Wedoany.com Report on Feb 7th, Lake Victoria Gold Ltd. issued a press release on February 5th, announcing that its Imwelo gold project in the Lake Victoria Goldfields of northern Tanzania has completed recent drilling work and received all assay results. With project permits approved and key technical plans completed, the Imwelo Zone C is systematically advancing towards construction readiness and initial production. 
The drilling results confirmed the down-dip continuity of mineralization below the current pit design and identified new mineralized extensions both west and east of the planned open pit. The company stated that these discoveries significantly enhance confidence in the geological model and are a key step forward for advancing final pit optimization and development planning.
Mark Chernovec, President and CEO of the company, said: "These results further validate the potential of Imwelo as a near-term production asset. We have demonstrated continuity of mineralization beyond the current pit design, both at depth and laterally, which strengthens the credibility of the geological model underpinning the development plan. The drilling provides the technical data needed to advance final pit design, resource conversion, and mine planning, moving the project from the definition phase towards the execution phase."
Hendrick Mering, Exploration Manager, added: "The geology aligns perfectly with our interpretation. We observed consistent mineralization, alteration, and structural continuity across multiple zones and depths, including beyond 250 meters below surface. Confirming mineralization east and west of the pit further highlights the potential for resource growth and reinforces the robustness of the Zone C mineralized system."
The drilling results matched the grade and width of holes supporting the existing historical resource model, increasing confidence in upgrading resources from the Inferred to the Indicated category and potentially adding to the Measured resource classification. Drilling confirmed down-dip mineralization along the entire pit design, with geological continuity now demonstrated over a vertical depth exceeding 250 meters, compared to the historical resource limit of approximately 200 meters. The completed drill holes provided an average vertical intersection depth of about 120 meters, more than double the historical drill intersection depth of around 50 meters.
According to Lake Victoria Gold, 21 of the planned 24 drill holes have been completed, with sample analysis conducted by MSA Labs in Geita. The company stated that the completion of the work program substantially advances Imwelo towards production readiness. Final pit design, geotechnical de-risking, grade control planning, and metallurgical verification are fundamental for mine construction and project financing. The company is advancing a financing strategy aimed at minimizing equity dilution and matching capital with near-term cash flow.
In a report dated February 5th, Ben Pirri, an analyst at Atrium Research, noted that the drilling successfully confirmed continuity of mineralization below the open pit design and identified extensions to the west and east. He wrote: "The company has now completed its key work program, which provides greater confidence for advancing the final pit design as it systematically moves the project towards near-term construction and initial production." He maintained a Buy rating and a C$0.50 per share target price for Lake Victoria Gold, implying approximately a 67% potential return.
In an update on February 6th, Alina Islam, an analyst at Red Cloud, stated that the drilling highlights further resource growth and conversion potential at Imwelo. She wrote: "We are encouraged that management is working towards bringing this fully permitted project into production as soon as possible, with a planned initial production rate of 12,000 ounces of gold (ramping up to 24,000 ounces of gold) and an estimated all-in sustaining cost of US$1,400 per ounce." The company's focus will now shift to completing an updated Mineral Resource Estimate for the project, followed by detailed engineering work in preparation for a Pre-Feasibility Study.
Regarding the ownership structure, approximately 28% of shares are held by management and insiders, institutions hold 15%, shares issued for the acquisition of Imwelo account for 12.3%, the TAIFA Group holds 8.2%, Barrick Gold Corporation holds 3%, with the remainder held by retail investors. The company's market capitalization is approximately C$51.76 million, with 195.31 million shares outstanding.
