Lake Victoria Gold Reports Geotechnical Results Supporting Final Pit Design and Advancing Development at Imwelo

Lake Victoria Gold Ltd. has completed a geotechnical review and testing program at its Imwelo Gold Project in Tanzania, providing critical data for final pit design and mine planning. The results confirm strong to very strong rock conditions at depth (basalt and granite), supporting steeper slope configurations in fresh rock. A shallow oxidized saprock zone (0–60 m) was identified, requiring more conservative slope angles but offering "free-digging" characteristics that reduce mining costs. The company is integrating these results into final pit optimization, mine scheduling for Area C, detailed slope stability analysis, and infrastructure planning. This follows the commencement of site sterilization drilling on May 6, 2026, aimed at de-risking infrastructure placement ahead of construction.

The geotechnical update is a positive operational milestone but falls within the expected development trajectory established by previous announcements. The company secured significant financing in April 2026 ($25 million gold loan and $3.8 million convertible debenture), which was rated as "Material - Positive" due to its non-dilutive nature and funding certainty for construction. This May 7 release confirms that the engineering phase is progressing without technical roadblocks, validating the use of proceeds from the April financing. It does not introduce new financial upside or unexpected discoveries but rather de-risks the execution timeline by confirming slope stability and cost-saving opportunities (free-digging oxide). Given the steady stream of positive operational updates since late 2025 (drilling results, metallurgy, permitting), this news is incremental confirmation rather than a market-moving surprise. It supports the narrative of moving toward production but does not alter the fundamental valuation drivers established by the financing round.

Lake Victoria Gold Ltd. operates two primary assets in Tanzania: Imwelo and Tembo. The Imwelo Gold Project is the flagship development asset, fully permitted with a 10-year mining licence (ML538/2015). It is located approximately 12 km from AngloGold Ashanti’s Geita Mine. The project targets an initial production of 12,000 oz Au per annum, ramping to 24,000 oz by Year 3, with an estimated AISC of ~$1,500/oz. Metallurgical testing confirms high recoveries (up to 97%) and free-milling characteristics. The Tembo Project is in the exploration phase but has a strategic pathway involving toll milling via Nyati Resources to generate early cash flow while Barrick Gold explores adjacent licenses under an Asset Purchase Agreement.