and local companies, we believe that we can create partnerships that are beneficial and sustainable.”
A joint asset transition team will guide the process, reflecting a broader partnership between Gold Fields and the Government of Ghana to boost national participation in the mining sector.
SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) recently issued full-year 2025 production guidance of 410,000 to 480,000 gold equivalent ounces, marking more than 10% growth year-over-year, excluding contributions from Çöpler.
“Our Americas assets, recently bolstered by the acquisition of CC&V, are well positioned for significant production growth and strong cash flows in 2025,” said Rod Antal, Executive Chairman of SSR Mining. “In addition, we see attractive and low capital intensity opportunities to potentially extend the mine lives at each of these assets going forward and will continue to progress technical work through the year.”
The portfolio has been bolstered by the acquisition of CC&V, with additional near-term growth expected from Marigold, Seabee, and Puna. SSR is advancing the Hod Maden project in Türkiye with a 2025 development budget of $60–$100 million, targeting key site and infrastructure milestones.
Article Source: https://usanewsgroup.com/2025/04/02/with-funding-commitments-in-place-a-gold-mine-is-being-built-and-this-stock-is-still-under-0-20/
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