VANCOUVER, BC, May 16, 2025 /PRNewswire/ -- Despite a short-lived correction earlier this week, gold prices quickly recovered in what's being called uncertainty-fueled "gold fever". While major gold miners reaped the benefits of a strong Q1 gold price performance, gold stocks of all sizes are moving the needle with developments of their own, including recent updates from Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), Gold Resource Corporation (NYSE-American: GORO), Contango Ore, Inc. (NYSE-American: CTGO), Vox Royalty Corp. (NASDAQ: VOXR), and SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM).

According to DoubleLine Capital CEO Jeff Gundlach (better known as "Bond King"), ongoing gold price rally isn't over, as the precious metal could climb as high as $4,000 per ounce. JPMorgan analysts recently made waves with a bold outlook, suggesting that if just 0.5% of U.S.-held foreign assets shifted into gold, prices could climb as high as $6,000 per ounce by 2029, while Goldman Sachs believes we could see spikes as high as $4,500 this year alone.

Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF) is quietly advancing its gold ambitions in Tanzania with a practical, near-term approach. The company recently brought in Nesch Mintech Tanzania—a respected third-party firm—to help evaluate a local gold processing plant that could play a key role in early production. This comes on the heels of a non-binding Letter of Intent (LOI) with Nyati Resources to explore a small-scale development pathway. Nesch's review will assess how ready the plant is to run, how much gold it's likely to recover, and what upgrades might unlock even better results.

"Engaging Nesch Mintech at this stage ensures we bring third-party rigour and transparency to the commissioning process, which is fundamental to assessing the Nyati opportunity," said Marc Cernovitch, President and CEO of Lake Victoria Gold. "We are excited by the potential to leverage existing processing infrastructure and local ore sources to create a scalable gold production platform in Tanzania."

If the partnership moves forward, LVG would begin sending mineralized material from its fully owned Mining Licences to be processed at Nyati's 120-ton-per-day plant, alongside a new 500-ton-per-day facility that's nearly ready. Together, these two plants could form the backbone of a centralized gold processing hub—giving both companies a faster, lower-capex path to first production.

"This audit is an important milestone as we advance this most compelling near-term gold development opportunity," said Simon Benstead, Executive Director of Lake Victoria Gold. "By combining strategic processing infrastructure with high-potential development targets, the proposed joint venture has the potential to unlock meaningful value for all stakeholders. We look forward to working closely with Nesch Mintech to validate the plant's performance and move confidently toward execution."

While still early-stage and not yet backed by a current resource estimate or Feasibility Study, the proposed initiative gives LVG a chance to test its geology in a real-world setting. As with any small-scale venture, key risks remain—especially around grade consistency, metallurgy, permitting, and funding. If successful, this low-cost strategy could unlock near-term cash flow and help fund further exploration. The agreement with Nyati builds on LVG's earlier announcement that it was exploring small-scale development options at its flagship Tembo Project, located right next to Barrick's high-grade Bulyanhulu mine.

Tembo is no stranger to serious exploration, with over US$28 million already invested and more than 50,000 metres of drilling completed. Several key zones—including Ngula 1, Nyakagwe Village, and Nyakagwe East—remain open along strike and at depth, underscoring the project's long-term growth potential.

"Tembo has always stood out as a project with the potential to deliver both near-term value and long-term discovery upside," said Benstead. "Evaluating this small-scale development opportunity allows us to test the system, generate operational insights, and potentially self-fund ongoing exploration."

LVG continues to build momentum by aligning capital, partnerships, and near-term development opportunities. While Tembo remains the company's long-term discovery engine, its newly acquired Imwelo Project is the most advanced asset in the pipeline. Fully permitted and supported by a 2021 pre-feasibility study, Imwelo is located near AngloGold Ashanti's Geita Mine and appears well suited for streamlined development and construction.

To help advance development, Lake Victoria Gold signed a non-binding gold prepay term sheet with Monetary Metals in late 2024. The agreement provides upfront, non-dilutive capital in exchange for a portion of future gold production at a discount, aligning repayment with the project's output. The structure allows LVG to access value equivalent to up to 7,000 ounces of gold, with proceeds earmarked for construction and early development work.

In early 2025, the company also closed a C$3.52 million investment tranche from Taifa Group at C$0.22 per share, part of a broader C$11.52 million three-stage financing. As part of that partnership, former Taifa CEO Richard Reynolds joined LVG's board, bringing additional regional experience and leadership.

Looking ahead, LVG also holds a milestone-based earn-in agreement with Barrick worth up to US$45 million, tied to future exploration success at Tembo. With plant audits in progress, a joint venture under review, and a growing financial toolkit, Lake Victoria Gold is positioning itself as one of the more compelling junior developers in East Africa.

CONTINUED… Read this and more news for Lake Victoria Gold at: https://equity-insider.com/2025/04/14/with-funding-commitments-in-place-a-gold-mine-is-being-built-and-this-stock-is-still-under-0-20/