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LVG: Metallurgy Testwork Further De-risks Imwelo

What you need to know:
• LVG confirmed free-milling mineralization at Imwelo Area C with gold recoveries of up to ~97% via conventional gravity + cyanide leaching.
• ~84% of gold is directly cyanide-leachable, while ~42-47% is gravity recoverable, supporting early-stage recovery ahead of the CIL circuit.
• Results were consistent with historical programs (2013, 2014, 2017), de-risking metallurgy as LVG moves forward with final plant design ahead of construction later this year.
• We recently re-initiated coverage on LVG; read our full report here.

This morning, Lake Victoria Gold (LVG:TSXV, LVGLF:OTCQB) announced results from metallurgy testing completed on drill core samples from the recently completed Area C drilling, which confirmed potential pit expansions (see our note here). Testing yielded overall gold recoveries up to ~96-97% and confirmed mineralization is substantially suitable for free-milling via conventional gravity concentration and cyanide leaching. The results support past testwork and further de-risk the metallurgical profile of the Imwelo Project, as it advances toward near-term gold production. We are maintaining our BUY rating and target price of $0.50/share on Lake Victoria Gold.

Results reinforced that mineralization at Imwelo is suitable for a conventional gravity and carbon-in-leach processing circuit, which is one of the most widely used and understood methods of gold processing. The proposed flowsheet outlines primary crushing, grinding to a P80 of ~75 µm, gravity concentration via centrifugal concentrators, and cyanide leaching of gravity tails in a CIL circuit (simplified flowsheet outlined below). We would also highlight that recoveries of ~96-97% is a strong result for an open pit operation. Further, most of the gold can be directly recovered from cyanide leaching, confirming Imwelo’s mineralization is substantially non-refractory.

The program covered diagnostic leach testing, GRG testing, bottle roll cyanide leaching, intensive leaching of gravity concentrates, cyanidation of gravity tails, and BWI determination. Diagnostic leach results show ~84% of gold is directly cyanide-leachable, with only minor sulphide or carbonaceous association, confirming free-milling mineralization, while GRG testing confirmed a strong gravity recoverable gold component of ~42-47%, supporting early-stage recovery ahead of the CIL circuit. BWI testing returned ~22.9kWh/t, indicating moderately hard fresh rock common in Archean greenstone deposits across the Lake Victoria Goldfield, which accommodate these conventional mining circuits, further supporting results.