Gold's Return to $3,400 Spurs Sector Gains Amid $4,000 Forecasts

Equity Insider News Commentary

Issued on behalf of Lake Victoria Gold Ltd.

VANCOUVER, BC, May 7, 2025 /CNW/ -- Equity Insider News Commentary – After surpassing $3,500 at the tail end of April, multiple institutions revised their forecasts for gold prices upward, with Deutsche Bank predicting $3,700-per-ounce gold as early as next year. Billionaire hedge fund manager John Paulson went further, predicting near-$5,000 gold by 2028. Following a short sluggish performance period, the gold price returned to $3,300, leading to gold mining stocks collectively strengthening again. On the ground, several gold miners are putting out solid news, with recent developments coming from Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), Galiano Gold Inc. (NYSE-American: GAU) (TSX: GAU), Centerra Gold Inc. (NYSE: CGAU) (TSX: CG), Omai Gold Mines Corp. (TSXV: OMG) (OTCQB: OMGGF), and i-80 Gold Corp. (NYSE-American: IAUX) (TSX: IAU).

After the world's biggest gold-buying market (China) returned from a holiday break, the price of gold has rallied, and fuelling gold miner stocks with it.  As analysts see $4,000 gold in the near future, including JP Morgan projecting this as early as Q2 2026, Ed Yardeni at Yardeni Research is calling for this level by the end of the year. Canadian mining industry veteran Rob McEwen joins Paulson in believing gold will surge to $5,000 an ounce in the next 2-3 years, and fuelling a gold mining stocks boom along the way.

Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), a junior gold developer focused on East Africa, has just taken a meaningful step toward a potential near-term production opportunity. The company recently signed a non-binding Letter of Intent with Nyati Resources to evaluate a potential small-scale development partnership at its Tembo Project in Tanzania.

"We are excited by the potential to leverage existing processing infrastructure and local ore sources to create a scalable gold production platform in Tanzania," said Marc Cernovitch, President and CEO of Lake Victoria Gold. "This proposed partnership aligns with our strategy of unlocking near-term value while continuing to advance our core exploration assets."

The partnership under evaluation would bring together mineralized material from LVG's 100%-owned Mining Licences with Nyati's existing 120 tpd processing plant, plus a second 500 tpd facility now under construction. The plan envisions a dedicated operating company structured to meet the Tanzanian Government's 16% free carried interest framework. Both parties have entered a 60-day exclusivity window to complete due diligence and finalize terms.

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 Tanzania."

Bordering the prolific Bulyanhulu Mine operated by Barrick, the Tembo Project has benefited from over US$28 million in historical exploration, including more than 50,000 meters of drilling. Targets like Ngula 1, Nyakagwe Village, and Nyakagwe East remain open along strike and at depth, continuing to demonstrate strong geological potential.

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 C$3.52 million at C$0.22 per share. As part of the evolving partnership, Taifa's former CEO, Richard Reynolds, has joined the board of LVG.

LVG also retains exposure to long-term upside through its 2021 agreement with Barrick, which outlines up to US$45 million in potential milestone-based payments. Backed by development momentum at Imwelo, near-term optionality at Tembo, and strategic partnerships, the company is steadily positioning itself as a noteworthy player among East Africa's emerging gold developers.

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 Africa's most prospective gold regions.

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 British Columbia, now holding 2.7 million ounces of indicated gold and 971 million pounds of indicated copper. The 2024 drilling campaign has improved geological confidence and supported a shift to a longhole open stoping plan, replacing the previous block cave model. With existing infrastructure already in place, including a 50,000 tpd plant and 380km power line, Kemess could see reduced execution risk compared to greenfield projects.

"The updated mineral resource published today demonstrates robust mineralization in the highly prospective Toodoggone district in the northern interior of British Columbia," said Paul Tomory, President and CEO of Centerra Gold. "We are moving forward with a Preliminary Economic Assessment on Kemess, using an open pit and longhole open stoping underground mining concept, which is expected to be completed by the end of 2025."

At the end of March, Omai Gold Mines Corp. (TSXV: OMG) (OTCQB: OMGGF) reported multiple high-grade intercepts from its Wenot deposit in Guyana, including 10.40 g/t gold over 10.5m (capped), 2.13 g/t over 48.5m, and 3.83 g/t over 18.8m in hole 25ODD-101.

"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 C$30 million in the treasury.

i-80 Gold Corp. (NYSE-American: IAUX) (TSX: IAU) recently delivered a 67% year-over-year revenue increase in Q1 2025, selling nearly 5,000 ounces of gold at a record average price of $2,825/oz.

"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 $1.6 billion at $2,175 gold.

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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