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LVG: Exploration Update & Mining License Submission

What you need to know:
• LVG announced an update on Barrick Gold’s exploration activities on the claims surrounding the Tembo Project, which LVG carries interest in.
• On September 4th, the Company announced submission of all documentation for the 10-year renewal and transfer of the Imwelo Mining License. The acquisition should close by the end of September.
• Once the Mining License is officially transferred, it will trigger the second tranche of investment from the TAIFA group ($3.8M).

This morning, Lake Victoria Gold (LVG:TSXV) announced an update on the Q1 and Q2 exploration activities conducted by Bulyanhulu Gold Mine Limited, the partnership between Barrick and the Tanzanian Government, on the licenses LVG sold to Barrick in 2022 (which surround LVG’s Tembo Gold Project). The partnership has so far spent $451K of its proposed exploration expenditure of $3M for ‘Year 3’ which spans from April 22, 2024 to April 21, 2025. Fieldwork resumed in Q2 with the deployment of two drill rigs to the northwest area of the licenses. Additional drilling is scheduled for Q3. We are maintaining our BUY rating and $0.45/share target price on Lake Victoria Gold Ltd.

We remind readers of the agreement between Barrick Gold and LVG in which LVG agreed to sell 100% interest in six of LVG’s non-core prospecting licenses. Within the agreement, Barrick committed to spend US$9M on exploration activities and a sliding scale of payments to LVG based on resource definition milestones. Within the sliding scale portion of the agreement, LVG can receive up to US$45M in a bull-case scenario (read our initiation report here for more detail).

The update stated that exploration was significantly hampered in Q1 due to an abnormally wet season. Despite this, preliminary RAB drill results from Q4/23 showed promising anomalous gold values along geophysical features. These features are believed to be geological contracts associated with quartz veins, similar to that of Bulyanhulu. Work in Q2 focused on the Kalemero prospect area, targeting potential extensions of Bulyanhulu mineralization. Early results from this drilling confirm the presence of shearing, quartz veining and minor pyrite sulphide mineralization. LVG’s technical team is excited about the results from the drilling in Q3 as it will further define the potential scope and scale of mineralization in these areas.