Growing Optimism in Gold Market Signals Opportunity for Miners
USA News Group News Commentary
Issued on behalf of Lake Victoria Gold Ltd.
VANCOUVER, April 30, 2025 - USA News Group News Commentary - Gold's ongoing rally is setting the stage for a potential breakout in mining stocks, according to analysts. Billionaire investor John Paulson has drawn fresh attention to the sector, recently backing an Alaskan gold mine with an $800-million investment, marking a bold move amid rising volatility. Trade tensions stirred by the U.S. White House have added fuel to the rally, propelling the Top 50 mining stocks group higher. Among the companies making waves with new developments are Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), Perseus Mining Limited (TSX: PRU) (OTCPK: PMNXF), Mandalay Resources Corp. (TSX: MND) (OTCQB: MNDJF), Aya Gold & Silver Inc. (TSX: AYA) (OTCQX: AYASF), and Goliath Resources Ltd. (TSXV: GOT) (OTCQB: GOTRF).
Even after recent gains, analysts argue that gold stocks remain undervalued, with economist Peter Schiff forecasting a possible new era of sector outperformance. Barron's has dubbed gold a "light in the investment darkness" as both institutional and retail demand continues to grow. Goldman Sachs now sees the metal climbing past US$3,700/oz by the end of 2025 - and potentially hitting US$4,000/oz by mid-2026.
Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF) recently announced it's evaluating a small-scale development opportunity aimed at generating early cash flow at its flagship Tembo Project in Tanzania, following the recent conversion of its Prospecting License into four Mining Licenses (MLs). Through its local subsidiary MIPCCL, the company is in discussions to form a joint venture with the operator of a privately commissioned CIP processing facility situated within one of Tembo's 4 MLs.
"This potential partnership could represent a unique opportunity to establish early, low-capital-cost production from Tembo while continuing to unlock the district's exploration upside," said Marc Cernovitch, President and CEO of Lake Victoria Gold. "We remain committed to advancing Tembo through both strategic exploration and disciplined project development."
The initiative remains conceptual and is not based on a current mineral resource estimate or a Feasibility Study demonstrating economic or technical viability. Any potential development remains highly speculative and subject to significant technical and economic uncertainties, including grade continuity, metallurgy, permitting, and financing.
"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."
Over the past year, LVG has made steady progress advancing its dual-asset strategy in the Lake Victoria Goldfield, one of East Africa's most historically productive gold regions. The company believes it now has many of the key regulatory, financial, and operational elements needed to support a phased transition toward development.
Tembo remains the long-range flagship. Located adjacent to Barrick Gold's Bulyanhulu Mine, the 100%-owned project has seen over US$28 million in historical exploration investment, including 50,000 meters of drilling. Results from Ngula 1, Nyakagwe Village, and Nyakagwe East have outlined multiple mineralized structures with high-grade intercepts that remain open along strike and at depth.
While Tembo holds the long-term growth potential, Imwelo is likely to lead LVG's near-term development. LVG acquired full control of Imwelo earlier this year, a project already holding a Mining License and key approvals from the Government of Tanzania. Located west of AngloGold Ashanti's Geita Gold Mine, Imwelo was previously the subject of an updated pre-feasibility study in 2021.
Early-stage development at Imwelo, if advanced successfully, could support operations while further work at Tembo continues. Financially, LVG continues to build flexibility, having signed a non-binding gold prepay term sheet with Monetary Metals in late 2024 for up to 7,000 ounces of gold, subject to conditions precedent-potentially providing upwards of US$20 million in non-dilutive construction capital at current prices.
In February, LVG also closed the first tranche of a three-stage strategic investment agreement with Taifa Group, Tanzania's largest mining contractor, raising C$3.52 million at a price of C$0.22 per share. As part of the relationship, Richard Reynolds, former CEO of Taifa Mining, joined LVG's board, adding regional and operational depth.
The company also retains exposure to upside through its 2021 deal with Barrick, having sold six non-core licenses for US$6 million upfront with up to US$45 million in contingent milestone payments tied to future discoveries. Barrick has since been actively drilling the ground, while LVG retains a back-end interest with no further capital outlay.
With early-stage development potential at Tembo, near-term advancement at Imwelo, and continued upside exposure through its Barrick deal, Lake Victoria Gold is increasingly well-positioned within the East African junior gold sector.
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:
In another major boost for Tanzania's mining sector, Perseus Mining Limited (TSX: PRU) has approved a Final Investment Decision to develop the Nyanzaga Gold Project (NGP) at a cost of approximately US$523 million. The large-scale open-pit mine is expected to pour first gold in Q1 2027 and produce more than 2 million ounces over an initial 11-year mine life at an average AISC of US$1,211/oz.
Perseus will fully fund construction from its existing US$801 million cash and bullion reserves, further signaling rising confidence in Tanzania's gold industry.
Mandalay Resources Corporation (TSX: MND) (OTCQB: MNDJF) recently agreed to merge with Alkane Resources in a transaction that will combine their assets into a mid-tier gold and antimony producer operating across Australia and Sweden.
"The Transaction presents a compelling opportunity for Mandalay shareholders to accelerate value creation through increased capital markets scale, liquidity and a growing diversified asset base," said Frazer Bourchier, President and CEO of Mandalay. "We are excited to have found a like-minded partner committed to the same principles. The Transaction aligns with our vision to create a mid-tier gold and antimony producer with mines in premier operating jurisdictions and with our strategy for continued growth."
The new Alkane Resources will target gold-equivalent production growth from ~160,000 ounces in 2025 to over ~180,000 ounces in 2026, backed by C$167 million in cash. The leadership team, led by Alkane's Nic Earner, will focus on delivering operational growth, exploration success, and a market re-rating through expanded scale and liquidity.
Aya Gold & Silver Inc. (TSX: AYA) (OTCQX: AYASF) recently announced it has completed its strategic transaction with Mx2 Mining, transferring the Amizmiz Gold Project in Morocco while retaining a 42.3% equity stake. Mx2, now fully capitalized with C$16 million raised, has established an operational base in Marrakech and launched an aggressive exploration program.
"This transaction creates value for all Aya shareholders by unlocking the potential of Amizmiz through a focused, well-capitalized partner - Mx2," said Benoit La Salle, President and CEO of Aya. "We view this as a terrific partnership that leverages Aya's platform in Morocco while maintaining meaningful exposure to upside through our equity interest and Board representation. Mx2's experienced team and aggressive exploration mandate will strongly complement Aya's growth strategy across the region."
Goliath Resources Limited (TSXV: GOT) (OTCQB: GOTRF) recently reported that a geological study from the Colorado School of Mines confirms its Surebet discovery is a Tier-1 Reduced Intrusion Related Gold (RIRG) system with significant upside. High-grade gold was found across 12 stacked shear-hosted veins and mineralized dykes, with drilling intercepts up to 34.5 g/t AuEq over 39 meters.
"Since our initial discovery at Surebet of an extensive outcropping zone of gold mineralization, followed by drilling below to make a discovery of a series of stacked gently dipping high-grade gold veins, and then a series of vertical dykes through the stacked veins, our understanding of the overall system has been aided by the great work by the team at the Colorado School of Mines," said Roger Rosmus, Founder and CEO of Goliath Resources. "The 2024 drilling season was our best ever, highlighted by visible gold in 92% of the holes drilled, including fine-grained to coarse-grained and abundant visible gold that got better as we drilled deeper into the discovery.
The study indicated both types of mineralization are tied to a shared Eocene-aged magmatic source at depth. With 100% of 243 drill holes hitting gold mineralization to date, Surebet continues to demonstrate strong expansion potential across its 1.8 km² footprint.
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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