Gold Explorer Uncovers Massive Expansion Potential in Tanzania

1. Lake Victoria Gold Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Lake Victoria Gold Ltd.
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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 the completion of drilling and the receipt of all analytical results from its recent drill program at the fully permitted Imwelo Gold Project in northern Tanzania's Lake Victoria Goldfield, according to a release on February 5.

With permits secured and key technical work programs now finalized, Imwelo Area C is being systematically advanced toward construction readiness and initial production, the company said. The program successfully confirmed the down-dip continuity of mineralization below the current pit design and, importantly, identified new mineralized extensions to both the west and east of the planned open pit.

These results significantly enhance confidence in the geological model and represent a crucial step in advancing Imwelo Area C toward final pit optimization and development planning, Lake Victoria said.

"These results further validate Imwelo as a near-term production asset," President and Chief Executive Officer Marc Cernovitch said. "We have now demonstrated continuity of mineralization beyond the current pit design, both at depth and laterally, which strengthens confidence in the geological model underpinning our development plans. Importantly, the drilling has delivered the technical data required to advance final pit design, resource conversion, and mine planning. With each program, Imwelo continues to move from definition toward execution."

Selected highlights include:

• IMWDR003: 3.56 grams per tonne gold (g/t Au) over 1.21 meters from 83.04 meters, including 7.16 g/t Au over 0.41 meters.
• IMWDR007: 6.96 g/t Au over 2.56 meters from 132.8 meters, including 65.02 g/t Au over 0.25 meters.
• IMWDR009: 11.88 g/t Au over 1.33 meters from 169.75 meters, including 68.74 g/t Au over 0.22 meters.
• IMWDR011: 8.55 g/t Au over 1.3 meters from 93.34 meters, including 20.77 g/t Au over 0.31 meters.
• IMWDR012: 2.49 g/t Au over 2.56 meters from 79.2 meters, including 4.85 g/t Au over 0.6 meters and 5.05 g/t over 0.51 meters.
• IMWDR013: 9.31 g/t Au over 2.45 meters from 130 meters, including 21.65 g/t over 0.96 meters.
• IMWDR016: 1.67 g/t Au over 1.67 meters from 131.4 meters, including 2.15 g/t over 0.55 meters.
• IMWDR017: 11.19 g/t Au over 0.9 meters from 91.8 meters, including 32.84 g/t over 0.3 meters and 2.97 g/t Au over 3.01 meters from 100.52 meters.

"The geology is performing exactly as interpreted," Exploration Manager Hendrik Meiring said in the release. "We are seeing consistent mineralization, alteration, and structural continuity across multiple zones and to depth, including beyond 250 meters below the surface. The confirmation of mineralization east and west of the current pit design further highlights the potential for resource growth and reinforces the robustness of the Area C mineralized system."

Results Support Existing Historical Resource Model

The results align with the grades and widths of holes that support the existing historical resource model, enhancing confidence in upgrading resources from Inferred to Indicated and potentially increasing the Measured resource classification, Lake Victoria Gold said.

Drilling confirmed mineralization down-dip along the entire pit design, with geological continuity now demonstrated to over 250 meters in vertical depth, compared to historical resource limits of approximately 200 meters, the release said. The completed holes provided an average vertical intersection depth of about 120 meters, more than double the historical drilling intersection depth of around 50 meters, offering new insights below the previous modeled limits.

IMWDR018 confirmed mineralization beyond the current eastern pit margin, the release noted. Drilling west of the interpreted NNE-trending structure has intersected new mineralization west of the fault zone, opening a new area for potential resource growth.

Additional mineralized intervals outside the primary lode suggest potential to add internal ounces within the current design envelope, the company said.

Depth extensions and consistent structural continuity support ongoing evaluation of a potential underground development scenario beneath the planned shallow open pit, LVG said.

Twenty-one of the planned 24 holes were completed, according to Lake Victoria Gold. Analysis was conducted by the MSA Laboratory in Geita.

"Collectively, the completion of these work programs materially advances Imwelo toward production readiness," the release said. "Final pit design, geotechnical de-risking, grade control planning, and metallurgical validation are foundational inputs not only for mine construction, but also for project financing. The company is advancing a funding strategy designed to minimize equity dilution and align capital with near-term cash flow generation, supported by the fully permitted status of the project and the strength of the underlying geology."

Analyst: Co. 'Steadily Advances Toward Production'

The drilling successfully confirmed the continuity of mineralization below the open pit design and identified extensions to the west and east, according to a February 5 updated note by Atrium Research Analyst Ben Pirie.

"The company has now completed key work programs, which have provided increased confidence to proceed to a final pit design, as it is systematically advancing the project toward construction and initial production in the near-term," Pirie wrote. "We are maintaining our BUY rating and target price of CA$0.50/share on Lake Victoria Gold."

That target indicates a return of 67% at the time of writing.

Management commentary in the release highlighted that the program has significantly increased geological confidence in the company’s development plans at Imwelo, which closely aligns with the interpreted model. Additionally, new intervals in the footwall and hanging-wall zones support the potential for additional ounces within the current pit design. Beyond near-term production readiness, the results support continuity of mineralization in multiple zones, as well as at depth beyond 250 meters, highlighting promising growth opportunities in Area C.

In terms of expansion potential, Hole IMWDR018 confirmed extensions to the east, while intercepts west of the NNE-trending structure and fault zone highlight a potential new area for growth, Pirie wrote. At depth, drilling confirmed extensions down-dip along the entire open pit design, outlining continuity an additional ~50 meters to over 250 meters versus the historic resource limit of 200 meters, with holes averaging a depth intersection of ~120 meters, more than double historic drilling. These drill results support future underground potential below the open pit, which LVG is evaluating.

The results "significantly derisk the project as LVG steadily advances toward production," the analyst wrote. "Importantly, results provide increased comfort in the geological model, with strong results from infill drilling, which will allow LVG to proceed with final design optimization ahead of construction. The work program also provides technical confidence for LVG to proceed with project financing discussions, which is an important milestone. We are equally encouraged by the extensive expansion opportunity highlighting additional long-term potential at Imwelo beyond near-term production plans."

Overall, Pirie said Atrium likes Lake Victoria Gold because it has a clear path to production at Imwelo, with construction expected in 2026 and first gold targeted for 2027, providing near-term cash flow visibility.

"The company has plenty of exploration upside across the portfolio, with Imwelo offering mine-life extension potential and Tembo hosting multiple targets adjacent to Barrick’s 12 Moz (million ounce) Bulyanhulu Mine," the analyst said.

Analyst 'Encouraged' By Results

According to an update by Red Cloud Analyst Alina Islam on February 6, the program aimed to convert and expand resources in the Area C open pit. The latest assays continue to confirm the extension of gold mineralization at depth, beyond the current pit limits in Area C, as well as in new areas to the east and west of the pit. Drilling has also closed gaps within the near-surface resource model and provided geotechnical data to help finalize pit wall support requirements.

"We are encouraged to see drilling highlighting further resource growth and conversion potential at Imwelo, where management is working to get this fully permitted project into production as soon as possible, with initial production of 12,000 ounces Au planned (ramping up to 24,000 ounces Au), at an estimated AISC of US$1,400/ounce," Islam wrote.

The company’s focus will now shift to completing an updated mineral resource estimate for the project, followed by detailed engineering work in preparation for a pre-feasibility study (PFS), Isalm said.

"Discussions are also underway with a local bank syndicate for a financing package to fund the ~US$15 million capex estimate," Islam wrote. "We look forward to seeing updates on Imwelo, as well as plans for the company’s Tembo project, also in Tanzania, where an LOI (letter of intent) was signed last year to evaluate potential opportunities to process material at Nyati Resources’ nearby 500tpd (tonnes per day) processing plant." 

The Catalyst: Gold's Wild Ride

In late January, the price of gold reached an unprecedented high of around US$5,500, noted University of Stirling Finance Professor David McMillan, writing for The Conversation on February 3.

However, on January 30, it experienced one of the largest single-day declines, dropping nearly 10% after hitting its record high just the day before. This marked a dramatic reversal from a bullish gold market that had risen over 300% in the past decade, more than 150% in the last five years, and notably, by 75% since U.S. President Donald Trump announced his "liberation day" tariffs.

To understand this shift, we need to examine the factors that contributed to the rise in gold prices, McMillan said. These reasons can be broadly categorized into two areas. The first involves market uncertainty and gold's role as a "safe haven." Unlike shares, which may provide dividends, or bonds, which offer coupon payments, gold as a financial asset does not generate income. Therefore, during prosperous times, investors tend to favor shares and during periods of high interest rates, they prefer bonds.

"However, during periods of heightened risk and uncertainty, the tangibility of gold gives it value," he wrote. "This was seen during the financial (and subsequent sovereign debt) crisis and at the beginning of the COVID period. Here both share prices and interest rates were low (interest rates historically so) and gold became the favored asset because it offered the chance of greater returns relative to risk."

Gold's remarkable surge through late last year and into early 2026 has garnered significant attention, with physical bullion now literally emerging from unexpected places, according to Kitco's Neil Christensen on February 6. The Grand Emperor Hotel in Macau announced plans to remove its floor to sell the inlaid gold bars for a substantial profit. The hotel, which opened in 2006, is renowned for its lavish decor, including a lobby floor embedded with numerous gold bars.

"In light of the prevailing market conditions and the market price of the precious metal currently at a high level, the directors are of the view that the disposal represents a good opportunity for the group to realize and unlock the value of the precious metal whilst enabling the group to save security and insurance expenses associated with the precious metal in the future," the company stated in its filing with the Hong Kong Stock Exchange, according to Christensen.

The company plans to raise US$12.76 million by selling 2,539.91 ounces of gold. Reports indicate that the company is raising capital as it closes its casino business and shifts focus to developing entertainment and amusement facilities.

"Given that the relevant area is planned to undergo renovation and redevelopment, the precious (metals) that were originally part of the hotel’s interior design and outfits are no longer relevant to the theme of the hotel in the future," the company explained.

While gold has experienced some notable volatility recently, prices continue to consolidate at elevated levels just below US$5,000 an ounce. Over the past 20 years, the value of the gold in the hotel’s floor has increased by more than 850%.

Ownership and Share Structure¹

Approximately 28% is owned by management and insiders, institutions hold 15%, shares issued for the acquisition of Imwelo account for 12.3%, the TAIFA Group owns 8.2%, and Barrick Mining Corp. (ABX:TSX; B:NYSE) holds 3%. 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$51.76 million. It has 195.31 million shares outstanding, according to the company, and trades in a 52-week range of CA$0.13 to CA$0.25.