By 
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]
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