As Majors Hit Their Stride, Contrarian Capital Eyes Gold's Next Wave

USA News Group News Commentary
Issued on behalf of Lake Victoria Gold Ltd.

VANCOUVER, BC, May 22, 2025 /CNW/ -- USA News Group News Commentary – While institutional headlines have focused on record-setting quarters from the world's biggest gold producers, a quieter opportunity may be forming in their wake. Capital is beginning to rotate down the value chain, with seasoned investors eyeing select juniors and mid-tiers that haven't yet priced in $3,300 gold—or the possibility of $3,500, as Goldman Sachs now forecasts. With the TSX nearing all-time highs and central banks continuing to build gold reserves, the stage may be set for a catch-up trade in developers and emerging producers. Among the gold stocks seeing renewed interest are Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF), McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), Majestic Gold Corp. (TSXV: MJS) (OTCPK: MJGCF), and Orezone Gold Corporation (TSX: ORE) (OTCQX: ORZCF).

Jefferies recently noted that many gold equities are still trading at valuations more in line with $2,500 gold, even as fundamentals improve and development timelines shorten. For investors willing to look beyond the majors, this disconnect could represent one of the more asymmetric setups in the sector today.

Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF) is building momentum in Tanzania by exploring a low-capex pathway to near-term development. The company recently engaged Nesch Mintech Tanzania—an independent, highly regarded metallurgical and process engineering firm—to evaluate a local processing plant that could accelerate gold recovery while minimizing upfront spend. This follows a non-binding LOI with Nyati Resources, signaling early alignment on a phased development model. Nesch's review will determine the plant's readiness, potential gold recovery rates, and what targeted improvements could optimize output.

"Engaging Nesch Mintech at this stage ensures we bring third-party rigour and transparency to the commissioning process, which is fundamental to assessing the Nyati opportunity," said Marc Cernovitch, President and CEO of Lake Victoria Gold. "We are excited by the potential to leverage existing processing infrastructure and local ore sources to create a scalable gold production platform in Tanzania."

Should the partnership proceed, Lake Victoria Gold would start trucking mineralized material from its 100%-owned Mining Licences to Nyati's existing 120-ton-per-day plant, with potential to expand into a new 500-ton-per-day facility nearing completion. Combined, the two sites offer the foundation for a centralized processing hub—creating a streamlined, low-CAPEX development model with room to scale. For LVG, it represents a faster potential path to revenue with limited capital exposure.

"This audit is an important milestone as we advance this most compelling near-term gold development opportunity," said Simon Benstead, Executive Director of Lake Victoria Gold. "By combining strategic processing infrastructure with high-potential development targets, the proposed joint venture has the potential to unlock meaningful value for all stakeholders. We look forward to working closely with Nesch Mintech to validate the plant's performance and move confidently toward execution."

While still early in its development cycle and not yet supported by a formal resource estimate or Feasibility Study, the proposed initiative offers LVG a rare chance to validate its geology through live processing of mineralized materials. As with any small-scale operation, risks around grade variability, metallurgy, permitting, and financing remain. But if the plan works, it could fast-track initial cash flow and create a self-funded path for continued exploration. The Nyati agreement also builds on LVG's earlier move to evaluate small-scale development scenarios at its Tembo Project—located immediately adjacent to Barrick's high-grade Bulyanhulu mine.

Tembo has already seen more than US$28 million in historical exploration, with over 50,000 metres of drilling defining multiple high-potential zones. Key targets like Ngula 1, Nyakagwe Village, and Nyakagwe East remain open along strike and at depth—pointing to meaningful long-term upside as the district continues to attract attention.

"Tembo has always stood out as a project with the potential to deliver both near-term value and long-term discovery upside," said Benstead. "Evaluating this small-scale development opportunity allows us to test the system, generate operational insights, and potentially self-fund ongoing exploration."

Lake Victoria Gold is steadily aligning capital, partnerships, and permitting to bring its Tanzanian portfolio into focus. While the high-potential Tembo Project remains the company's long-term exploration driver, its fully permitted Imwelo Project is currently in the lead as the most construction-ready asset. Backed by a 2021 Pre-Feasibility Study and located near AngloGold Ashanti's Geita Mine, Imwelo offers a clear path toward near-term development.

To help move things forward, LVG signed a non-binding gold prepay term sheet with Monetary Metals in late 2024. The agreement provides upfront, non-dilutive capital in exchange for a portion of future production—tying repayment directly to output and reducing balance sheet risk. The structure supports access to value equivalent to up to 7,000 ounces of gold, with funds designated for early development and construction activity.

Additional backing came in early 2025 through a C$3.52 million investment from Taifa Group, part of a larger C$11.52 million multi-stage financing. Alongside the capital, LVG welcomed former Taifa CEO Richard Reynolds to its board—bringing seasoned regional insight and operational depth.

Looking ahead, the company also maintains a milestone-based earn-in agreement with Barrick worth up to US$45 million, contingent on future exploration success at Tembo. With plant evaluations underway, a potential joint venture on the table, and multiple funding mechanisms in play, Lake Victoria Gold is shaping up as a serious contender among East Africa's next wave of junior gold developers.

CONTINUED… Read this and more news for Lake Victoria Gold at:  https://usanewsgroup.com/2025/04/02/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:

GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) generated $17.6 million in revenue in Q2 2025 from 555,511 silver equivalent ounces sold at Parral, producing $5.1 million in operating cash flow and increasing its cash position to $78.3 million. The average realized silver price was $31.70 per ounce, with a cash cost of $17.85 and AISC of $22.98 per ounce—supporting healthy project-level margins.

"Parral continued to generate significant cash flow for the Company during the quarter, providing operating cash flow of $5 million which is exceeding our spending at Los Ricos and corporate costs, and increased our cash balance by $2 million at quarter end," said Brad Langille, President and CEO of GoGold Resources Inc. "With our bought deal financing completed in April, this gives us an approximately $135 million cash balance today putting us in a very strong financial position to execute on Los Ricos South."

McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) produced 24,131 GEOs in Q1 2025 and reaffirmed full-year guidance of 120,000 to 140,000 GEOs, with stronger output expected in the second half. Production at Gold Bar and San José was in line with seasonal expectations, while operations at Fox were impacted by labor and weather-related challenges. With $68.5 million in cash and $61.1 million in working capital at quarter-end, the company remains well-capitalized following a recent $110 million convertible note issuance.

A major turning point will come in July with the release of the Los Azules feasibility study, which will shift McEwen Copper's impact from expense to capital asset on the balance sheet.

Back in March, Majestic Gold Corp. (TSXV: MJS) (OTCPK: MJGCF) reported strong full-year 2024 results, generating $71 million in revenue and $20.5 million in net income—up 68% from 2023. The company produced nearly 32,000 ounces of gold and ended the year with $100.7 million in cash, while paying out a dividend yielding over 10%.

"As we move into 2025, we expect an increase in gold production at the SJG Mine beginning in Q3 2025 and continuing into FY2026, driven by the completion of the SJG open-pit expansion project," said Stephen Kenwood, CEO of Majestic Gold. "With the recent acquisition of a 52% interest in the Mujin Gold Project, we will also begin consolidating Mujin's operations into the Company as of March 1, 2025."

With the SJG expansion expected to complete in Q2 2025 and a new 52% stake in the Mujin Gold Project, Majestic is positioning for meaningful growth.

Orezone Gold Corporation (TSX: ORE) (OTCQX: ORZCF) produced 28,688 ounces of gold in Q1 2025, generating $82.7 million in revenue and $44.2 million in adjusted EBITDA.

"The first quarter of 2025 marked another consecutive quarter of positive net earnings and free cash flow, driven by our unhedged exposure to rising gold prices," said Patrick Downey, President and CEO of Orezone Gold. "Production and costs were in line with expectations with annual guidance being maintained."

With $102 million in cash and construction of its hard rock expansion now 45% complete, the company remains on track for a production boost later this year. Backed by strong cash flow and a well-received financing, Orezone is also evaluating a potential fast-track of Phase II's Stage 2.

Article Source: https://usanewsgroup.com/2025/04/02/with-funding-commitments-in-place-a-gold-mine-is-being-built-and-this-stock-is-still-under-0-20/ 

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