Equity Insider News Commentary
Issued on behalf of Lake Victoria Gold Ltd.
VANCOUVER, BC, June 5, 2025
/PRNewswire/ -- Equity Insider News Commentary –
Goldman Sachs analysts say central banks are driving the
current gold bull market by purchasing roughly 80 metric tons per
month — the equivalent of $8.5
billion at today's prices. With ongoing geopolitical
instability and economic uncertainty, analysts like George Milling-Stanley of State Street Global
Advisors argue that gold remains a compelling hedge. As bullion
pushes toward new highs, momentum is starting to shift toward
mining equities as well. A growing number of investors are now
eyeing gold stocks like Lake Victoria
Gold (TSXV: LVG) (OTCQB: LVGLF), i-80 Gold Corp.
(NYSE-American: IAUX) (TSX: IAU), Orezone Gold Corporation
(TSX: ORE) (OTCQX: ORZCF), Franco-Nevada Corporation (TSX:
FNV) (NYSE: FNV), and IAMGOLD Corporation (NYSE: IAG) (TSX:
IMG).
Despite the price surge in physical gold, Jefferies
analysts note that many miners are still trading at historically
low valuations — as if gold were stuck at $2,500 an ounce or lower. That disconnect, they
say, may not last much longer.
Lake Victoria Gold (TSXV:
LVG) (OTCQB: LVGLF) is an emerging gold developer advancing a suite
of development -stage assets in Tanzania, one of East Africa's most geologically prospective
regions. With multiple project catalysts now in motion, the company
is gaining attention as a junior to watch. A key near-term focus is
its planned 3,000-meter reverse circulation (RC) drill program at
Ngula 1, part of the larger Tembo Project located adjacent to
Barrick's high-grade Bulyanhulu mine.
Ngula 1 has already returned notable historical intercepts,
including 28.57 g/t gold over 3 meters and 17.23 g/t over 4 meters.
The current 45-hole campaign is targeting near-surface
mineralization that could potentially support toll milling at a
nearby third-party facility. If the program meets expectations, it
may pave the way for a streamlined, low-capex production pathway
leveraging local infrastructure.
"This drilling campaign is part of our broader strategy to
unlock the long-term value at Tembo," said Simon Benstead, Executive Director of Lake
Victoria Gold. "While the
near-surface potential at Ngula 1 presents an exciting opportunity
for near-term production and cash flow, it also serves a larger
purpose—supporting a non-dilutive path toward what we believe is a
district-scale gold system. We're leveraging strategic
infrastructure and partnerships to advance exploration while
staying disciplined on capital allocation."
In parallel with its drilling efforts, Lake Victoria Gold is advancing a proposed
processing arrangement through a non-binding letter of intent (LOI)
with Nyati Resources. Under the current framework,
mineralized material from LVG's Mining Licences would be
trucked to Nyati's 120-tonne-per-day processing plant, with
an option to scale operations into a new 500-tpd facility which is
expected to be commissioned in the coming months. To support the
initiative, Nesch Mintech Tanzania has been brought in to assess the
plant's readiness, evaluate metallurgical performance, and outline
any necessary upgrades to support production goals.
"Engaging Nesch Mintech at this stage ensures we bring
third-party rigour and transparency to the commissioning process,
which is fundamental to assessing the Nyati opportunity,"
said Marc Cernovitch, President and CEO of Lake Victoria Gold. "We are excited by the
potential to leverage existing processing infrastructure and local
ore sources to create a scalable gold production platform in
Tanzania."
If proven viable, the proposed partnership could help advance
Lake Victoria Gold's strategy
of building a lean, capital-efficient gold operation. On-site
processing may unlock early cash flow while also yielding critical
geological data to refine future exploration. Though factors such
as metallurgy, grade consistency, and permitting will need to be
closely managed and always present risks, the phased structure
provides a flexible alternative to conventional, high-cost
development models.
"Tembo has always stood out as a project with the potential to
deliver both near-term value and long-term discovery upside," said
Benstead. "Evaluating this small-scale development opportunity
allows us to test the system, generate operational insights, and
potentially self-fund ongoing exploration."
Both the Ngula 1 drill campaign and the proposed Nyati
processing partnership are part of Lake Victoria Gold's broader Tembo Project — a
high-potential gold district that has already seen over
US$28 million in exploration spending
and more than 50,000 meters of drilling. Key zones like Nyakagwe
Village and Nyakagwe East remain open along strike and at depth,
with only a small portion of mapped structures drilled to date.
This leaves considerable room for further discovery.
Tembo is also anchored by a tier-one relationship: a
milestone-driven contingent payment agreement with Barrick
Mining Corp., valued at up to US$45
million depending on exploration outcomes. The deal reflects
shared confidence that Tembo may host a district-scale gold system
with long-term development potential.
While Tembo remains the flagship, the most advanced asset in
LVG's portfolio is Imwelo — a fully permitted gold project
located near AngloGold Ashanti's Geita Mine. Imwelo is
supported by a 2021 Pre-Feasibility Study and stands out as a
strong candidate for phased development.
To help fund its advancing strategy, Lake Victoria Gold has secured multiple
non-dilutive financing channels. A gold prepay agreement with
Monetary Metals allows the company to draw on the cash value
of up to 7,000 ounces tied to future production. Separately, a
C$3.52 million investment from
Taifa Group — part of a larger C$11.52 million multi-stage financing — has
further strengthened the company's balance sheet. As part of that
transaction, former Taifa CEO Richard Reynolds joined the board, bringing
valuable in-country operating experience.
With drill rigs soon turning at Ngula 1, plant evaluations
underway, and capital sources secured, Lake Victoria Gold is steadily positioning itself
for a transition into production. Its development strategy is
incremental by design — focused on limiting upfront capital
exposure, unlocking early-stage returns, and using those gains to
accelerate exploration.
In an industry often dominated by high-cost development paths,
LVG is charting a different course — one that offers
potential for lower-risk, modular growth in a proven gold
district.
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:
i-80 Gold Corp. (NYSE-American: IAUX) (TSX: IAU) has
closed its previously announced US$11.1
million concurrent private placement, issuing 22.24 million
units priced at US$0.50 each. This
follows a US$173 million bought deal
financing that closed earlier in May, bringing total gross proceeds
to approximately US$184 million. The
capital will be used to support the company's Nevada-focused development plan and broader
recapitalization strategy.
"At Granite Creek Underground, i-80 Gold's first gold project to
ramp up, we are making good progress in our dewatering efforts,
addressing groundwater inflows by enhancing our pumping capacity
and upgrading the water treatment infrastructure,"
stated Richard Young, President
and CEO of i-80 Gold. "These improvements should allow us to
ramp-up to steady state of gold output in the second half of
2025."
Orezone Gold Corporation (TSX: ORE) (OTCQX:
ORZCF) produced 33,252 ounces of gold during Q1 2025 at an
AISC of $1,286 per ounce and sold
32,076 ounces at $2,068 per ounce,
generating $19.2 million in operating
cash flow.
"We are pleased with the strong start to 2025 with solid
production and cost performance in Q1," said Patrick Downey, President and CEO of Orezone
Gold. "We remain on track to deliver our 2025 production and
cost guidance while progressing key initiatives including the grid
power connection and Bomboré expansion drilling."
Orezone maintained its full-year production guidance and
expects major cost reductions once the Phase III grid connection is
completed in Q3. Meanwhile, expansion drilling at Bomboré delivered
promising near-mine results to support future growth.
Franco-Nevada Corporation (TSX: FNV) (NYSE: FNV) has
acquired a cornerstone royalty on the Côté Gold Mine, operated by
IAMGOLD Corporation (NYSE: IAG) (TSX: IMG) and
Sumitomo, for $1.05 billion in
cash.
"We are pleased to add this new cornerstone gold royalty to our
extensive portfolio in Ontario,"
said Paul Brink, President & CEO
of Franco-Nevada. "Their
team has developed an excellent new operation with an extensive
Resource endowment that has high potential to continue
expanding."
The 7.5% gross margin royalty covers nearly the entire resource
base and is expected to generate $67
million annually at IAMGOLD's midpoint production
guidance and a $3,200 gold price.
Franco-Nevada praised the modern
design and expansion potential of the Côté operation, which
includes autonomous equipment and potential mill capacity growth to
20 Mtpa.
"We are pleased to welcome our new partner Franco-Nevada to the
Côté Gold Mine as we continue to ramp up one of Canada's largest and longest-life gold mines,"
said Renaud Adams, President and CEO
of IAMGOLD. "The value upside of the Côté Gold Mine is
further supported by the rapidly growing Gosselin zone which we
intend to incorporate into an updated mine plan next year."
As part of the deal, IAMGOLD and Sumitomo may
repurchase up to 50% of the royalty in two tranches.
Franco-Nevada will fund the
transaction with existing capital and continues to generate
$275–$300 million in quarterly free cash flow.
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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