The exploration and development company active in Tanzania, Lake Victoria Gold (TSXV: LVG; FRA: E1K), could potentially generate cash flow from gold production much earlier than previously thought. Surprisingly, the recent considerations do not concern the Imwelo development project, but rather the company’s own Tembo project in the neighborhood of Barrick’s world-class Bulyanhulu mine, which only received its mining license a few days ago. As the company reports, the owner of a local processing plant has signaled interest in collaboration!
Their privately operated Carbon-in-Pulp (CIP) plant was recently commissioned, with a second, larger plant under construction. After expanding capacity, the plant is expected to process up to 620 tons per day (~30 t/h). This plant is located on a Processing License (PCL) within one of Tembo’s Mining Licenses (ML). The PCL owner has expressed interest in forming a joint venture to mine and process material from the Tembo mining license. A non-binding letter of intent is currently being drafted to guide ongoing discussions.
Lake Victoria points out that the discussions are still in an early stage. The company also makes it clear that the considerations are not based on a feasibility study with proven mineral reserves (as with Imwelo), but rather correspond to the pragmatic approach in private mining in Tanzania. In the past, extensive artisanal mining has already been carried out on the entire Tembo property, including shallow open-pit and underground mining operations, as well as the extraction of surface gold deposits. These historical works naturally do not meet the requirements of the Canadian NI 43-101 quality standard. However, the Tembo project hosts several promising targets, with significant near-surface gold intersections already confirmed in Ngula 1, Nyakagwe East, and Nyakagwe Village.
Marc Cernovitch, President and CEO of Lake Victoria Gold, commented: “This potential partnership could represent a unique opportunity to build early production at Tembo while further unlocking the exploration potential of the district. We aim to advance Tembo through strategic exploration and disciplined project development.”
Conclusion: With a gold price near $3,400, it’s easy to imagine that a new gold rush is underway in Tanzania. Lake Victoria Gold is one of the very few surviving exploration companies in Tanzania. Through its presence since 2011, the company has formed extremely valuable partnerships. Recently, Taifa Mining, the largest private mining company in Tanzania, acquired a 10 percent stake in Lake Victoria. Against this background, one can understand why the operator of a local processing plant is interested in collaborating with Lake Victoria. The question facing Lake Victoria is: Should they follow the Western path to the end and first finance a lengthy feasibility study (with what?), or should they seize the opportunity when local partners simply want to take advantage of the moment and make money n o w? Lake Victoria Gold shows courage in taking the unconventional path – why not conduct mining in Tanzania in the Tanzanian way, as long as employee safety and environmental considerations are guaranteed? The cash flow from a small production of 620 tons per day could be substantial for the future joint venture partners and perhaps sufficient to advance both exploration at Tembo and the development of Imwelo. Surely neighbor Barrick, also a shareholder in Lake Victoria, will be closely watching the developments. We are eager to see how this unfolds.
