Issued on behalf of Lake Victoria Gold Ltd.
VANCOUVER – Baystreet.ca News Commentary – Now that July has kicked off, and summer is here, the economists and analyst experts have weighed in again on the future of the world’s most popular precious metal. Gold’s price climb isn’t even close to being over. HSBC just raised its 2025 average gold price forecast by $200, from $3,015 to $3,215. According to a recent report from Bloomberg, gold and its miners may be on a path to enjoying a “critical mineral upgrade”, as the metal undergoes a subtle shift in how it’s viewed by governments and banks moving forward. The result is increased attention towards gold miners, as multiple analysts are believe mining stocks are still lagging far behind gold bullion’s current trajectory. Among those currently generating a buzz are Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), Northern Dynasty Minerals Ltd. (NYSE-American: NAK) (TSX: NDM), Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF), Gold Resource Corporation (NYSE-American: GORO), and Sandstorm Gold Ltd. (NYSE: SAND) (TSX: SSL).
Jefferies analysts, meanwhile, believe the market hasn’t caught up—arguing that many gold equities still trade as if bullion were stuck at $2,500, even as prices push well beyond that level. This sentiment is not just coming from Jefferies, as other experts in the sector are insisting that gold mining stocks remain massively undervalued, despite their record profits. And that’s not just the producers, but also the value of the assets being developed under the juniors with production dreams in the near future.
Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF) is positioning itself as a frontrunner among East African gold juniors with near-term production ambitions. The company has announced a 7,750-meter drill program at Area C, the highest-grade zone within its fully permitted Imwelo Gold Project in northwestern Tanzania. This campaign marks a key milestone in de-risking mine design and preparing for construction at what could become Tanzania’s next operating gold mine.
“We’ve designed this program to maximize Imwelo’s short-term production readiness while extending the upside case,” said Marc Cernovitch, President and CEO of Lake Victoria Gold. “The drill data will help us finalize early mine scheduling, validate pit design, and potentially unlock high-grade extensions. With Area C now fully defined as our initial production zone, we’re making meaningful progress toward becoming Tanzania’s next gold producer.”
The program includes 3,750 meters of tight-grid RC drilling for ore/waste boundary definition and 4,000 meters targeting strike and depth extensions. Intercepts to date have included 6.8 meters at 14.6 g/t gold from 33.2 meters, and 2 meters at 7.5 g/t from 22 meters—results that support Area C as a strong starter pit within Imwelo’s broader resource envelope. Completion of the program is expected in Q3 2025, with construction decisions anticipated to follow final engineering and economic analysis.
“We’ve optimized this program to deliver multiple layers of value—from detailed grade control to geotech validation and deeper exploration,” said Seth Dickinson, P. Eng., Chief Operating Officer of Lake Victoria Gold. “The step-out and depth targets are especially compelling given the structural complexity we’ve seen to the west. The team is focused on accelerating toward a clean construction start with maximum technical confidence.”
Imwelo sits atop the Geita Greenstone Belt, just 12 kilometers from AngloGold Ashanti’s flagship Geita Mine. The project benefits from a 10-year mining license and a 2021 prefeasibility study outlining a scalable, low-capex development model. Gold recoveries above 90%, plus operational support from Taifa Mining—Tanzania’s largest mining contractor—are helping set the stage for an efficient buildout.
In parallel, the company is advancing its nearby Tembo Project, where a separate 3,000-meter drill program is planned at the Ngula 1 target. This zone has previously returned intercepts of 28.57 g/t gold over 3 meters from 54 meters, and 17.23 g/t over 4 meters from 19 meters. Current efforts are focused on evaluating toll-milling potential while expanding geological understanding across the broader structural corridor—located immediately adjacent to Barrick’s Bulyanhulu Mine.
To support a near-term processing option, Lake Victoria Gold has signed a non-binding LOI with Nyati Resources, targeting toll milling at its 120-tpd plant. A new 500-tpd facility is also expected to come online in the near future. Independent firm Nesch Mintech Tanzania has been contracted to evaluate plant performance, technical readiness, and any required upgrades.
At Tembo, a 45-hole RC campaign will be focused on shallow gold zones that could provide early production optionality while continuing to map out a district-scale system. If successful, toll milling at Tembo could create a second track toward revenue even before full Imwelo construction is complete.
Beyond its core assets, LVG retains hidden upside through an agreement with Barrick Gold’s Bulyanhulu operation. Under a 2021 Asset Purchase Agreement, six non-core licenses were sold to Barrick for US$6 million upfront. Since then, more than US$5.56 million has already been spent on exploration, with over 21,600 meters of drilling completed—part of a US$9 million commitment.
If discoveries are made, LVG stands to receive up to US$45 million in contingent payments tied to discovered gold ounces. It’s a fully carried interest that offers long-term value without drawing on Lake Victoria Gold’s balance sheet or field capacity.
To fund its growth path, the company recently secured a gold prepay agreement with Monetary Metals tied to up to 7,000 ounces of future production. In addition, Taifa Group—a key contractor and strategic ally—has made a C$3.52 million equity investment, the first tranche of a larger C$11.52 million commitment.
With capital in hand, drills about to turn at both projects, and near-term development pathways clearly outlined, Lake Victoria Gold is no longer just another explorer. It’s a company executing on a two-pronged strategy—de-risking development at Imwelo while creating potential fast-track value at Tembo. And with Barrick spending millions next door, LVG shareholders maintain rare exposure to both self-directed and major-led gold discovery in one of Africa’s most prospective mining regions.
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:
Northern Dynasty Minerals Ltd. (NYSE-American: NAK) (TSX: NDM) is in active settlement negotiations with the U.S. Environmental Protection Agency (EPA) over the longstanding veto blocking its Pebble Project in Alaska. A recent federal court filing confirms both parties are working toward a potential resolution, with a 14-day extension granted to finalize the terms of a new information submission.
"We are pleased to be in discussions with the EPA, because we see this as the fastest path forward for withdrawal of the veto," said Ron Thiessen, President and CEO of Northern Dynasty. “They have asked for additional information to assist in finalizing that decision. A decision to withdraw this egregious and unsubstantiated veto would help the U.S. to secure a domestic supply of metals like copper, which is critical for the economy because of its fundamental use in electrification, and rhenium, which is a key component in several military applications. It also provides the opportunity for significant economic benefits over generations in this region of Alaska, the state and the country and would be consistent with the stated pledge of this administration to remove impediments to permitting."
If successful, this action could reopen the path to permitting one of the largest undeveloped copper-gold-molybdenum resources in the world.
Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF) has reported high-grade gold-rich drill results from both surface and underground programs at its Campo Morado mine in Mexico, including 15.1 meters grading 11.9 g/t AuEq from the Reforma deposit.
"Intersecting thick, high-grade, gold-rich massive sulphides in Luca's first drillhole at the Reforma Deposit clearly demonstrates how quickly the Company's exploration efforts can have a transformative impact on the mine and also our ability to realize the untapped metal endowment of Campo Morado,” said Paul D. Gray, Luca´s VP of Exploration for Luca Mining. “Luca is uniquely positioned to target these gold-rich deposits during record gold prices while continuing to build out the resources in the G9 Deposit. Underground drill results continue to impress with the discovery of additional mineralized zones with each batch of assays."
The current 7,500-meter Phase 1 drill campaign marks the first significant exploration at the site in over a decade, targeting near-mine extensions and underexplored zones. Results are expected to support an updated resource estimate and integration of new deposits into an expanded mine plan.
Gold Resource Corporation (NYSE-American: GORO) has secured a US$6.28 million debt facility to support development of the new Three Sisters area at its Don David Gold Mine in Oaxaca, Mexico. The capital will also be used for equipment upgrades and mill improvements, reinforcing the company’s near-term productivity plans.
"The funds from this loan will allow us to develop and begin production from the new Three Sisters area of our Don David Gold Mine," said Allen Palmiere, the Company’s President and CEO of Gold Resource. "Additionally, we will be purchasing replacement mining equipment and funding upgrades in the mill. This loan and the proceeds of equity issuances earlier in the year provide us with the capital to execute on our plans to increase productivity and profitability."
As part of the financing, a warrant for 1.5 million shares at $0.65 was issued to an affiliate of the lender.
Sandstorm Gold Ltd. (NYSE: SAND) (TSX: SSL) has agreed to be acquired by Royal Gold Inc. in an all-share transaction valued at approximately US$3.5 billion, offering Sandstorm shareholders a 21% premium to the 20-day VWAP.
"Today is a significant milestone for Sandstorm and its shareholders, marking the beginning of an exciting new chapter,” said Nolan Watson, President and CEO of Sandstorm. “Over the past 15 years, we've built a company that has not only delivered consistent growth and value but has helped shape the royalty sector through innovation. This transaction rewards Sandstorm shareholders in the near term while also offering a compelling opportunity to own a large-scale, world-class streaming and royalty company with continued upside potential.
The merger will create one of the world’s most diversified, gold-focused royalty and streaming companies, combining 393 assets across the Americas. Sandstorm shareholders will own roughly 23% of the combined entity, gaining exposure to a larger, higher-liquidity platform with significant organic growth potential.
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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