Lake Victoria Gold Ltd has released its initial NI 43-101 Mineral Resource Estimate for the Tembo Gold Project in northwestern Tanzania. The report identifies a significant gold resource located next to Barrick's Bulyanhulu mine, transitioning the project from a series of drill intercepts to a verified mineral asset .
The 579,800-ounce potential of the Tembo Gold Project
According to the NI 43-101 Mineral Resource Estimate (MRE), the Tembo Gold Project contains an Inferred Mineral Resource of 13.33 million tonnes and an Indicated resource of 2.69 million tonnes. At an average grade of 1.12 and 1.16 grams per tonne respectively, these figures translate to approximately 480,100 inferred ounces and 99,700 indicated ounces of gold. These calculations, prepared by Obsidian Consulting Services, utilize a 0.25 gram per tonne cut-off within conceptual open-pit and underground shells.
The resource exhibits a robust higher-grade core, which is a critical indicator for mining viability. As Lake Victoria Gold reported, raising the cut-off to 1.00 gram per tonne narrows the inferred resource to 4.79 million tonnes but increases the average grade to 2.15 grams per tonne. This grade escalation suggests that the deposit is not merely a broad, low-grade envelope but contains concentrated pockets of high-value mineralization.
Nyati Resources' 500-tonne-per-day plant as a production shortcut
To accelerate the timeline to revenue, Lake Victoria Gold is evaluating a toll-milling arrangement with Nyati Resources. Nyati Resources operates a processing plant with a capacity of 500 tonnes per day located immediately adjacent to the Tembo licence. This strategy would allow Lake Victoria Gold to process ore without the massive capital expenditure required to build its own mill, provided that permitting and financing are secured.
The immediate operational focus is centered on the Ngula 1 target area, which accounts for 63 percent of the indicated ounces and more than half of the inferred ounces.. To refine the mine planning models, Lake Victoria Gold plans to execute a close-spaced drilling program covering 4,000 to 5,000 metres on a 20-by-20 meter grid. This targeted approach aims to convert inferred resources into indicated or measured categories before full-scale production begins.
Proximity to Barrick's Bulyanhulu mine and the undrilled Buly Trend
The Tembo Gold Project is strategically positioned in northwestern Tanzania,sharing a boundary with Barrick's Bulyanhulu mine, one of the region's most significant gold operations. This proximity provides strong geological validation for the area's potential. Beyond the current MRE, the project includes the Buly Trend and Iyenze targets, which lie directly against the Bulyanhulu boundary and have not yet been drilled.
This geographic alignment places Lake Victoria Gold within a proven gold-bearing corridor. The use of multiple-indicator kriging in the MRE was specifically intended to separate bunchhed high-grade gold from background mineralization, ensuring that the reported grades reflect the actual geology of the Tanzanian terrain rather than a statistical anomaly.
Why only three of GoldSpot Discoveries' 39 targets made the MRE
A significant point of scrutiny remains regarding the project's historical exploration data. In 2020, GoldSpot Discoveries reported a list of 39 exploration targets for the site, yet only three of those targets are represented in the current NI 43-101 estimate. This discrepancy leaves a wide gap between the early conceptual targets and the currently verified mineral resources.
It remains unclear whether the remaining 36 targets were dismissed due to poor drill results, a lack of funding , or a strategic shift in focus toward Ngula 1. While the current MRE solidifies the project as a viable asset, the industry will be watching to see if Lake Victoria Gold intends to revisit those legacy targets or if they have been permanently downgraded.
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