en.Wedoany.com Reported - Lake Victoria Gold (TSXV: LVG) shares rose after the company released an initial resource estimate for its Tembo project in Tanzania, located near Barrick's (TSX: ABX; NYSE: B) Bulyanhulu gold mine, with a combined nearly 600,000 ounces of gold resources.

The Tembo project hosts indicated resources of 2.69 million tonnes at 1.16 grams per tonne gold, containing 99,700 ounces, plus inferred resources of 13.33 million tonnes at 1.12 g/t gold, containing 480,100 ounces. Lake Victoria Gold disclosed the figures in a statement on Tuesday.

The resource estimate covers three near-surface deposits—Ngula 1, Nyakagwe Village, and Nyakagwe East—all within conceptual open-pit shells and open along strike and at depth. The Tembo project is located approximately 600 kilometres north-northwest of Dodoma, Tanzania's capital.

Tembo and Imwelo are the two core projects Lake Victoria Gold is advancing in Tanzania. CEO Mark Cernovitch told The Northern Miner in December that Imwelo is ready for construction. That project, located west of AngloGold Ashanti's (NYSE: AU) Geita mine, hosts approximately 300,000 ounces of gold resources with an average grade expected at 3.7 g/t in the first two years of production.

Atrium Research mining analyst Ben Pirie said in a report that Tuesday's announcement "marks a significant shift for Lake Victoria Gold and the Tembo project—from a relatively stalled project, awaiting Barrick's exploration of surrounding licenses to trigger contingent payments, to an active development project with an updated resource and near-term potential toll milling opportunities." Pirie believes Tembo will be a key component of Lake Victoria Gold's goal to become a multi-asset junior gold producer in Tanzania. With progress at Imwelo and Tembo, the company is well positioned to create meaningful value through gold production and cash flow.

Lake Victoria Gold has not yet completed a feasibility study for Imwelo.

On Tuesday morning, Lake Victoria Gold's Toronto-listed shares rose 8.9% to approximately C$0.31, giving the company a market value of roughly C$62 million (US$44 million). The stock has traded between C$0.16 and C$0.36 over the past year.

At a 1 g/t cut-off grade, Tembo also hosts indicated resources of 1.07 million tonnes at 2 g/t gold, containing 68,600 ounces, and inferred resources of 4.79 million tonnes at 2.15 g/t gold, containing 331,700 ounces. Ngula 1 extends approximately 600 metres along strike and hosts about 56% of Tembo's inferred resources and 63% of its indicated resources, making it the first priority area for the planned 5,000-metre infill drilling program. The deposit has been drilled to a depth of approximately 200 metres to date.

Lake Victoria Gold is also continuing to advance its previously announced toll milling agreement with private company Nyati Resources. The agreement involves a 500-tonne-per-day processing plant located within the Tembo licence area near the Bulyanhulu mine.

Pirie said Tembo's high-grade core "reflects Lake Victoria's potential to generate cash flow in early production to fund expansion and other possible plans." He added that Ngula 1's high-grade core, combined with nearby third-party processing capacity, represents a realistic near-term path to producing gold from Tembo. That path could add another asset for the company beyond Imwelo before Imwelo achieves first gold in 2027, and substantially reduce overall project risk.

The Tembo project is located in the Sukumaland greenstone belt, covers 34 square kilometres, and holds four granted mining licences. The project has a long exploration history with cumulative drilling exceeding 50,000 metres, and a 2020 comprehensive study identified 39 exploration targets within the block.