Issued on behalf of Lake Victoria Gold Ltd.
Sterilization drilling commences mid-May ahead of construction at the fully-permitted Imwelo Gold Project in Tanzania. Supported by committed and structured financing initiatives through the next development stage. Catalyst calendar tightens through Q3 2026.
VANCOUVER, British Columbia, May 07, 2026 (GLOBE NEWSWIRE) -- CanadaNewsGroup.com News Commentary — Lake Victoria Gold Ltd. (TSXV: LVG) (OTCQB: LVGLF) (FSE: E1K) ("LVG" or the "Company") has confirmed the mobilization of reverse circulation ("RC") drill rigs to the Imwelo Gold Project in Tanzania, with a ~21-day sterilization drilling program scheduled to commence mid-May. The program represents a defined pre-construction workstream rather than a discovery-oriented campaign, and is sized to support final infrastructure placement across planned plant and site facilities.[1]
INVESTMENT HIGHLIGHTS
Permitting status: complete. Imwelo is fully permitted for mine construction and production, an attribute that places LVG in a narrowing cohort of development-stage gold names that have cleared the principal regulatory variable.[2]
Funding stack: secured and advancing toward close. In April 2026, LVG closed a binding term sheet for a gold loan facility of up to US$25 million from Monetary Metals — backed by up to 6,000 ounces of gold and repayable in gold rather than cash — alongside a fully committed C$3.8 million convertible debenture financing led by a long-term significant shareholder. The convertible carries a 5.0% annual coupon, converts at $0.30 per share, and includes half-warrants exercisable at $0.40.[3]
Pre-construction drilling underway. The current ~1,050 metre RC sterilization program comprises ~500 metres at the proposed plant area (10 holes to ~50m depth), ~550 metres at the accommodation and stores area (11 holes to ~50m depth), and additional testing of NW and EW trending magnetic anomalies. Program duration is approximately three weeks. Results will inform final site layout, engineering design, and development sequencing.[1]
Process recoveries: up to ~97% . Imwelo metallurgical work has confirmed gold recovery rates of up to ~97% using conventional methods — a critical de-risking input for the projected low-capex open-pit operation.[4]
Resource expansion potential: supported by recent drilling. A completed Area C drill program returned grades including 11.88 g/t gold over 1.33 metres from 169.75m and confirmed mineralization extending beyond the current pit design at depth and laterally. Geotechnical and specific-gravity studies have supported potential consolidation into a single open pit design.[5]
Macro tailwind: structural. World Gold Council projections place 2026 central bank purchases at approximately 850 tonnes, a level consistent with the elevated multi-year purchasing pace.[6] J.P. Morgan Global Research has projected gold pushing toward $5,000 per ounce by Q4 2026.[7] State Street's April 2026 Gold Monitor reports sovereign gold reserves at an all-time high of 2,309 tonnes.[8]
PROJECT FRAMEWORK
Imwelo Gold Project (100% LVG). Located west of AngloGold Ashanti's Geita Gold Mine in Tanzania's Lake Victoria Goldfield. Fully permitted for mine construction and production. Historical resource estimates and a JORC 2021 pre-feasibility study underpin the development thesis. The project is positioned as a near-term development opportunity in a jurisdiction where mining investment climbed to US$9.79 billion in 2024, attracting a substantial share of total foreign capital flowing into the country's key sectors.[9]
Tembo Project (100% LVG). Located adjacent to Barrick's Bulyanhulu Mine, with over 50,000 metres of drilling completed. Recent surface artisanal sampling returned grades up to 35.45 g/t gold.[10] Tanzania's government has formally begun incorporating its statutory 16% free-carried interest in the Tembo mining licences, a required regulatory step that signals project advancement through the country's established framework.[11] LVG is also advancing discussions toward a binding toll-milling agreement with Nyati Resources at Tembo, opening a path to potential early cash flow without heavy upfront capital.[11]
MANAGEMENT COMMENTARY
Marc Cernovitch, President & CEO of Lake Victoria Gold, on the sterilization program:
"Mobilizing drill rigs to site marks another important step as we advance Imwelo toward development and construction. This program is focused on de-risking the project at the infrastructure level, ensuring that key facilities are optimally located ahead of construction. With engineering work progressing in parallel, we continue to move Imwelo forward in a disciplined manner toward near-term production."[1]
CATALYST CALENDAR
Q2 2026: Sterilization drilling completion (May–June). Final detailed site layout and engineering design incorporating drill results.[1]
Q2–Q3 2026: Advancement of final pit design and mine planning, including scheduling and sequencing of initial mining areas. Ongoing geotechnical and engineering work, including slope stability analysis, pit wall design, and near-surface material characterization.[1]
Q2–Q3 2026: Site access and infrastructure development, including roadwork and site preparation. Closing of project financing initiatives associated with the gold loan facility.[1][3]
Pending: Finalization of binding toll-milling agreement with Nyati Resources at Tembo, which would open a path to early cash flow.[11]
OWNERSHIP & ALIGNMENT
Management, directors, and strategic partners collectively own more than 60% of outstanding shares.[12] Strategic equity investors and partners include Barrick Gold and the Taifa Group — Tanzania's largest mining contractor, with over 30 years of in-country experience. Taifa Mining will conduct contract mining and civil works for the Imwelo project.[12]
KEY RISKS
Production decision risk: Imwelo has been the subject of JORC-compliant PEA, PFS, and updated PFS work, but these foreign-code studies are not current under NI 43-101 and the Company has not completed a feasibility study establishing mineral reserves under CIM Definition Standards. Any decision to commence production therefore involves increased uncertainty and a higher risk of economic and technical failure. Additional risks include variations in grade and recovery, geotechnical or metallurgical challenges, cost overruns, financing availability, and operational, regulatory, or permitting risks.[13]
BOTTOM LINE
LVG presents an unusual profile in the development-stage gold space: fully permitted, funded through near-term construction milestones, with drill rigs on site executing a defined pre-construction workstream. The Q2–Q3 2026 catalyst sequence is concentrated and on a clear schedule. The Tembo toll-milling pathway provides optionality on early cash flow. The principal investor consideration is the Production Decision Risk noted above, which is being actively addressed through the engineering, geotechnical, and infrastructure programs disclosed for the months ahead.
NOTE: For a Cautionary Note on Production Decision, please see the Disclaimer below.
Read this and more news for Lake Victoria Gold at: https://usanewsgroup.com/lvg-landing
In other industry developments and happenings in the market include:
Skeena Gold & Silver (TSX: SKE) (NYSE: SKE) on April 10, 2026 completed an offering of US$750 million aggregate principal amount of 8.500% Senior Secured Notes due 2031, in what the Company described as the first pre-revenue mining company in more than a decade to successfully complete a public high-yield notes offering.[14]
The transaction refinanced Skeena's prior project financing package and funded a partial buyback of its existing gold stream. The notes are non-callable for the first two years, with semi-annual interest payments. The refinancing cancelled and replaced an undrawn US$350 million Senior Secured Loan and a US$100 million Cost Overrun Facility, and funded the repurchase of approximately 66.67% of Skeena's existing US$200 million Gold Stream for US$184 million — an action the Company stated would materially improve future operating margins, increase exposure to gold prices, and enhance overall project economics. Skeena's Eskay Creek Gold-Silver Project in B.C.'s Golden Triangle is fully permitted and under construction, with initial production and cash flow targeted for Q2 2027.[14]
Eldorado Gold (NYSE: EGO) (TSX: ELD) reported solid first quarter 2026 financial and operational results on April 30, 2026, with Skouries steadily advancing towards first concentrate production.[15]
Eldorado produced 100,358 ounces of gold in Q1 2026 and sold 100,619 ounces at an average realized price of $4,891 per ounce, generating revenue of $532.4 million. Total cash costs were $1,470 per ounce sold and all-in sustaining costs were $1,942 per ounce. Total capital expenditures were $318.0 million, including $135.6 million of project capital invested at Skouries focused on major earthworks, infrastructure construction, and accelerated operational capital. The Company maintained its 2026 annual production guidance of 490,000 to 590,000 ounces of gold, with production weighted to the second half of the year.[15]
OceanaGold Corporation (TSX: OGC) (NYSE: OGC) on April 1, 2026 announced results from six drill holes at Wharekirauponga in New Zealand, confirming continuity and extension of a newly defined southern high-grade zone with intercepts including 14.9 metres at 16.3 g/t gold, 5.4 metres at 25.8 g/t gold, and 5.5 metres at 24.1 g/t gold.[16]
The newly defined southern high-grade zone currently spans approximately 150 metres of strike, encompasses seven drill holes averaging above 160 gram-metres, and remains open in multiple directions. The new high-grade zone sits outside current Mineral Reserves and is located closer to the planned underground access. Three drill rigs are operating at Wharekirauponga, with the Company expecting to add an additional two drill rigs during the second quarter of 2026 on new drill platforms following permit approval received in December 2025. OceanaGold commenced trading on the New York Stock Exchange under the ticker “OGC” on April 7, 2026, with the OTCQX listing discontinued.[16]
FURTHER READING: https://usanewsgroup.com/lvg-landing
CONTACT:
CANADA NEWS GROUP
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SOURCES:
- Lake Victoria Gold Ltd. — "Lake Victoria Gold Advances Imwelo Toward Construction with Commencement of Site Sterilization Drilling," May 2026.
- Lake Victoria Gold Ltd. — Imwelo Project corporate page, https://lakevictoriagold.com/our-projects/imwelo-project/
- Lake Victoria Gold Ltd. — "Lake Victoria Gold Secures up to a US$25 Million Gold Loan from Monetary Metals plus Fully Committed $3.0 Million Convertible Debenture Financing," April 2026.
- Lake Victoria Gold Ltd. — "Lake Victoria Gold Confirms up to Approximately 97% Gold Recovery and Free Milling Metallurgy at the Imwelo Gold Project."
- Lake Victoria Gold Ltd. — "Lake Victoria Gold Completes Imwelo Area C Drill Program Confirming Pit Expansion Potential and Advancing Project Toward Near-Term Production," and "Lake Victoria Gold Advances Final Pit Design with Completion of Geotechnical and Specific Gravity Studies at Imwelo."
- World Gold Council — Goldhub commentary, March 2026.
- J.P. Morgan Global Research — Commodities outlook, gold prices.
- State Street Global Advisors — Gold Monitor, April 2026.
- The Citizen — “Tanzania’s mining sector leads in attracting foreign direct investments,” April 2026, https://www.thecitizen.co.tz/tanzania/news/national/tanzania-s-mining-sector-leads-in-attracting-foreign-direct-investments-5423864
- Lake Victoria Gold Ltd. — "Lake Victoria Gold Reports High-Grade Artisanal Sampling Results up to 35.45 g/t Au and Advances Development Planning at Tembo."
- Lake Victoria Gold Ltd. — News releases 2026, https://lakevictoriagold.com/news-releases-2026/
- Lake Victoria Gold Ltd. — “About” corporate page (shareholder structure and strategic partnerships), https://lakevictoriagold.com/about/
- Lake Victoria Gold Ltd. — Cautionary Note on Production Decision, as reproduced in the Disclaimer section of this commentary; original disclosure on Company press releases.
- Skeena Resources Limited — “Skeena Gold & Silver Completes US$750 Million Senior Secured Notes Offering & Optimizes Capital Structure,” GlobeNewswire, April 10, 2026, https://www.globenewswire.com/news-release/2026/04/10/3271785/0/en/Skeena-Gold-Silver-Completes-US-750-Million-Senior-Secured-Notes-Offering-Optimizes-Capital-Structure.html
- Eldorado Gold Corporation — “Eldorado Gold Reports Solid First Quarter 2026 Financial and Operational Results; Skouries Steadily Advancing Towards First Concentrate Production,” April 30, 2026, https://www.eldoradogold.com/investors/news-releases/eldorado-gold-reports-solid-first-quarter-2026-financial-and-operational
- OceanaGold Corporation — “OceanaGold Confirms Continuity and Extension of Newly Defined Southern High-Grade Zone at Wharekirauponga,” April 1, 2026, https://oceanagold.com/news/oceanagold-confirms-continuity-and-extension-of-newly-defined-southern-high-grade-zone-at-wharekirauponga
DISCLAIMER:
Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Canada News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. (MIQ). MIQ has been paid a fee for Lake Victoria Gold Ltd. advertising and digital media. There may also be 3rd parties who may have shares of Lake Victoria Gold Ltd. and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Lake Victoria Gold Ltd and reserve the right to buy and sell, and will buy and sell shares of Lake Victoria Gold Ltd. at any time without any further notice commencing immediately and ongoing. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material, including this article, has been approved by Lake Victoria Gold Ltd. Technical information relating to Lake Victoria Gold Ltd. has been reviewed and approved by David Scott, Pr. Sci. Nat., a Qualified Person as defined by National Instrument 43-101. Mr. Scott is a registered member of the South African Council for Natural Scientific Professions (SACNASP) and is a Director of Lake Victoria Gold Ltd., and therefore is not independent of the Company.
Cautionary Note on Production Decision:
Although Imwelo has been the subject of JORC-compliant PEA, PFS and updated PFS work, these foreign-code studies are not current under NI 43-101. The Company has not completed a feasibility study on Imwelo that establishes mineral reserves demonstrating economic and technical viability and is not treating the JORC-based estimates or analyses as current under CIM Definition Standards. Any decision to commence production is not based on a feasibility study of mineral reserves and therefore involves increased uncertainty and a higher risk of economic and technical failure. There is no certainty that the planned low-capex open-pit operation will be economically viable or that production will occur as anticipated. Risks include, without limitation, variations in grade and recovery, unexpected geotechnical or metallurgical challenges, cost overruns, funding availability, and operational, regulatory, or permitting risks. This is a paid advertisement, we currently own shares of Lake Victoria Gold Ltd. and will buy and sell shares of the company in the open market, or through private placements, and/or other investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
