Issued on behalf of Lake Victoria Gold Ltd.
VANCOUVER – Baystreet.ca News Commentary – Spot prices climbed back above $4,000 per ounce this week following a brief dip[1], maintaining momentum that has seen the metal gain over 50% year to date as companies accelerate activity across every stage of development. The sustained strength creates compelling economics not only for established producers capturing expanding margins but also for exploration firms launching new drilling campaigns and development companies advancing construction timelines on permitted projects[2]. Companies positioned to capitalize on this favorable environment include Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), Fortuna Mining Corp. (NYSE: FSM) (TSX: FVI), Montage Gold Corp. (TSX: MAU) (OTCQX: MAUTF), Soma Gold Corp. (TSXV: SOMA) (OTCQX: SMAGF), and G2 Goldfields Inc. (TSX: GTWO) (OTCQX: GUYF).
JPMorgan analysts maintain their bullish outlook with projections of bullion reaching $5,055 per ounce by the fourth quarter of 2026, supported by Federal Reserve rate cuts and central bank purchases[3]. Companies advancing construction and development projects are benefiting from improved project economics as every dollar increase in the price flows directly to bottom-line returns[4], while exploration companies find renewed investor interest in grassroots discoveries and advanced drilling programs across prolific mining districts worldwide.
Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF) is accelerating momentum at its fully permitted Imwelo Gold Project in Tanzania, announcing the mobilization of a second drill rig to fast-track completion of the pivotal Area C drilling campaign.
Following successful completion of the first three holes of the planned 4,000-metre program, the first two holes have been submitted for assay with results expected next week. The addition of a second multipurpose rig will enable the company to complete the current program by the second week of December 2025.
"Momentum continues to build at Imwelo," said Marc Cernovitch, President and CEO of Lake Victoria Gold. "We've completed three holes with assays pending on the first two, and with a second rig now on site, we're moving quickly to deliver continuous results through November and December as we refine the final pit design and advance toward production readiness."
The campaign addresses critical pre-construction objectives: locking in definitive pit design with granular engineering inputs, upgrading classification of existing historical gold resources, testing for mineralization beyond currently mapped zones, developing operational mining schedules, and refining gold recovery optimization.
Early visual observations are validating expectations.
"Drilling at Area C is progressing well, and we're very encouraged by what we're seeing in the core to date," said Hendrick Mering, Exploration Manager for Lake Victoria Gold. "The first three holes have intersected multiple zones of quartz veining and alteration consistent with our modeled mineralized horizons."
The opening hole penetrated deeper than prior drilling, testing Area C mineralization at roughly 120 metres depth on the western edge of the zone. Historical assays from this vicinity include 6.8 metres at 14.6 g/t gold at 32m and 2.0 metres at 7.5 g/t from 22m, confirming production-grade gold potential.
The drill acceleration follows LVG reaching a pivotal agreement in principle with the Government of Tanzania on the statutory minimum 16% free carried interest. With environmental approval of the Updated Environmental and Social Management Plan also secured, the regulatory pathway is cleared for construction advancement.
Situated just 12 kilometers from AngloGold Ashanti's flagship Geita mine, Imwelo operates under a 10-year renewable mining license with proven metallurgical recoveries surpassing 90%. Critically, Lake Victoria Gold targets first gold production within 12 months of breaking ground.
Financial momentum was secured by LVG with the closing of its oversubscribed $6 million financing in September, immediately followed by a concurrent $2 million private placement. The combined capital is fueling key work programs designed to trigger the pre-paid forward purchase facility with Monetary Metals, targeting non-dilutive construction financing.
Beyond Imwelo, the Tembo Project delivers significant optionality via a planned 3,000m drilling program at Ngula 1, where historical intercepts of 28.57 g/t gold over 3 metres signal immediate toll milling opportunity. The company retains exposure to up to US$45 million in contingent milestone payments from the 2021 asset sale to Barrick's Bulyanhulu operation.
The timing proves strategic. With gold recently surpassing $4,300 per ounce for the first time in history, Lake Victoria Gold is mobilizing equipment at a fully permitted project in one of Africa's premier gold districts precisely when high-grade ounces command maximum value.
NOTE: For a Cautionary Note on Production Decision, please see the Disclaimer below.
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:
Fortuna Mining Corp. (NYSE: FSM) (TSX: FVI) has released a robust Preliminary Economic Assessment for its Diamba Sud Gold Project in Senegal, showing an after-tax NPV of $563 million and internal rate of return of 72% at $2,750 per ounce gold. The assessment projects average annual production of 147,000 ounces over the first three years at an all-in sustaining cost of $904 per ounce, with construction capital estimated at $283.2 million and a payback period of just ten months.
"The PEA highlights the strong value Diamba Sud brings to Fortuna's portfolio, using a long-term gold price of $2,750 per ounce," said Jorge Ganoza, President and CEO of Fortuna Mining. "With permitting and the Definitive Feasibility Study underway, we expect to make a construction decision in the first half of 2026."
The company has approved a $17 million budget for early construction works including camp expansion and detailed engineering, with five drill rigs currently focused on expanding mineralization and upgrading Inferred resources to Measured and Indicated categories. Fortuna reported liquidity of $537.3 million and a net cash position of $214.8 million as of the second quarter of 2025, positioning the company to fund project development.
Montage Gold Corp. (TSX: MAU) (OTCQX: MAUTF) is rapidly advancing construction at its flagship Koné project in Côte d'Ivoire, with more than $418 million of capital committed to date representing approximately half of the total upfront capital expenditure, and construction milestones including six CIL tanks erected achieved approximately two months ahead of schedule. The company has commenced construction of an oxide circuit expected to provide enhanced operational flexibility and the potential to advance first gold pour, while Indicated Resources for satellite deposits have grown by 404,000 ounces to 924,000 ounces at 1.32 g/t gold.
"We are very pleased with the rapid progress being made to unlock value at our Koné project in Côte d'Ivoire, which is tracking well on-schedule for first gold in Q2-2027 and on-budget," said Martino De Ciccio, CEO of Montage Gold. "The Koné project already ranks as one of the largest gold projects currently under construction globally and continues to demonstrate optionality to further improve in quality."
Montage Gold has implemented an owner-operated mining model supported by a $75 million equipment financing facility, expected to improve operating efficiencies while providing strategic mine planning flexibility to quickly integrate new satellite deposits into the mine plan. The company has completed 4.5 million construction hours with key milestones including mill foundations, water supply infrastructure, and resettlement approaching completion, with the delivery of the ball mill to site in Q1-2026 marking the next significant milestone.
Soma Gold Corp. (TSXV: SOMA) (OTCQX: SMAGF) reported positive ore sorting results from tests conducted on mineralized material from the Cordero Mine in Antioquia, Colombia, with a 1,200kg bulk sample reduced by 70% to 570kg while increasing grade by 275% from 7.45 g/t to 20.44 g/t gold and accounting for 90% of the gold in the bulk sample. The sensor-based sorting technology evaluation conducted at the Steinert Latinoamericana Test Center in Brazil demonstrated that Cordero Mine ore is amenable to sorting and can achieve desired gold-grade targets with high mass recovery.
"We are extremely pleased with the results of the sorting test," said Mark Bren, VP Operations of Soma Gold. "Ore sorting has the potential to significantly impact our operation by allowing us to increase gold production without adding plant capacity. Installing this equipment at each of the El Bagre and El Limon Mills could effectively double throughput and ounces produced, reducing reliance on either mill to maintain planned production levels."
The company's El Limon Mill has resumed production and is expected to contribute an estimated 500-1,000 ounces of gold per month, with plans to reach nameplate capacity of 200 tonnes per day by year-end. Negotiations to end the work stoppage at Soma Gold's El Bagre Mill and Cordero Mine continue with the assistance of the Colombian Ministry of Labor, with November 7 marking the 60th day since the strike began when the matter proceeds to binding arbitration under Colombian law.
G2 Goldfields Inc. (TSX: GTWO) (OTCQX: GUYGF) is set to release a maiden PEA and combined updated Mineral Resource Estimate for its Oko Gold Project in Guyana in November, based on 666 diamond drill holes totaling 170,329 meters with a drilling cut-off date of August 31, 2025. The company has identified visible gold within two of five maiden drill holes in a new border zone, with drilling underway using several rigs testing multiple high priority targets across the +105,000-acre land package.
"Clearly, there remains very considerable exploration upside on this +105,000-acre land package," said Patrick Sheridan, Executive Chairman of G2 Goldfields. "We will be systematically adding drilling capacity to reach six rigs operating by December, and we intend to have eight rigs operating in the New Year. In tandem, we fully expect the PEA to demonstrate the potential for a very robust standalone operation and thus, we will be advancing the Project to a production decision as fast as possible, while continuing to add ounces, through both further extensional drilling to existing zones and new, near-mine untested areas."
The company is rapidly moving to de-risk the Oko Gold Project by completing additional environmental and geotechnical studies in support of advancing permitting activities, while the anticipated completion of the G3 spin-out is expected in December. G2 Goldfields has developed eight high priority near-mine resource growth and discovery drill target areas following a comprehensive review of existing data and completion of a drone-assisted geophysical survey over the entire property.
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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SOURCES CITED:
1. https://investinglive.com/news/gold-creeps-back-up-above-4000-as-dip-buyers-move-quick-to-make-themselves-heard-20251029/
2. https://www.prnewswire.com/news-releases/gold-hits-4-300-creating-opportunity-across-the-mining-sector-302590021.html
3. https://www.mining.com/gold-price-could-reach-5055-by-q4-2026-says-jpmorgan/
4. https://idahocapitalsun.com/2025/10/23/at-central-idahos-stibnite-gold-mine-crews-start-initial-construction/
