Gold's Return to $3,400 Spurs Sector Gains Amid $4,000 Forecasts
- Gold price has recovered to $3,300, with major institutions forecasting significant upside to $3,700-$5,000 by 2028
- Company secured C$3.52 million strategic investment from Taifa Group at C$0.22 per share
- Non-dilutive gold prepay agreement secured for up to 7,000 ounces with Monetary Metals
- Potential partnership with Nyati Resources could provide access to existing processing infrastructure
- Company has potential milestone-based payments of up to US$45 million from Barrick agreement
- Tembo Project development lacks current mineral resource estimate and Feasibility Study
- Partnership with Nyati Resources is still in LOI phase with significant technical and economic risks
- Project development subject to Tanzanian Government's 16% free carried interest requirement
Insights
Centerra's Kemess resource update and mining strategy shift appear positive, but remain early-stage developments with economic assessment pending.
Centerra Gold's updated mineral resource at Kemess now contains 2.7 million ounces of indicated gold and 971 million pounds of indicated copper. The most significant technical development is their shift from a block cave mining approach to longhole open stoping, which fundamentally changes the development strategy.
This methodological pivot is technically meaningful. Block cave mining requires substantial upfront capital and infrastructure but delivers very low operating costs at scale. Longhole stoping, while more selective, typically requires lower initial capital investment but operates at smaller scale with potentially higher unit costs. This suggests Centerra is prioritizing reduced execution risk and potentially faster development timelines over maximum resource extraction efficiency.
The existing infrastructure at Kemess is a major advantage, including a 50,000 tpd processing plant and 380km power line. These assets represent hundreds of millions in potential savings compared to greenfield development and significantly de-risk the project from a capital perspective.
The company's decision to proceed with a Preliminary Economic Assessment (PEA) using an open pit and underground stoping concept indicates they're still early in the evaluation process, with completion expected by end-2025. This timeline suggests any production decision remains years away.
While the resource size is substantial, the press release doesn't provide grade information, making it difficult to assess the quality of these ounces. In the current strong gold price environment (around $3,300/oz), previously marginal projects can become economically viable, potentially improving Kemess's prospects if the forthcoming PEA demonstrates robust economics.
Equity Insider News Commentary
Issued on behalf of Lake Victoria Gold Ltd.
After the world's biggest gold-buying market (
Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), a junior gold developer focused on
"We are excited by the potential to leverage existing processing infrastructure and local ore sources to create a scalable gold production platform in
The partnership under evaluation would bring together mineralized material from LVG's
This LOI builds on LVG's earlier disclosure that it was exploring small-scale development opportunities at Tembo, within the company's four Mining Licences.
While still in the early stages, this initiative is part of a broader strategy to assess near-term development options. The company notes that it is not underpinned by a current mineral resource estimate or Feasibility Study, and remains subject to meaningful technical and economic risks.
"Tembo has always stood out as a project with the potential to deliver both near-term value and long-term discovery upside," said Simon Benstead, Chairman and CFO of Lake Victoria Gold. "Evaluating this small-scale development opportunity allows us to test the system, generate operational insights, and potentially self-fund ongoing exploration. We believe this approach aligns well with our disciplined strategy and our commitment to responsible, phased development in
Bordering the prolific Bulyanhulu Mine operated by Barrick, the Tembo Project has benefited from over
While Tembo represents the company's long-term growth anchor, the Imwelo Project is positioned to be the first mover in LVG's portfolio. Acquired earlier this year, Imwelo is fully permitted and strategically located near AngloGold Ashanti's Geita Gold Mine. A 2021 pre-feasibility study and existing approvals suggest a potentially streamlined path toward construction.
To support its next phase of growth without issuing more shares, Lake Victoria Gold signed a non-binding gold prepay term sheet in late 2024 with Monetary Metals. The arrangement provides upfront capital now, in exchange for delivering a portion of future gold production at a modest discount. This non-dilutive structure aligns repayment with LVG's production timeline and outlines access to the value of up to 7,000 ounces of gold—helping fund construction and development at the Imwelo Project.
More recently, in February 2025, the company completed the initial tranche of a strategic, three-stage investment agreement with Taifa Group, raising
LVG also retains exposure to long-term upside through its 2021 agreement with Barrick, which outlines up to
With multiple growth levers in motion—from exploration and joint ventures to funding agreements and project advancement—Lake Victoria Gold continues to build momentum in one of
CONTINUED… Read this and more news for Lake Victoria Gold at:
https://equity-insider.com/2025/04/14/with-funding-commitments-in-place-a-gold-mine-is-being-built-and-this-stock-is-still-under-0-20/
In other industry developments and happenings in the market include:
Galiano Gold Inc. (NYSE-American: GAU) (TSX: GAU) has uncovered a new high-grade zone at its Abore deposit, with drill results showing 50 metres at 3.15 g/t gold beneath the current pit design. Additional intercepts at Abore South confirmed strong grades and continuity, including 34m at 12.0 g/t and 27m at 6.7 g/t.
"The identification of a new high-grade zone beneath Abore Main and the extensions that have grown the Abore South high-grade zone from 90 meters to 180 meters long, underscore the substantial growth potential at Abore," said Chris Pettman, Galiano's Vice President of Exploration. "Mineralization remains open at depth throughout the entire 1,600m strike length, with these latest findings suggesting the Abore mineralizing system may be considerably more extensive than previously understood."
These results not only strengthen confidence in the current reserve model, but also point to the potential for future underground development. Galiano says establishing its first underground resource is a top priority in 2025.
Centerra Gold Inc. (NYSE: CGAU) (TSX: CG) recently updated the mineral resource at its Kemess project in
"The updated mineral resource published today demonstrates robust mineralization in the highly prospective Toodoggone district in the northern interior of
At the end of March, Omai Gold Mines Corp. (TSXV: OMG) (OTCQB: OMGGF) reported multiple high-grade intercepts from its Wenot deposit in
"These new Wenot results provide strong additions to our 2025 drill program focused on resource expansion," said Elaine Ellingham, President and CEO of Omai. "We believe the potential for value creation through the drill bit continues to be strong."
These latest results extend mineralization well below the 2024 resource and PEA pit shell. The company has expanded its 2025 drill program from 10,000m to at least 15,000m and is fully funded with
i-80 Gold Corp. (NYSE-American: IAUX) (TSX: IAU) recently delivered a
"At Granite Creek Underground, i-80 Gold's first gold project to ramp up, we are making good progress in our dewatering efforts, addressing groundwater inflows by enhancing our pumping capacity and upgrading the water treatment infrastructure," said Richard Young, President and CEO of i-80. "These improvements should allow us to ramp-up to steady state of gold output in the second half of 2025."
Development at Granite Creek advanced with improved dewatering infrastructure, while permitting progressed at Archimedes (Ruby Hill) and Cove. The company finalized PEAs for all five core projects, which collectively carry an after-tax NPV of
Article Source: https://equity-insider.com/2025/04/14/with-funding-commitments-in-place-a-gold-mine-is-being-built-and-this-stock-is-still-under-0-20/
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FAQ
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