In 2022, Lake Victoria Gold (WKN A3E4WC / TSXV LVG) sold part of its gold properties in Tanzania to Bulyanhulu Gold Mine Limited, a joint venture between gold giant Barrick Gold and the government of the East African state.
Since then, Buly has been advancing the exploration of the project, primarily targeting extensions of mineralization similar to those found on its own property. Using a combination of aircore drilling (AC), geochemical screening, and reverse circulation drilling (RC), they have now refined target areas and confirmed the prospectivity of the most important geological structures.
Particularly promising results were achieved in the Enze target area, where geochemical and geological investigations based on aircore results were continued in the third and fourth quarters. This allowed for the further development of geological and geochemical signatures that support the potential for extensions of Bulyanhulu-style mineralization.
Geological Model Confirmed
The drilling program conducted by Barrick / Buly is reported to have confirmed the assumed geological model, characterized by basalt, tuff, and argillite formations along the basalt-tuff contacts, as well as quartz-feldspar porphyry intrusions.
Additionally, locally moderate shearing, quartz veins, and up to 1% pyrite were observed, consistent with the interpreted geophysical structures, further confirming the prospectivity of the project area. In the Enze target area, reverse circulation drilling identified gold anomalies within basalts and felsic tuffs along moderate stress zones, warranting further drilling in the second to fourth quarters of this year!
Potential for Satellite Deposits
Reports from Barrick / Buly also indicate that the continuation of aircore and geochemical investigations in the fourth quarter of 2024 revealed potential for new, additional satellite deposits.
With the work completed by the end of last year, Barrick / Buly has invested approximately $4.157 million in exploring the license areas acquired from Lake Victoria. In total, they have committed to investing $9 million over a four-year period in the exploration of these strategically located areas near the Bulyanhulu gold mine.
This was part of the purchase agreement, as were conditions that include the potential for LVG to receive up to $45 million (!) in payments, depending on the future discovery of mineral deposits.
Simon Benstead, Executive Chairman and CFO, emphasizes that Barrick / Buly’s work further demonstrates the potential scale of the project. He stated that systematic drilling had succeeded in mapping critical geological structures that could contain significant gold mineralization. Benstead added that Barrick’s willingness to make payments of up to $45 million to Lake Victoria Gold further underscores the value of the project and the strategic partnership.
In light of the activities conducted in 2024 and their results, Barrick / Buly is now planning an expanded drilling program for the current year, including further reverse circulation drilling in the Enze target area to better define and expand known gold anomalies. This will be complemented by additional geochemical surveys to identify new priority targets and the integration of geophysical data to refine mineralization models and improve target acquisition.
