Gold Margins Hit 50-Year High as Investors Eye Undervalued Miners

Issued on behalf of Lake Victoria Gold Ltd.

VANCOUVER – Baystreet.ca News Commentary – With gold prices possibly never having been higher, Citi analysts are highlighting that gold-mining margins are now at a 50-year high. However, gold producers haven’t responded by cashing in with any additional hedging (ie. selling future production at a fixed price to support financing for new mines). With the next Federal Reserve meeting coming June 17, gold’s near-term future price could either stabilize, rise, or drop, depending on how the meeting plays out. Citi has gone on to adjust its short-term gold forecast to $3,500. With the added attention the precious metal is getting among a safe-haven environment, gold stocks have been making moves recently, including Lake Victoria Gold (TSXV:LVG.VN) (OTC-BB:LVGLF), Emerita Resources Corp. (TSXV:EMO.VN) (OTC-BB:EMOTF), Fortuna Mining Corp. (NYSE:FSM) (TSX:FVI.TO), Franco-Nevada Corporation (NYSE:FNV) (TSX:FNV.TO), and IAMGOLD Corporation (NYSE:IAG) (TSX:IMG.TO).

The article continued: With the TSX riding its longest winning streak since 2021—driven largely by strength in mining shares—investors are beginning to rotate toward under-the-radar small- and mid-cap gold names. At the same time, analysts at Jefferies highlight a historic valuation disconnect, noting that many gold stocks continue to trade as if bullion were capped at just $2,500 an ounce.

Lake Victoria Gold Plans Close-Spaced Drilling Program at Ngula 1 to Define Shallow Resource Potential

Lake Victoria Gold (TSXV:LVG.VN) (OTC-BB:LVGLF) today announced it will undertake a 3,000-meter reverse circulation (RC) drilling program within a newly granted mining license at its Ngula 1 prospect. The initiative aims to define a shallow gold resource that could potentially supply ore to a third-party processing facility located just 3.5 kilometers from the site. Ngula 1 has already returned numerous promising gold intersections in two prior drilling campaigns, setting the stage for what could be a near-term production opportunity.

“This drilling campaign is part of our broader strategy to unlock the long-term value at Tembo,” said Simon Benstead, Executive Director of Lake Victoria Gold. “While the near-surface potential at Ngula 1 presents an exciting opportunity for near-term production and cash flow, it also serves a larger purpose—supporting a non-dilutive path toward what we believe is a district-scale gold system. We’re leveraging strategic infrastructure and partnerships to advance exploration while staying disciplined on capital allocation.”

Ngula 1 sits on a structurally complex belt of deformed basaltic rocks that spans approximately 800 meters in strike and 100 to 150 meters in width. This geological setting hosts several sub-parallel gold-bearing shear zones, believed to represent the limbs of a tight isoclinal fold structure—an ideal environment for concentrated mineralization.

“Ngula 1 continues to demonstrate strong geological continuity and consistent high-grade mineralization over multiple campaigns,” said David Scott, Pr. Sci. Nat., Managing Director Tanzania and Director of Lake Victoria Gold. “The structural complexity, folding patterns, and repeated shear-hosted zones are exactly the kind of setting we associate with significant gold systems in the Lake Victoria Goldfield.”

The current program will target a 300-meter section of the southern structural zone, where previous reverse circulation and diamond drilling returned several notable high-grade intercepts. Past results include 3.13 g/t gold over nearly 26 meters from 41 meters depth, including 9.38 g/t over 6.3 meters; 17.23 g/t over 4 meters from 19 meters; and 28.57 g/t over 3 meters encountered from 54 meters. These shallow, high-impact intervals underscore the near-term potential of the target area.

“This close-spaced RC program will give us the data density needed to move from exploration success toward a defined resource, and potentially, production,” added Scott.

The drill plan includes 45 holes spaced 20 meters apart, with alternating rows offset by 10 meters to provide higher subsurface resolution. Hole depths will range from 10 to 50 meters below surface, and each will extend at least 25 meters beyond the first structural intersection to fully characterize the mineralized zone.

Following the drilling phase, composite samples will be blended and submitted for gold deportment and metallurgical testing, including leach diagnostics and gravity recovery evaluations. A proposal for this test work is already in motion, and early discussions with drilling contractors are underway.

While Ngula 1 is being advanced for its standalone near-surface value, the broader Tembo project remains Lake Victoria Gold’s core long-term focus. The property lies directly adjacent to Barrick’s Bulyanhulu Mine and shares many of the same geological traits. To date, over 50,000 meters of drilling have tested less than 15% of the known structural targets across Tembo’s 32 km² footprint.

The company views the upcoming drilling at Ngula 1 not just as a path to potential production, but as part of a disciplined, non-dilutive strategy to unlock what could become a district-scale gold discovery.

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:

Emerita Resources Corp. (TSXV:EMO.VN) (OTC-BB:EMOTF) recently announced that gold recoveries at its IBW Project have climbed to 81.5% following a new round of post-flotation metallurgical testing using the CLEVR Process™, marking a 27% improvement over earlier results.

“The Company’s continuing investigation into the post-flotation process optimization has shown a dramatic improvement in gold recovery for the IBW Project,” said Joaquin Merino, President of Emerita Resources. “If we were to calculate the impact these results on recovered metals, compared to the initial results (MRE), it would translate into an additional recovery of 159,000 ounces of gold.”

This non-cyanide, environmentally optimized approach was developed with DUNDEE Sustainable Technologies and shows notable reductions in both sulfides and arsenic content. The improvements apply primarily to the La Romanera deposit but have also been extrapolated to the nearby El Cura zone based on similar metallurgical behavior.

Fortuna Mining Corp. (NYSE:FSM) (TSX:FVI.TO) recently reported high-grade drill results from the Southern Arc prospect at its Diamba Sud Gold Project in Senegal. The 4,210-meter program is part of a broader effort to refine geological models and expand mineralized zones.

“Our exploration work at Diamba Sud continues to yield strong results, particularly from areas with limited historical drilling,” said Paul Weedon, Senior Vice President of Exploration for Fortuna Mining Corp. “Notably, recent drilling at the Southern Arc prospect has delivered some of our most compelling intercepts to date—highlighted by 8.6 g/t gold over an estimated true width of 13.6 meters in hole DSR906, and 9.3 g/t gold over 11.8 meters in hole DSDD404.”

Additional drilling at Area D returned 113.7 g/t gold over 6.4 meters, further highlighting the project's exploration upside.

Franco-Nevada Corporation (NYSE:FNV) (TSX:FNV.TO) has acquired a 7.5% gross margin royalty on the Côté Gold Mine from a private third party for $1.05 billion, with full due diligence access granted through a strategic partnership with IAMGOLD Corporation (NYSE:IAG) (TSX:IMG.TO) and Sumitomo.

“We appreciate the opportunity to partner with IAMGOLD and Sumitomo and the due diligence access they provided to us,” said Paul Brink, President & CEO of Franco-Nevada. “Their team has developed an excellent new operation with an extensive Resource endowment that has high potential to continue expanding.”

The royalty covers more than 99.9% of the current Mineral Resource base, which includes over 16 million ounces of measured and indicated gold and 4 million ounces inferred, across the Côté and Gosselin zones.

“We are pleased to welcome our new partner Franco-Nevada to the Côté Gold Mine as we continue to ramp up one of Canada's largest and longest-life gold mines,” Renaud Adams, President & CEO of IAMGOLD. “The Côté Gold Mine is just at the beginning of its operating life with excellent opportunities being evaluated to further grow the Resource base, improve mining productivity, and optimize and expand mill throughput beyond the initial ramp up."

Côté Gold is one of Canada’s newest large-scale operations, with commercial production beginning in August 2024 and ramp-up continuing through 2025. IAMGOLD and Sumitomo will retain the option to buy back up to 50% of the royalty in two tranches, structured around defined IRR thresholds.

Franco-Nevada believes mill throughput could eventually be expanded from 13 Mtpa to as much as 20 Mtpa. Both companies see further upside tied to the Gosselin zone, which is expected to be incorporated into a new mine plan in 2026.

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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