Gold Developer Advances Project With Regulatory Milestone in Tanzania

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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 an update following recent discussions with the Tanzanian Mining Commission concerning the implementation of the government's statutory participation in its Tembo Project located in northwestern Tanzania, according to a release on March 25.

The company's Tanzanian subsidiary has officially received notice from the Mining Commission to begin incorporating the government of Tanzania's 16% non-dilutable free carried interest into the Tembo mining licenses, as stipulated by the Mining Act and related regulations. In response, LVG has initiated the process and is actively collaborating with the government to integrate this framework and further the project's development.

Government participation in the process is a well-defined and customary component of Tanzania's mining framework and represents a key step in transitioning Tembo toward development, the release noted.

This regulatory milestone is being advanced in parallel with near-term production planning, positioning Tembo to move forward on multiple fronts: regulatory alignment and project de-risking, execution of a binding development partnership with Nyati, advancement toward potential initial gold production and cash flow, and ongoing exploration to expand the broader resource base, the company said.

The formal process to implement Tanzania's statutory 16% free carried interest in the Tembo mining licenses has begun, marking a crucial step in advancing the project towards development.

LVG said it is in the final stages of negotiations with Nyati Resources to finalize a binding agreement aimed at supporting near-term development and processing.

"The initiation of the government participation process is an important and positive step for Tembo, reflecting continued progress within Tanzania's established regulatory framework," LVG President and Chief Executive Officer Marc Cernovitch said. "At the same time, we are nearing completion of a binding agreement with Nyati Resources, which has the potential to enable near-term production and cash flow. Advancing these workstreams in parallel positions Tembo to transition from an exploration-stage asset toward development in a capital-efficient manner."

The anticipated partnership with Nyati is expected to facilitate toll milling and potential early-stage production, Lake Victoria said in the release. By leveraging existing regional processing infrastructure, LVG aims to significantly reduce capital expenditures and expedite project timelines, the release said.

Looking Ahead

LVG said it is diligently advancing the Tembo project through several parallel initiatives focused on near-term development and potential production. These efforts include finalizing the agreement with Nyati Resources to support toll milling and early-stage production, continuing the government participation process, and conducting targeted drilling at the initial production area to aid mine planning, engineering, and operational readiness, all within a phased development framework.

It is important to note that LVG has not completed a feasibility study for the Tembo Project that confirms mineral reserves with demonstrated economic and technical viability, the release noted Therefore, any decision to proceed with production, including potential toll milling or other third-party processing arrangements, carries increased risks of economic and technical failure without such a study.

There is no assurance that production decisions will be made or that they will proceed as planned. Risks include variability in grade and recovery rates, metallurgical performance, conditions of processing arrangements, capital and operating cost overruns, availability of funding, and other operational, regulatory, and permitting challenges.

Key Catalysts: Ongoing Exploration, Upcoming Construction

On March 19, 2026, Alina Islam, a Mining Analyst at Red Cloud Securities, provided an insightful update on Lake Victoria Gold, particularly focusing on the recent metallurgical test results from the company's operations. While Lake Victoria Gold does not currently have a formal rating or target price set by Red Cloud, Islam emphasized that these latest results mark a significant de-risking milestone for the project.

This recent batch of tests is especially notable as it included, for the first time, both transitional and fresh sulfide rock from deeper sections of the planned mining pit. This addition complements earlier tests that primarily focused on oxide materials. Islam noted that the consistency of these new results with historical data from 2013, 2014, and 2017 enhances confidence in the predictability of recovery rates throughout the mining sequence and lends robust support to the final plant design.

The tests confirmed the effectiveness of the gravity plus carbon-in-leach (CIL) processing flowsheet, a well-established method in the Lake Victoria Goldfield, aligning with the metallurgical profiles observed in other operational mines within the district, the analysts said. Bond Work Index testing suggested a value of approximately 22.9 kWh/t, indicative of the relatively hard rock characteristic of the region's Archean greenstone deposits, yet manageable within conventional milling circuits.

The Imwelo project, positioned just 12 kilometers west of AngloGold Ashanti Ltd.'s Geita mine, is a fully permitted, near-term development initiative. It operates under a 10-year mining license with comprehensive permissions for construction and production. A historical Preliminary Feasibility Study (PFS) from 2021 projected a 10-year open-pit operation beginning with an initial production of 12,000 ounces of gold, scaling up to 24,000 ounces, at an estimated all-in sustaining cost of US$1,500 per ounce.

Currently, Lake Victoria Gold is diligently integrating these metallurgical insights into the final mine planning, process plant optimization, and engineering studies for a PFS anticipated around 2027, Islam wrote. The company is also progressing funding strategies to cover the estimated US$15 million capital cost.

Looking forward, Islam highlighted several potential catalysts that could positively impact the stock price, including an updated mineral resource estimate expected in 2026, a targeted pre-feasibility study around 2027, and ongoing exploration results from the company's Tembo project.

In a related note dated March 18, Atrium Research analysts Ben Pirie and Nicholas Cortellucci reaffirmed their BUY rating and a target price of CA$0.50 for Lake Victoria Gold. They pointed out that the recent metallurgical tests from Imwelo have significantly de-risked the project as it nears the construction phase later this year. These tests, which now include transitional and fresh sulfide material, align closely with previous findings, bolstering confidence in the processing plant's future performance. Lake Victoria Gold is set to commence construction in late 2026, with the first gold production expected in 2027.

The strategic location of the Imwelo project, its full permitting status, and the potential for significant cash payments from the partnership with Barrick Mining Corp. at the Tembo Project all contribute to a positive outlook for the company, with ongoing exploration and upcoming construction serving as key catalysts.

War Leads to Opportunities in the Markets

In a recent article by Alex Kozul-Wright for Barron's, published by MSN on March 26, it was reported that precious metal prices saw a downturn early Thursday, largely due to fading hopes for a resolution to the U.S.-Iran tensions, which also negatively affected the broader financial markets.

Continuous gold futures fell by 2.1% to US$4,456.70 an ounce, and silver futures experienced a sharper decline of 4.6%. Simultaneously, the S&P 500 index also saw a decrease, dropping by 0.4%.

Since the conflict began on February 28, precious metals have faced substantial losses, with gold dropping by 17% and silver by 28%, as per FactSet data. These declines are mainly due to changing expectations around interest rates, as reported by Barron's. The ongoing war has driven up energy prices, diminishing the likelihood of a near-term rate cut by the Federal Reserve, which in turn has negatively impacted nonyielding assets like gold and silver.

Derren Nathan, head of equity research at Hargreaves Lansdown, emphasized the influence of interest rate expectations over safe-haven appeal in his analysis, according to Kozul-Wright.

"The oil market dislocation has increased the probability of a Fed rate hold until at least October from around 11% to 62% over the last month," Nathan stated, noting that the market now anticipates almost a 40% chance of at least one 25 basis point rate hike. He added, "Things could change quickly if Middle Eastern tensions simmer down, but the longer oil routes remain blocked, the more embedded hawkish forecasts will become."

Rand Low, reporting for The Conversation on March 25, noted that while gold has traditionally been considered a financial "safe haven" during turbulent times, its recent performance has been more volatile, resembling a roller coaster rather than a stable sanctuary. At the end of January, gold prices soared to a record high of nearly US$5,600 per ounce, nearly doubling its value from the previous year.

However, since reaching that peak, it has lost about 20% of its value, particularly as the conflict in the Middle East intensified. Despite this recent decline, gold's price is still significantly higher than a decade ago, showing an increase of nearly 300%.

Ownership and Share Structure¹

Approximately 28% is owned by management and insiders, institutions hold 15%, and strategic corporate investors (including Barrick Mining Corp. and the TAIFA Group) own 23%. The remainder is retail.

Top shareholders include AIMS Asset Management with 8.79%, Rostam Aziz with 8.19%, Simon Charles Benstead with 7.46%, Concept Capital Management Ltd. with 5.83%, and Walter David Scott with 3.08%.

The company's market cap is CA$63.7 million. It has 195.31 million shares outstanding, according to the company, and trades in a 52-week range of CA$0.16 to CA$0.35.