Artisanal Miners Help Find High-Grade Gold Breakthrough Found at Tanzania Project
Lake Victoria Gold Ltd. (LVG:TSX; LVGLF:OTCQB; E1K:FSE) reports findings from a grab sampling initiative carried out at several active artisanal mining locations within its wholly owned Tembo Project in northwestern Tanzania. Is gold's price still heading up? Read the story to find out what experts say.
Lake Victoria Gold Ltd. (LVG:TSX; LVGLF:OTCQB; E1K:FSE) reported findings from a recent grab sampling initiative carried out at several active artisanal mining locations within its wholly owned Tembo Project in northwestern Tanzania, according to a December 18 release.
The ongoing artisanal activities throughout the license area have underscored several key targets, with grab samples yielding high-grade gold values reaching up to 35.45 grams per tonne gold (g/t Au). The sampling effort aimed to evaluate gold mineralization linked to current artisanal mining operations within the company's granted mining licenses and to refine drill targets in preparation for the upcoming Q1 2026 drilling campaign.
"The level of artisanal activity we're witnessing across Tembo is very encouraging and highlights several areas that have not been adequately tested by drilling in the past," said Lake Victoria Exploration Manager Hendrick Mering. "We now have multiple new targets that we're eager to get back on the ground to drill, and these results reinforce our view that Tembo hosts a large, structurally controlled gold system with significant exploration potential."
A total of eight active artisanal mining sites were visited and sampled. Grab samples were taken from exposed mineralized material at the surface and within shallow workings, the company said. Two of the sampled sites are newly identified areas, while two others align with targets defined through previous drilling programs, several of which have experienced limited or non-systematic drilling to date. Noteworthy results include:
Ngula 1: Up to 35.45 g/t Au and 12.94 g/t Au, confirming high-grade mineralization at LVG's primary Tembo target and reinforcing its priority status for imminent drilling.Ngula 2: Grab samples returning 35.21 g/t Au, 10.27 g/t Au, and 10.30 g/t Au, corroborating historical artisanal and exploration findings.Mgusu Target: Previously under-drilled area yielding values of 5.90 g/t Au, identifying a compelling new priority target.Nyangomango: Newly identified artisanal workings returning 7.86 g/t Au and 8.50 g/t Au.Nyakagwe East: Renewed artisanal activity returned 22.68 g/t Au and 3.16 g/t Au, supporting extensions of known mineralization to the northwest.New Priority Drill Targets Identified
Mineralization observed at sites with elevated gold values is consistently linked with smokey-grey quartz veins hosted in sheared basalts, with visible pyrrhotite and pyrite sulfides, the release noted. Active artisanal workings align along multiple structural trends, including northeast, northwest, and east-west orientations, consistent with the company's established structural interpretation for the Tembo license area.
Based on these findings, the company said it has identified three priority drill targets that have not previously received adequate drill coverage and warrant systematic follow-up. The artisanal workings in the project area are consistently covered by 4-10 meters of transported alluvium. They are invariably associated with linear magnetic anomalies trending east-west, northwest, or northeast. This underscores the prospectivity of the licenses along these trends with gold mineralization linked to all three directions.
With the goal of progressing toward near-term production, LVG said it intends to implement a closely spaced drilling program at Ngula 1, focusing on a 300- to 400-meter strike length that has consistently yielded high-grade results in both historical drilling and artisanal sampling.
The company previously announced a non-binding letter of intent with Nyati Resources Limited regarding potential gold processing arrangements at the Tembo Project. Building on this LOI, the Company is currently engaged in advanced discussions with Nyati about the potential use of the full capacity of an existing 500 tonne-per-day carbon-in-pulp processing plant located on one of LVG's mining licenses. These discussions aim to establish a toll-processing arrangement that could pave the way for near-term production from the Tembo Project, contingent upon the completion of confirmatory drilling, permitting, and the execution of a definitive agreement.
The company said it aims to finalize a binding agreement in early 2026. The planned drilling program is expected to begin in Q1 2026.
"With an LOI in place with Nyati, our focus has shifted decisively toward execution," said President and Chief Executive Officer Marc Cernovitch. "We are moving from exploration to execution. The high-grade samples at surface confirm the system's potential, while our engagement with Nyati Resources offers a tangible path to process that material. Our focus is squarely on defining the resource at Ngula 1 and finalizing a processing agreement that leverages existing infrastructure to minimize capital output."
Analyst: Country Is World's 4th-Largest Gold Producer
According to a research note by Red Cloud Securities Analyst Alina Islam dated Nov. 27, the company announced initial outcomes from the ongoing drilling campaign at its advanced-stage Imwelo gold project in northwestern Tanzania, which have extended mineralization beyond the current pit shell. "Management is working to get this fully permitted project into production," Islam wrote.
At the time of Islam's report, Lake Victoria Gold was trading at approximately CA$0.17 per share (CA$0.17/share), the analyst noted. "Advancing Imwelo towards start-up to generate cash flows and successful exploration at Tembo should drive the stock price," Islam wrote.
Tembo is another of Lake Victoria Gold's projects, situated in the Lake Victoria Goldfield, also in northwestern Tanzania. Currently, Red Cloud does not have a rating or target price on the Canadian junior miner.
Islam highlighted that Tanzania is the world's fourth-largest gold producer. The two largest producers with projects there are AngloGold Ashanti Ltd. (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) and Barrick Mining Corp. (ABX:TSX; B:NYSE). In fact, Imwelo is only 12 kilometers to the west of AngloGold's Geita gold mine, the largest producing gold mine in the country.
The Catalyst: Gold's Most Significant Surge in Decades
Gold prices held steady on Thursday as traders processed significant U.S. inflation data and a series of major central bank decisions, Peter Nurse reported for Investing.com on December 18. At 09:15 a.m. ET, spot gold dipped 0.1% to US$4,336.54 per ounce, and gold futures for February also decreased by 0.1% to US$4,370.30 per ounce.
Metal markets experienced some profit-taking after a sharp rally over the past week due to growing uncertainty about the U.S. economy, particularly as official government reports offered mixed signals regarding the labor market, Nurse noted. The Federal Reserve's asset purchasing activities also raised some questions about market liquidity in the country.
Despite this, U.S. inflation rose less than anticipated in November but remained above the Federal Reserve's target, as the first set of price data was released since the government shutdown ended in mid-November. According to the Bureau of Labor Statistics (BLS) on Thursday, the U.S. consumer price index in November increased by 2.7% on an annual basis, down from the 3.0% figure reported in September and below the expected 3.1% growth.
According to a report by Reuters on December 17, gold has experienced its most significant surge since the 1979 oil crisis in 2025, with prices doubling over the past two years, a performance that might have previously suggested predictions of a major correction.
However, a growing pool of investors and factors ranging from U.S. policy to the conflict in Ukraine have led analysts at JP Morgan, Bank of America, and consultancy Metals Focus to now anticipate gold reaching US$5,000 per ounce in 2026, Reuters said.
Streetwise Ownership Overview*
Lake Victoria Gold Ltd. (LVG:TSX; LVGLF:OTCQB; E1K:FSE)
*Share Structureas of 10/24/2025BofA strategist Michael Widmer noted that expectations of further gains or portfolio diversification are fueling the buying, driven by U.S. fiscal deficits, efforts to reduce the U.S. current account deficit, and a weak dollar policy, the report said.
Philip Newman, managing director at Metals Focus, added that additional support comes from concerns about the independence of the U.S. Federal Reserve, trade disputes, and geopolitical issues, including the war in Ukraine and Russia's interactions with NATO countries in Europe.
Ownership and Share Structure1
About 28% is owned by management and insiders, institutions own 15%, shares issued for the acquisition of Imwelo include 12.3%, the TAIFA Group owns 8.2%, and Barrick Mining Corp. (ABX:TSX; B:NYSE) owns 3%. The rest is retail.
Top shareholders include AIMS Asset Management with 8.76%, Rostam Aziz with 8.2%, Simon Charles Benstead with 7.47%, Concept Capital Management Ltd. with 5.83%, and Walter David Scott with 3.08%.
Its market cap is CA$39.03 million. It has 195.16 million shares outstanding, according to the company, and trades in a 52-week range of CA$0.13 and CA$0.25.
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Important Disclosures:
Lake Victoria Gold Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Lake Victoria Gold Corp., Barrick Mining Corp., and Anglogold Ashanti Plc.Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
Ownership and Share Structure InformationThe information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.