Lake Victoria Gold updates Tembo Project, Tanzania
Lake Victoria Gold Ltd. [TSXV: LVG] provided an update on an important milestone in the advancement of its Tembo Project, located in the Lake Victoria goldfield of northern Tanzania, following the successful conversion of its prospecting licence into four mining licences (MLs).
This milestone marks a significant advancement in Lake Victoria Gold’s strategy to unlock the potential of Tembo, which has already benefited from over US$28 million in exploration expenditures, including 50,000 metres of diamond and RC (reverse circulation) drilling. The conversion from a prospecting licence to four mining licence grants Lake Victoria Gold the legal right to develop and produce from the Tembo project. Key provisions include that each mining licence is valid for 10 years, with the option of a further 10-year renewal.
“The approval of our mining licences is a pivotal step forward for the Tembo project,” said Marc Cernovitch, president and CEO. “We have always believed in the district-scale potential of this asset. With tenure now secured for the next 10 years, we can focus on evaluating the most efficient development options to unlock maximum shareholder value. This is a transformational moment for the company and its stakeholders.”
Exploration and development progress: To date, over $28 million has been invested in exploration at Tembo, with a primary focus on three high-priority targets.
Ngula 1 – a 250-metre-wide zone with multiple subparallel mineralized shear structures, extending at least 600 metres in strike length, open at depth and along strike; drill intercepts include 3.13 g/t gold over 25.89 metres; 8.50 g/t Au over 5.14 m; 22.18 g/t Au over 15.00 and 8.17 g/t Au over 11.05 m.
Nyakagwe Village – featuring multiple south-dipping mineralized structures over a 600-metre strike length, with drill results such as 78.1 g/t Au over 1.00 m; 24.72 g/t Au over 1.45 m; 16.57 g/t Au over 3.55 m; 27.88 g/t Au over 3.88 m and 12.96 g/t Au over 5.54 m.
Nyakagwe East – a 300-metre-wide zone with quartz veining and sulphide mineralization, returning grades including 6.5 g/t Au over 7.46 m; 19.1 g/t Au over 3.00 m; 10.25 g/t Au over 3.50 m; 9.73 g/t Au over 3.40 m and 8.44 g/t Au over 1.30 m.
The results of historical and recent drilling campaigns confirm the open-pit and underground potential and the presence of high-grade gold mineralization, with structural modelling continuing to enhance resource targeting.
With the mining licences secured, Lake Victoria Gold is actively evaluating multiple development pathways, including near-term production opportunities: several areas within the four MLs contain shallow high-grade mineralization suitable for potential development. Nearby third party processing facilities offer the opportunity to fast-track production. A review is under way to determine the most efficient development plan, including the potential for a further stand-alone processing facility in the medium term.
Exploration upside and resource growth: A new RC drilling program is being planned to convert historical high-grade intersections into resources. The Goldspot study identified 38 priority exploration targets, highlighting the district-scale potential of Tembo.
Future fieldwork, including pitting, trenching and shallow RAB (rotary air blast) drilling, will continue to test the anomalies and targets with the potential to host additional gold mineralization.
Strategic partnerships and transactional upside: Given the Tembo project’s close proximity to Barrick Gold’s Bulyanhulu mine, Lake Victoria Gold continues to evaluate strategic and corporate transactions that could unlock shareholder value and accelerate development. Discussions, including potential joint ventures or financing partnerships, are continuing and could provide the capital and expertise needed to advance the project more rapidly.
A strong foundation for such partnerships was laid in December, 2021, when Lake Victoria Gold (formerly Tembo Gold) completed a strategic transaction with Bulyanhulu Gold Mine Ltd. (Buly), a joint venture between Barrick Gold Corp. and the government of Tanzania. Lake Victoria Gold sold six non-core prospecting licences adjacent to the Bulyanhulu mine for US$6 million in cash, plus up to US$45 million in contingent payments tied to future discoveries of up to five million ounces of gold. The terms include $20/oz on the first million ounces discovered, $10 /oz on the second million ounces and $5/oz on subsequent ounces.
This transaction not only provided non-dilutive capital to advance the Tembo project but also preserved significant upside exposure to exploration success on the divested ground. It further demonstrated the strategic importance of Lake Victoria Gold’s land position and the strong interest from major operators in the region.
Simon Benstead, executive chairman of Lake Victoria Gold, commented: “We believe Tembo represents a rare opportunity to define a new gold camp in one of Tanzania’s most historically productive districts. With multiple exploration and development levers available to us and a supportive regulatory environment, we’re committed to responsibly unlocking the full value of this high-potential asset.”
Lake Victoria Gold is s principally focused on growth and consolidation in the prolific and prospective Lake Victoria goldfield in Tanzania.
The company has a 100% interest in the Tembo project, which has over 50,000 metres of drilling and is located adjacent to Barrick’s 20-million-ounce Bulyanhulu mine. The company also holds a 100% interest in the Imwelo project, which is a fully permitted gold project west of AngloGold Ashanti’s Geita gold mine. With historical resource estimates and a 2021 prefeasibility study, the project is fully permitted for mine construction and production, positioning it as a near-term development opportunity.