With Billionaire Capital Flowing into Gold, Gold Mining Stocks May Be Next in Line for Revaluation
Equity Insider News Commentary
Issued on behalf of Lake Victoria Gold Ltd.
VANCOUVER, May 1, 2025 - 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 Ltd. (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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