en.Wedoany.com Report, On March 18, Lake Victoria Gold Ltd. (LVG:TSX; LVGLF:OTCQB; E1K:FSE) announced metallurgical test results from drill core samples from the C Zone of its Imwelo Project in the northern part of the Lake Victoria Goldfield in Tanzania. The tests indicate gold recoveries of approximately 96-97% using standard gravity concentration and cyanide leaching techniques, confirming the mineralization is predominantly free-milling, which significantly reduces processing risks.
The company's President and CEO, Marc Cernovitch, stated: "These metallurgical results are a significant milestone in advancing the Imwelo Project towards production. The test work confirms the mineralization is predominantly free-milling, with a significant gravity-recoverable gold component and cyanide recoveries reaching up to approximately 97%. Importantly, these results are highly consistent with earlier metallurgical programs, providing a technical basis for final plant design."
Highlights of the tests include gold recoveries up to approximately 97% in bottle roll cyanide leaching, a gravity-recoverable gold component of 42-47%, and about 84% of the gold being directly leachable by cyanide. These findings support a processing route through conventional gravity and carbon-in-leach (CIL) circuits, enhancing confidence in the project's economics.
Testing conducted by Nesch Mintec Tanzania Ltd., including diagnostic leaching and gravity-recoverable gold tests, confirmed Imwelo's gold can be efficiently recovered using conventional processes. Ore hardness tests showed a Bond Work Index of approximately 22.9 kWh/t, indicating medium-hard rock that can be managed in typical grinding setups for the region.
The fully permitted Imwelo Project is located in the Lake Victoria Goldfield, just 12 km from AngloGold Ashanti's Geita gold mine. The company is incorporating these results into mine planning, processing plant design, and engineering studies to advance towards near-term production.
Regarding analyst views, Red Cloud Securities' Alina Islam noted on March 19 that these tests are an important de-risking milestone, with consistency with historical data increasing confidence in recovery uniformity. Atrium Research analysts reiterated a Buy rating and a C$0.50 target price on March 18, stating the tests significantly de-risk the project and support plans for construction to begin later in 2026.
On the gold market, reports on March 19 showed gold prices making a modest recovery after hitting lows, supported by a weaker US dollar but constrained by the Fed's hawkish stance. Geopolitical factors and inflation pressures influence gold's appeal as a hedge, but some analysts expect gold may retest higher price ranges.
The ownership structure shows management and insiders hold approximately 28%, institutions hold 15%, and other shareholders include Imwelo Acquisition, Taifa Group, and Barrick Mining Corp. The company has a market cap of approximately C$47.99 million with 195.31 million shares outstanding.
