Lake Victoria Gold’s Tembo Project Holds Nearly 600,000 Ounces of Gold in Tanzania

Lake Victoria Gold has reported an initial mineral resource of nearly 600,000 ounces of gold at its Tembo project in Tanzania, located next to Barrick Mining’s Bulyanhulu gold mine.

The maiden resource marks a significant development for the Tembo gold project and has shifted the asset toward active development and further exploration.

The company reported 2.69 million tonnes grading 1.16 grams of gold per tonne (g/t) in the indicated category, containing approximately 99,700 ounces of gold.

The project also contains 13.33 million tonnes grading 1.12 g/t gold in the inferred category, representing approximately 480,100 ounces of contained gold.

Combined, the resource contains about 579,800 ounces of gold.

Tembo Gold Project Located Near Barrick’s Bulyanhulu Mine

The Tembo project is located in Tanzania’s Sukumaland greenstone belt, approximately 600 km north-northwest of Dodoma.

The project covers 34 square kilometres across four granted mining licences and has a long exploration history, with more than 50,000 metres of drilling completed to date.

The initial mineral resource covers three near-surface deposits:

• Ngula 1
• Nyakagwe Village
• Nyakagwe East

The deposits are contained within conceptual pit shells and remain open along strike and at depth, providing opportunities for further resource growth.

Higher-Grade Core Could Support Early Gold Production

Using a 1 g/t gold cut-off, Tembo contains 1.07 million indicated tonnes grading 2 g/t gold, representing approximately 68,600 ounces of contained gold.

The project also has 4.79 million inferred tonnes grading 2.15 g/t gold, containing approximately 331,700 ounces.

The higher-grade material could become important to Lake Victoria Gold’s development strategy because it may allow the company to prioritize higher-grade areas during the early stages of production.

Mining analyst Ben Pirie of Atrium Research said the higher-grade core could potentially help improve early cash flows and support further expansion.

Ngula 1 to Lead Planned Drilling Campaign

Lake Victoria Gold plans to begin a 5,000-metre close-spaced drilling campaign at Ngula 1, which represents the largest of the three deposits included in the initial resource.

Ngula 1 extends approximately 600 metres along strike and contains about 56% of Tembo’s inferred gold ounces and 63% of its indicated ounces.

Drilling at the deposit has so far reached depths of approximately 200 metres.

The company believes additional drilling could help improve its understanding of the deposit and potentially expand the mineral resource.

Tembo Could Benefit From Nearby Toll-Milling Facility

Lake Victoria Gold is also advancing a previously announced toll-milling agreement with privately held Nyati Resources.

The proposed arrangement involves a 500-tonne-per-day processing plant located on a Tembo licence next to Barrick’s Bulyanhulu mine.

Access to third-party processing could provide Lake Victoria Gold with a potential pathway to production without having to build a new processing facility from scratch.

This could become particularly important if the company successfully defines sufficient higher-grade material at Tembo.

Lake Victoria Gold Advances Two Tanzanian Gold Projects

Tembo is one of two major projects Lake Victoria Gold is advancing in Tanzania.

The company’s other key asset is the Imwelo gold project, located west of AngloGold Ashanti’s Geita mine.

Imwelo has a resource of approximately 300,000 ounces of gold. The company has previously indicated that the project could produce average grades of around 3.7 g/t gold during its first two years of mining.

Lake Victoria Gold is targeting first gold from Imwelo in 2027, although the company has not yet completed a feasibility study for the project.

Tembo Strengthens Lake Victoria Gold’s Growth Strategy

The new resource could strengthen Lake Victoria Gold’s strategy of becoming a multi-asset gold producer in Tanzania.

With both Tembo and Imwelo advancing, the company has the potential to develop multiple sources of future gold production and cash flow.

The Tembo resource also provides a new foundation for additional exploration, particularly because all three deposits remain open along strike and at depth.

Lake Victoria Gold Shares Rise After Resource Announcement

Following the resource announcement, Lake Victoria Gold shares rose 8.9% to approximately C$0.31 in Toronto during Tuesday morning trading.

The move valued the company at approximately C$62 million (US$44 million). Over the previous year, the stock had traded between approximately C$0.16 and C$0.36.

The market reaction reflects investor interest in the scale of the Tembo resource and the possibility of developing the project alongside Imwelo.

What’s Next for the Tembo Gold Project?

Lake Victoria Gold’s immediate priorities include the planned 5,000-metre drilling campaign at Ngula 1, continued exploration across the Tembo property, and advancement of the proposed toll-milling arrangement with Nyati Resources.

The company will also continue developing Imwelo as it works toward potential first production in 2027.

With nearly 600,000 ounces of gold already identified, additional drilling and potential access to nearby processing infrastructure could make Tembo an increasingly important part of Lake Victoria Gold’s Tanzanian portfolio.

Image: Drilling on a Lake Victoria Gold property in Tanzania. Credit: Lake Victoria Gold via Facebook.