London Symposium JV Video: Lake Victoria Gold nears capex update for Imwelo

Lake Victoria Gold: Immuel & Tumbbo Project Update - International Metal Symposium

Key Concepts:

• Immuel Project: A fully permitted, shovel-ready gold project in Tanzania with a 300,000 ounce resource.
• Tumbbo Project: Lake Victoria Gold’s flagship exploration project, contiguous to Barrick’s Bulyanhulu deposit.
• Capex/Opex: Capital Expenditure (initial investment) and Operational Expenditure (ongoing costs) for mining projects.
• Prefeasibility Study: An initial assessment of the viability of a mining project.
• Bonanza Grade: Exceptionally high concentrations of valuable minerals (in this case, gold).
• Indicated & Inferred Resources: Categories of mineral resource estimation based on geological confidence.

1. Immuel Project – Near-Term Production

Lake Victoria Gold recently acquired the Immuel project in February of this year from a private Australian group. The project is fully permitted and ready for development. While the total resource is estimated at 300,000 ounces of gold, the initial starter pit area, covering the first two years of production, boasts a higher grade of 3.7 grams per tonne. The overall average grade for the open-pitable resource is 2.4 grams per tonne. Historical drilling data indicates shallow depths, averaging only 50 meters, suggesting significant exploration potential at depth. Recent drilling results have confirmed continuity of the deposit down to 250 meters.

The company is currently updating a 2021 prefeasibility study, focusing on finalizing engineering, geotechnical drilling to optimize pit design, and refining capex and opex estimates. The estimated capital expenditure (capex) for construction is $15 million USD, with a projected 12-month construction period, aiming for production by early 2027.

2. Strategic Partnership with Tyifa Civils and Mining

During the bidding process for mining contracting work at Immuel, Lake Victoria Gold established a significant partnership with Tyifa Civils and Mining, the largest mining contractor in Tanzania. Tyifa is owned by Rost Maziz, a prominent Tanzanian businessman. This resulted in Tyifa becoming a substantial shareholder and partner in Lake Victoria Gold’s current projects, with a focus on identifying further acquisition opportunities within Tanzania, mirroring the company’s growth and consolidation strategy.

3. Tumbbo Project – Exploration Upside

The Tumbbo project is Lake Victoria Gold’s flagship exploration asset, located adjacent to Barrick Gold’s 20 million ounce Bulyanhulu deposit. The geological structure hosting Bulyanhulu extends onto Lake Victoria Gold’s property. Over 50,000 meters of drilling have been completed at Tumbbo, yielding intercepts with characteristics similar to Bulyanhulu, including high-grade results such as 15 meters at 23 grams per tonne.

In 2022, Lake Victoria Gold entered into an agreement with Barrick, selling some non-core claims while retaining upside potential. This agreement provides Lake Victoria Gold with payments upon discovery of indicated and inferred ounces by Barrick on the sold claims, rather than being tied to production levels.

4. Investment Pitch & Financial Outlook

Mark Chonovich, CEO of Lake Victoria Gold, highlighted the company’s potential for strong cash flow. He stated that, given the current gold price environment and the anticipated production from Immuel by early 2027, the company expects annual cash flows to exceed its current market capitalization within the next 12 to 18 months.

5. Notable Quotes

• Mark Chonovich: “...in this gold price environment…we’re looking at cash flows on an annual basis that exceed our market cap today.” – This statement emphasizes the company’s potential for significant financial returns.

6. Technical Terms Explained:

• Grams per tonne (g/t): A unit of concentration used to express the grade of gold in ore.
• Contiguous: Sharing a common boundary; adjacent.
• Market Cap: The total value of a company’s outstanding shares.

7. Logical Connections

The discussion flows logically from an overview of the Immuel project (near-term production) to the Tumbbo project (long-term exploration potential). The strategic partnership with Tyifa Civils and Mining is presented as a direct outcome of the Immuel acquisition, demonstrating a proactive approach to growth. The investment pitch serves as a concluding statement, tying together the potential of both projects and highlighting the company’s financial prospects.

8. Data & Statistics

• Immuel Resource: 300,000 ounces of gold at 2.4 g/t.
• Immuel Starter Pit Grade: 3.7 g/t.
• Immuel Capex: $15 million USD.
• Immuel Construction Period: 12 months.
• Tumbbo Drilling: Over 50,000 meters completed.
• Tumbbo Intercept: 15 meters at 23 g/t.
• Bulyanhulu Deposit: 20 million ounces of gold.
• Historical Immuel Drill Depth: Average of 50 meters.
• Recent Immuel Drill Depth: Continuity confirmed to 250 meters.

9. Conclusion

Lake Victoria Gold is positioned for growth through the near-term development of the Immuel project and the continued exploration of the highly prospective Tumbbo project. The strategic partnership with Tyifa Civils and Mining provides valuable local expertise and financial backing. The company’s financial outlook appears promising, with the potential for significant cash flow generation in the coming years, making it an attractive investment opportunity in the current gold market.