Equity Insider News Commentary
Issued on behalf of Lake Victoria Gold Ltd.
VANCOUVER, BC, May 1, 2025
/CNW/ -- Equity Insider News Commentary – For those
paying attention to gold, experts have begun to weigh in on whether
or not the precious metal will hit US$4,000 per ounce in 2025. Billionaire hedge
fund manager John Paulson, who sees
gold near $5,000 by 2028, has
signaled that he's ready to reap the rewards from gold mining
stocks in this current market, with approximately $840 million invested in the sector currently.
Gold miners are on the move, with several recent developments
coming out from such players as Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF),
Melkior Resources Inc. (TSXV: MKR) (OTCPK: MKRIF),
Troilus Gold Corp. (TSX: TLG) (OTCQX: CHXMF), New Gold
Inc. (NYSE-American: NGD) (TSX: NGD), and Agnico Eagle Mines
Limited (NYSE: AEM) (TSX: AEM).
The article continued: Following unchanged US Core Personal
Consumption Expenditures (PCE) data, gold held its ground above
US$3,300, despite some solid selling
pressure. Analysts at Morning Star Equity Research continue
to tout that the current high gold prices support gold miner
stocks, citing that when most miners' share prices fell in the
quarter in response to tariffs, gold miners rose.
Lake Victoria Gold (TSXV:
LVG) (OTCQB: LVGLF), an emerging East African gold developer, today
announced that it's taken a major step forward at its flagship
Tembo Project in Tanzania, signing
a non-binding Letter of Intent with Nyati Resources to
evaluate a potential small-scale gold development partnership.
"We are excited by the potential to leverage existing processing
infrastructure and local ore sources to create a scalable gold
production platform in Tanzania,"
said Marc Cernovitch, President and CEO of Lake Victoria Gold. "This proposed partnership
aligns with our strategy of unlocking near-term value while
continuing to advance our core exploration assets."
The proposed joint venture would combine mineralized material
from LVG's 100%-owned Mining Licences with Nyati's
existing 120 tonnes-per-day processing facility and a second 500tpd
plant currently under construction. A new special purpose vehicle
(SPV) is contemplated as the operating entity, structured to
accommodate Tanzania's 16% free
carried interest requirement. The agreement also includes an
exclusivity period of 60 days for due diligence and final
negotiations.
The LOI follows an earlier announcement that LVG was
evaluating small-scale development scenarios at Tembo, including
joint venture discussions with the operator of a CIP processing
facility located within one of the company's four Mining
Licences.
The company emphasizes that this initiative remains at an early
stage and is not based on a current mineral resource
estimate or Feasibility Study, and remains subject to significant
technical and economic uncertainties.
"Tembo has always stood out as a project with the potential to
deliver both near-term value and long-term discovery upside," said
Simon Benstead, Chairman and CFO of
Lake Victoria Gold.
"Evaluating this small-scale development opportunity allows us to
test the system, generate operational insights, and potentially
self-fund ongoing exploration. We believe this approach aligns well
with our disciplined strategy and our commitment to responsible,
phased development in Tanzania."
Located adjacent to Barrick
Gold's Bulyanhulu Mine, Tembo has seen over US$28 million in historical exploration,
including 50,000 meters of drilling. High-grade targets like Ngula
1, Nyakagwe Village, and Nyakagwe East remain open along strike and
at depth.
While Tembo is the long-range flagship, LVG's Imwelo
Project is positioned to lead in near-term development. Acquired
earlier this year, Imwelo is a fully permitted gold project west of
AngloGold Ashanti's Geita Gold
Mine. A 2021 pre-feasibility study and existing approvals
support a potential near-term path to construction.
Financially, LVG continues to build flexibility. In late
2024, the company signed a non-binding gold prepay term sheet with
Monetary Metals for up to 7,000 ounces—potentially providing
over US$20 million in non-dilutive
capital.
In February, LVG also completed the first tranche of a
three-stage strategic investment agreement with Taifa Group,
raising C$3.52 million at
C$0.22 per share. Richard Reynolds, former CEO of Taifa
Mining, has joined LVG's board as part of the
partnership.
The company also retains exposure to exploration upside through
its 2021 deal with Barrick, which includes up to
US$45 million in contingent milestone
payments. With early development optionality at Tembo, an advancing
construction-stage project at Imwelo, and strong strategic
partnerships, Lake Victoria
Gold is emerging as a standout name in East Africa's junior gold sector.
With small-scale development plans underway at Tembo, near-term
production potential at Imwelo, and upside exposure through its
Barrick partnership, Lake Victoria Gold is steadily carving out a
strong position in East Africa's
emerging gold sector.
CONTINUED… Read this and more news for Lake Victoria Gold
at:
https://equity-insider.com/2025/04/14/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:
Melkior Resources Inc. (TSXV: MKR) (OTCPK:
MKRIF) just hit its highest-grade gold result ever at its
Carscallen property near Timmins,
Ontario—intersecting 77.4 grams per tonne (g/t) of gold over 6.9
meters, including a stunning 1.2 meters at 445 g/t. This new
high-grade zone is located in the 1010 South Zone, a newer target
area about 1 km from previous drilling success.
"These results, the highest ever at the property, not only
demonstrate the continuity of the high-grade vein system along
strike and down-dip with the best drill intersections attained to
date, but also the potential that Carscallen holds when drilling
new zones," said Jim Deluce,
Director of Melkior. "The newly discovered bonanza grade
mineralization at the 1010 Gold Zone, together with our high-grade
gold prospects at Zamzam, Jowsey and Shenkman gold showings, truly
attest to the upside potential of the area for significant mineral
discoveries."
Troilus Gold Corp. (TSX: TLG) (OTCQX: CHXMF) recently
delivered its own record-breaking drill hit in its Southwest Zone,
intercepting 2.44 g/t gold equivalent over 56 meters—the best
result from this zone in the company's history.
"We are very encouraged by the latest results from the Southwest
Zone, which will be the first area mined when production begins,"
said Justin Reid, CEO of Troilus
Gold. "Hole SW-25-688 returned the highest linear-grade
intercept drilled to date in this zone, highlighting the continuity
of wide, high-grade mineralization in the core of the deposit.
Additionally, SW-25-679 encountered strong near-surface grades that
could further strengthen the early years of the mine plan. As the
campaign progresses, we look forward to sharing more results that
continue to improve confidence of the block model, de-risk the
early production years, and enhance the overall development plan
for the Troilus Project."
Troilus plans to continue drilling into mid-May to define
more high-grade pockets and test nearby anomalies with potential
for even richer ore.
New Gold Inc. (NYSE-American: NGD) (TSX: NGD) recently
posted a solid first quarter, generating $25
million in free cash flow and confirming it's on track to
meet full-year production goals.
"The first four months of the year have been exceptionally
positive for New Gold in achieving our strategic
objectives," said Patrick Godin,
President and CEO of New Gold. "We increased our future free
cash flow by consolidating our interest in New Afton to 100%. We
successfully refinanced and extended our senior notes and extended
our credit facility. During the quarter, we also delivered two new
Technical Reports outlining strong production profiles with lower
costs. Collectively, these milestones are expected to create
meaningful value for our shareholders and provide increased
financial flexibility and optionality for New Gold moving
forward.
The company completed key upgrades at both its Rainy River and New Afton mines, setting the
stage for stronger production in the second half of 2025. With
higher metal prices, strong copper output, and major debt
refinanced, New Gold says it's better positioned for growth
than it's been in years.
Agnico Eagle Mines Limited (NYSE: AEM) (TSX:
AEM) kicked off 2025 with strong gold production, low costs,
and record adjusted net income of $770
million. Free cash flow topped $594
million, boosting the company's cash reserves to over
$1.1 billion and leaving just
$5 million in net debt—effectively
debt-free.
"We've had an excellent start to the year with another quarter
of strong operating and financial results," said Ammar Al-Joundi, Agnico Eagle's President and
CEO of Agnico Eagle Mines. "This performance has allowed us
to further strengthen our balance sheet and has positioned us well
for the remainder of the year."
Major expansion projects at Canadian Malartic, Detour Lake, and
Upper Beaver are all advancing, while exploration drilling
continues to return strong gold grades. The company also released
its 16th annual Sustainability Report and declared a $0.40 quarterly dividend, underscoring its
commitment to both growth and shareholder returns.
Article Source:
https://equity-insider.com/2025/04/14/with-funding-commitments-in-place-a-gold-mine-is-being-built-and-this-stock-is-still-under-0-20/
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