Gold Developer Discovers Excellent 97% Recovery 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 Inc.
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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 results of recent metallurgical tests conducted on drill core samples from its latest drilling endeavor at Area C of the Imwelo Gold Project, located in the northern part of Tanzania’s Lake Victoria Goldfield, according to a March 18 release.

The tests have confirmed that the mineralization at Imwelo is predominantly free-milling, with laboratory analyses showing gold recoveries of approximately 96-97% through standard gravity concentration and cyanide leaching techniques, the company said. These promising results enhance the metallurgical understanding of the Imwelo Project and align with LVG’s objective to propel the project towards imminent gold production within the region.

"These metallurgical results represent an important milestone in advancing Imwelo toward production," President and Chief Executive Officer Marc Cernovitch said. "The testwork confirms that the mineralization is largely free-milling, with a strong gravity recoverable gold component and excellent cyanide recoveries of up to approximately 97%. Importantly, the results are highly consistent with earlier metallurgical programs completed in 2013, 2014 and 2017, significantly reducing processing risk and providing a strong technical foundation for final plant design."

He continued, "Deposits that combine simple metallurgy, strong gravity recovery, and high cyanide recoveries are widely recognized as among the most attractive development opportunities in the gold sector. … With Imwelo located in the heart of Tanzania’s Lake Victoria Goldfield, these results reinforce its position as a low-risk, near-term gold production opportunity in one of Africa’s most prolific gold districts.”

Key highlights from the test work include:

• Gold recovery rates of up to approximately 97% were achieved in bottle roll cyanide leaching tests.
• A significant gravity recoverable gold component, accounting for about 42-47%, was confirmed across various test programs.
• Approximately 84% of the gold was found to be directly leachable by cyanide, indicating free-milling mineralization.
• High downstream recoveries were observed, with about 95% recovery from gravity tails cyanidation.
• The consistency of metallurgical results was reaffirmed, aligning with findings from previous test programs conducted in 2013, 2014, and 2017.

These results are pivotal as they substantially de-risk the development trajectory for the Imwelo Project, the release noted. They confirm the viability of a straightforward processing route via a conventional gravity and carbon-in-leach (CIL) circuit, recognized globally as one of the most reliable methods for gold processing. The testwork demonstrated overall high recovery rates of up to approximately 96-97%, indicative of robust potential for open-pit gold mining operations.

The diagnostic leach testing revealed that the majority of the gold is directly cyanide-leachable, confirming that the deposit is largely non-refractory. The presence of a substantial gravity recoverable gold component suggests that a significant portion of gold could be efficiently extracted early in the processing sequence, potentially enhancing operational efficiency and reducing processing risks, the company said.

Furthermore, the consistency of these results with historical metallurgical work, including strong recoveries from fresh mineralization at Area C, bolsters confidence in the anticipated performance of the processing plant, according to LVG. The combination of high gold recoveries and a straightforward gravity-CIL processing flowsheet supports robust project economics and relatively low processing risks, characteristics often associated with successful open-pit gold operations.

Findings Confirm Gold Recovery Process

Key components of the testwork by Nesch Mintec Tanzania Ltd. included diagnostic leach testing, Gravity Recoverable Gold (GRG) testing, bottle roll cyanide leaching, intensive leaching of gravity concentrates, cyanidation of gravity tails, and Bond Work Index determination. The findings confirmed that gold recovery at Imwelo is efficiently achievable through a conventional gravity and cyanide leach process, aligning with typical gold processing methods. While these results provide a solid basis for evaluating the processing characteristics at Area C, further testing might be pursued as part of continuous engineering and development efforts.

Diagnostic leach testing revealed that about 84% of the gold is directly recoverable via cyanidation, with minimal association with sulfide minerals or carbonaceous materials, indicating that the mineralization is predominantly free-milling, the release said. This characteristic is advantageous as it typically ensures high recoveries with standard processing techniques. Additionally, significant gravity recoverable gold was identified, suggesting substantial early recovery through gravity concentration before cyanide leaching.

Ore hardness testing indicated a Bond Work Index of approximately 22.9 kWh/t, suggesting moderately hard rock typical of Archean greenstone deposits found in the Lake Victoria Goldfield. Although this points to moderate grinding energy requirements, such levels are typical for the region's deposits and can be efficiently managed in conventional milling setups, Lake Victoria noted.

These metallurgical results mark a significant advancement in moving the fully permitted Imwelo Project towards near-term gold production. The company said it is now integrating these findings into the final stages of mine planning, process plant design optimization, production scheduling, and further engineering studies.

Imwelo is strategically positioned within the prolific Lake Victoria Goldfield, merely 12 kilometers west of AngloGold Ashanti’s Geita Gold Mine, one of Africa’s leading gold production sites.

Co. Hits Important Milestone

On March 19, 2026, Alina Islam, a Mining Analyst at Red Cloud Securities, issued a development update on Lake Victoria Gold focusing on the metallurgical test results. Although Lake Victoria Gold does not have a formal rating or target price from Red Cloud, the analyst highlighted these results as an important de-risking milestone for the project.

This round of testing is particularly noteworthy as it included, for the first time, transitional and fresh sulfide rock from deeper sections of the planned pit, complementing previous tests that focused solely on oxide material, Islam wrote. The consistency of these results with historical data from 2013, 2014, and 2017 boosts confidence in the uniformity of recoveries throughout the mining sequence and supports the final plant design.

The confirmed gravity plus carbon-in-leach (CIL) processing flowsheet, a method well understood and commonly used across the Lake Victoria Goldfield, aligns with the metallurgical profiles of other operational mines in the district, the analyst noted. Bond Work Index testing indicated a value of approximately 22.9 kWh/t (kilowatt hours per tonne), suggesting relatively hard rock typical of the region's Archean greenstone deposits, manageable within conventional milling circuits.

Imwelo stands as a fully permitted, near-term development project, located just 12 km west of AngloGold Ashanti Ltd.'s Geita mine. It operates under a 10-year mining license with full permissions for construction and production. A historical 2021 Preliminary Feasibility Study (PFS) projected a 10-year open-pit operation starting with an initial production of 12,000 ounces of gold, escalating to 24,000 ounces, at an estimated all-in sustaining cost of US$1,500/ounce. Currently, Lake Victoria Gold is integrating these metallurgical findings into final mine planning, process plant optimization, and engineering studies for a PFS expected around 2027, while also advancing funding strategies for the estimated US$15 million capital cost.

Significant shareholders include management and insiders holding 28%, institutional holders at 15%, with other notable shares held by Imwelo Acquisition, Taifa Group, and Barrick Mining Corp.

Looking ahead, the analyst pointed to several potential catalysts likely to influence the stock price, including an updated mineral resource estimate expected in 2026, a targeted pre-feasibility study around 2027, and continuous exploration results from the company's Tembo project.

Tests Significantly De-Risk Project, Analysts Say

Atrium Research analysts Ben Pirie and Nicholas Cortellucci reaffirmed their BUY rating and CA$0.50 target price for Lake Victoria Gold in a March 18 research note.

The analysts also said the recent metallurgical test results from Imwelo have significantly de-risked the project as it approaches the construction phase slated for later this year.

These results align closely with previous metallurgical programs conducted in 2013, 2014, and 2017, which focused primarily on oxide material, the note said. The current testing extended to transitional and fresh sulfide material from deeper sections planned for mining, with recoveries consistent with historical findings. This consistency boosts confidence in the anticipated performance of the processing plant.

Lake Victoria Gold is now integrating these results into final mine planning, process plant design optimization, production scheduling, and ongoing engineering studies, Atrium said. The company targets construction to commence later in 2026, with the first gold production expected in 2027.

Atrium highlighted several strategic advantages supporting their positive view of the company. The Imwelo Gold Project is fully permitted, offering a clear path to near-term production and cash flow. Additionally, the company's partnership with Barrick Mining Corp. at the Tembo Project could potentially yield up to US$45 million in contingent cash payments tied to exploration success, with ongoing progress and drilling results serving as a continuous catalyst.

With the current share price at CA$0.26, Atrium's CA$0.50 target price suggests a potential return of approximately 96%.

Imwelo's proximity to AngloGold Ashanti's Geita Gold Mine positions it within one of Africa's most prolific gold districts, the analysts said. Key upcoming catalysts include ongoing progress and drilling results at the Tembo Project and the expected start of Imwelo construction in Q2–Q3 2026.

The Catalyst: Will Gold Continue Strong?

On Thursday, gold prices experienced a modest recovery after dipping to a more than one-month low, buoyed by a weakening dollar but constrained by a hawkish stance from the Federal Reserve, which has tempered expectations for imminent rate cuts, according to a Reuters report published by CNBC on March 19. Spot gold rose by 0.8% to US$4,856.82 per ounce, rebounding from its lowest point since February 6 earlier in the day. This recovery followed a significant 3.7% drop on Wednesday. Concurrently, U.S. gold futures for April delivery decreased by 0.8% to US$4,858.60.

The softening of the dollar played a key role in making gold, priced in the U.S. currency, more affordable for holders of other currencies. Tim Waterer, chief market analyst at KCM Trade, noted, "The dollar's momentum has paused today, which has effectively allowed gold to start recouping ground, albeit at a modest pace."

He also highlighted that while expectations of U.S. rate cuts have historically supported gold's value, recent spikes in oil prices have dampened these hopes, thereby undermining gold prices.

The geopolitical landscape has further complicated the economic environment, with oil prices surging above US$110 a barrel following Iran's attacks on several energy facilities across the Middle East in retaliation for a strike on its South Pars gas field, the article noted. This escalation has introduced new inflationary pressures, as evidenced by the sustained high prices due to the closure of the Strait of Hormuz, which has increased transport and manufacturing costs.

Typically, gold is sought after as a hedge against inflation, but the prospect of high interest rates, which diminish the attractiveness of non-yielding assets like gold, has limited its appeal. Both the U.S. Federal Reserve and the Bank of Canada expressed hawkish views in their latest statements, maintaining current interest rates but expressing concerns that rising energy costs could lead to more persistent inflation.

Gold has been one of the top-performing financial assets over the past year, and despite a recent dip in its price, some analysts anticipate continued strong performance, according to Colin Laidley writing for Investopedia on March 18. Recently, spot gold prices fell below the US$5,000-per-ounce mark, a level they had surpassed earlier in the year for the first time. However, according to gold strategists at State Street, there is potential for gold to retest the US$5,500 to US$5,600 per ounce range in March, particularly if the conflict in Iran escalates. They believe that the geopolitical landscape and global macroeconomic conditions remain conducive to supporting gold prices, estimating a 35% chance that gold could trade between US$5,500 and US$6,250 an ounce a year from now.

On Wednesday morning, gold prices dropped nearly 3% to about US$4,880 an ounce, Laidley reported. This decline comes despite the conventional wisdom that gold, as a safe haven asset, typically appreciates during times of geopolitical uncertainty. The recent underperformance, which has seen gold prices fall 7% since the onset of U.S. and Israeli strikes on Iran late last month, has been attributed to factors such as a strengthening dollar, uncertainties over the conflict's impact on interest rates, and a lack of buyers following last year’s significant price increase.

State Street analysts are optimistic that the factors currently restraining gold prices will be transient and that the trends which drove the metal to record highs in 2025, and above US$5,300 in January, will continue, the piece said.

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$47.99 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$0.33.