Lake Victoria Gold Ltd. (TSXV: LVG, OTCQB: LVGLF, FSE: E1K) reports significant progress in the exploration program being conducted by industry giant Barrick Mining on the Tembo licenses in Tanzania. The company had ceded these licenses to the Barrick subsidiary in 2021 and negotiated an extensive success-based payment model, through which it would participate in future discoveries.
Bulyanhulu, a joint venture between Barrick and the Tanzanian government, has since been working to systematically assess the potential of the six properties. The goal is to identify further Bulyanhulu-like gold mineralization in the area. In the third quarter of 2025, Barrick focused on refining geological and structural models. At the same time, initial aircore drilling was commenced and a program of diamond and RC drilling was prepared, which is intended to capture the stratigraphic architecture along key trends in more detail.
Lake Victoria Gold and the Status of Work on the Tembo Properties
A central component of the Q3 program was a geophysical campaign. Bulyanhulu completed a total of 94 line kilometers of gradient array induced polarization (GAIP) measurement. The data obtained will be incorporated into updated structural and stratigraphic interpretations and is intended to help model conductive zones, faults, and potential mineralization zones more precisely. This is an important step, as GAIP, in combination with geological surveys, often makes visible those structures in which gold-bearing horizons are repeated or amplified.
Parallel to the geophysical program, Barrick launched an initial geochemical aircore drilling program in the Enze target area in the third quarter. By the end of the quarter, two drill fences with 19 holes and a total length of 419 meters had been sunk. A significantly more extensive program of a total of 945 aircore drillings over approximately 30,750 meters is planned.
Initial drill descriptions indicate an approximately 15-meter-thick weathering profile over basalts and felsic tuff sequences, into which quartz-veined and moderately foliated argillites are embedded. Smoky gray quartz veins and boxwork structures were observed in these intervals, which are interpreted as relics after sulfide-bearing mineralization. For Lake Victoria Gold, these early observations underscore that the Enze area is on the right track from a data acquisition perspective, even if no analysis results are yet available.
Drilling Planning: Focus on Reef Horizons and Structural Repetitions
In addition to the aircore campaign, Barrick advanced the planning of diamond core and RC drilling along the Itetemia trend during the reporting period. Five lines with diamond drilling and four with RC drilling are planned, which are initially intended to provide better stratigraphic penetration. The focus is on identifying and testing possible repetitions of the Reef-1 and Reef-2 horizons known from Bulyanhulu. These gold-bearing horizons are at the center of production in the neighboring mine and are considered an important reference for the regional geology.
The drilling along the Itetemia trend aims to capture fossil surfaces and folded stratigraphic sequences in which such reef horizons could be repeated several times by folding or tectonic offsets. The implementation of the diamond and RC program is scheduled for the fourth quarter of 2025. This would mean that Barrick would shift from predominantly model-driven work to a stronger drilling focus in the period up to the end of the year, which should significantly deepen the geological understanding in the Tembo Inlier.
For Lake Victoria Gold, the financial dimension of the Tembo program is also of significance. As of September 30, 2025, Barrick has incurred cumulative project expenditures of US$6.66 million on the licenses originally held by Lake Victoria Gold. A total budget of US$9 million is provided for in the underlying Asset Purchase Agreement, which means that a large portion of it has already been spent. However, the success-based payments beyond this are decisive: Under the agreement finalized in 2022, Lake Victoria Gold can receive up to US$45 million in the form of milestone payments in the event of success, provided that certain discovery or resource thresholds are reached on the Tembo licenses.
The management of Lake Victoria Gold expressly assesses Barrick’s ongoing work as technically sound and consistent. David Scott, Director and Managing Director Tanzania, emphasized that GAIP, aircore drilling, and the planned diamond and RC drilling are all aligned with a common goal: a systematic approach to Bulyanhulu-like gold mineralization. In his view, the combination of refined structural interpretation and deeper drilling increases the chance of developing a viable geological model that could enable a major discovery.
Lake Victoria’s President and CEO Marc Cernovitch clearly classifies the Tembo project as part of Lake Victoria Gold’s overall strategy. He points out that Barrick’s work sharpens the overall geological picture and deepens the understanding of those structures that host large gold systems in the Lake Victoria Gold Belt. While the company’s own Imwelo project is progressing towards development, Tembo offers Lake Victoria Gold additional exploration options and leverage in one of Africa’s most productive gold regions.
For Lake Victoria Gold, Tembo can thus be described as a long-term option in an environment in which several large-volume deposits have already been proven. From the company’s perspective, the structural position of the licenses in the vicinity of the Bulyanhulu operation and other known occurrences makes the project a strategically important component, even if the exploration path is still at an early stage and no resource estimates have yet been published.
Outlook: Continued AC Drilling and Completion of the Core Programs
Bulyanhulu has already outlined a clear roadmap for the fourth quarter of 2025. The aircore program on the Enze target is to be continued continuously until the planned drilling volume has been fully reached. At the same time, the diamond and RC drilling programs along the Itetemia trend are to be completed in order to obtain a more complete picture of the stratigraphic sequence and potential reef repetitions.
The evaluation and interpretation of the GAIP data will play a central role in this. It should help to further refine the drilling targets along the prioritized structures in the Tembo Inlier and to identify those areas in which geophysical anomalies, geological observations, and initial geochemical indications coincide. For Lake Victoria Gold, this means that a significantly better picture of the opportunities and risks on the divested licenses should emerge in the course of the coming year.
