VANCOUVER, BC, June 5, 2025 /CNW/ -- Equity InsiderNews Commentary – Goldman Sachs analysts say central banks are driving the current gold bull market by purchasing roughly 80 metric tons per month — the equivalent of $8.5 billion at today's prices. With ongoing geopolitical instability and economic uncertainty, analysts like George Milling-Stanley of State Street Global Advisors argue that gold remains a compelling hedge. As bullion pushes toward new highs, momentum is starting to shift toward mining equities as well. A growing number of investors are now eyeing gold stocks like Lake Victoria Gold(TSXV: LVG) (OTCQB: LVGLF), i-80 Gold Corp. (NYSE-American: IAUX) (TSX: IAU), Orezone Gold Corporation (TSX: ORE) (OTCQX: ORZCF), Franco-Nevada Corporation (TSX: FNV) (NYSE: FNV), and IAMGOLD Corporation (NYSE: IAG) (TSX: IMG).
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Despite the price surge in physical gold, Jefferies analysts note that many miners are still trading at historically low valuations — as if gold were stuck at $2,500 an ounce or lower. That disconnect, they say, may not last much longer.
Lake Victoria Gold(TSXV: LVG) (OTCQB: LVGLF) is an emerging gold developer advancing a suite of development -stage assets in Tanzania, one of East Africa's most geologically prospective regions. With multiple project catalysts now in motion, the company is gaining attention as a junior to watch. A key near-term focus is its planned 3,000-meter reverse circulation (RC) drill program at Ngula 1, part of the larger Tembo Project located adjacent to Barrick's high-grade Bulyanhulu mine.
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Ngula 1 has already returned notable historical intercepts, including 28.57 g/t gold over 3 meters and 17.23 g/t over 4 meters. The current 45-hole campaign is targeting near-surface mineralization that could potentially support toll milling at a nearby third-party facility. If the program meets expectations, it may pave the way for a streamlined, low-capex production pathway leveraging local infrastructure.
"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."
In parallel with its drilling efforts, Lake Victoria Gold is advancing a proposed processing arrangement through a non-binding letter of intent (LOI) with Nyati Resources. Under the current framework, mineralized material from LVG's Mining Licences would be trucked to Nyati's 120-tonne-per-day processing plant, with an option to scale operations into a new 500-tpd facility which is expected to be commissioned in the coming months. To support the initiative, Nesch MintechTanzania has been brought in to assess the plant's readiness, evaluate metallurgical performance, and outline any necessary upgrades to support production goals.
"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."
If proven viable, the proposed partnership could help advance Lake Victoria Gold's strategy of building a lean, capital-efficient gold operation. On-site processing may unlock early cash flow while also yielding critical geological data to refine future exploration. Though factors such as metallurgy, grade consistency, and permitting will need to be closely managed and always present risks, the phased structure provides a flexible alternative to conventional, high-cost development models.
"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."
Both the Ngula 1 drill campaign and the proposed Nyati processing partnership are part of Lake Victoria Gold's broader Tembo Project — a high-potential gold district that has already seen over US$28 million in exploration spending and more than 50,000 meters of drilling. Key zones like Nyakagwe Village and Nyakagwe East remain open along strike and at depth, with only a small portion of mapped structures drilled to date. This leaves considerable room for further discovery.
Tembo is also anchored by a tier-one relationship: a milestone-driven contingent payment agreement with Barrick Mining Corp., valued at up to US$45 million depending on exploration outcomes. The deal reflects shared confidence that Tembo may host a district-scale gold system with long-term development potential.
While Tembo remains the flagship, the most advanced asset in LVG's portfolio is Imwelo — a fully permitted gold project located near AngloGold Ashanti's Geita Mine. Imwelo is supported by a 2021 Pre-Feasibility Study and stands out as a strong candidate for phased development.
To help fund its advancing strategy, Lake Victoria Gold has secured multiple non-dilutive financing channels. A gold prepay agreement with Monetary Metals allows the company to draw on the cash value of up to 7,000 ounces tied to future production. Separately, a C$3.52 million investment from Taifa Group — part of a larger C$11.52 million multi-stage financing — has further strengthened the company's balance sheet. As part of that transaction, former Taifa CEO Richard Reynolds joined the board, bringing valuable in-country operating experience.
With drill rigs soon turning at Ngula 1, plant evaluations underway, and capital sources secured, Lake Victoria Gold is steadily positioning itself for a transition into production. Its development strategy is incremental by design — focused on limiting upfront capital exposure, unlocking early-stage returns, and using those gains to accelerate exploration.
In an industry often dominated by high-cost development paths, LVG is charting a different course — one that offers potential for lower-risk, modular growth in a proven gold district.
In other industry developments and happenings in the market include:
i-80 Gold Corp. (NYSE-American: IAUX) (TSX: IAU) has closed its previously announced US$11.1 million concurrent private placement, issuing 22.24 million units priced at US$0.50 each. This follows a US$173 million bought deal financing that closed earlier in May, bringing total gross proceeds to approximately US$184 million. The capital will be used to support the company's Nevada-focused development plan and broader recapitalization strategy.
"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," stated Richard Young, President and CEO of i-80 Gold. "These improvements should allow us to ramp-up to steady state of gold output in the second half of 2025."
Orezone Gold Corporation (TSX: ORE) (OTCQX: ORZCF) produced 33,252 ounces of gold during Q1 2025 at an AISC of $1,286 per ounce and sold 32,076 ounces at $2,068 per ounce, generating $19.2 million in operating cash flow.
"We are pleased with the strong start to 2025 with solid production and cost performance in Q1," said Patrick Downey, President and CEO of Orezone Gold. "We remain on track to deliver our 2025 production and cost guidance while progressing key initiatives including the grid power connection and Bomboré expansion drilling."
Orezone maintained its full-year production guidance and expects major cost reductions once the Phase III grid connection is completed in Q3. Meanwhile, expansion drilling at Bomboré delivered promising near-mine results to support future growth.
Franco-Nevada Corporation (TSX: FNV) (NYSE: FNV) has acquired a cornerstone royalty on the Côté Gold Mine, operated by IAMGOLD Corporation (NYSE: IAG) (TSX: IMG) and Sumitomo, for $1.05 billion in cash.
"We are pleased to add this new cornerstone gold royalty to our extensive portfolio in Ontario," 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 7.5% gross margin royalty covers nearly the entire resource base and is expected to generate $67 million annually at IAMGOLD's midpoint production guidance and a $3,200 gold price. Franco-Nevada praised the modern design and expansion potential of the Côté operation, which includes autonomous equipment and potential mill capacity growth to 20 Mtpa.
"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," said Renaud Adams, President and CEO of IAMGOLD. "The value upside of the Côté Gold Mine is further supported by the rapidly growing Gosselin zone which we intend to incorporate into an updated mine plan next year."
As part of the deal, IAMGOLD and Sumitomo may repurchase up to 50% of the royalty in two tranches. Franco-Nevada will fund the transaction with existing capital and continues to generate $275–$300 million in quarterly free cash flow.
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