News Summary
The latest news (December 18–22, 2025) reports high-grade gold grab samples from artisanal sites at the Tembo Project in Tanzania, with results reaching 35.45 g/t Au. These results are being used to define priority drill targets for a 3,000m program scheduled for Q1 2026. Simultaneously, the company is advancing a non-binding Letter of Intent (LOI) with Nyati Resources for the use of a 500 tonne-per-day (tpd) Carbon-In-Pulp (CIP) plant located on one of LVG’s licenses. This follows mid-December drill results from the Imwelo Project that confirmed mineralization extends beyond the current pit design to depths exceeding 250 meters, with intercepts such as 9.31 g/t Au over 2.45m.
Material Impact
The news reflects a strategic shift from pure exploration to a “dual-track” execution model.
– Tembo Project: The surface high-grade samples (up to 35.45 g/t) are encouraging but selective; their primary value is in de-risking the upcoming Q1 2026 drill program rather than defining a resource.
– Production Pathway: The partnership with Nyati Resources is the most material development. By utilizing existing third-party infrastructure (the 500 tpd plant), LVG is attempting a low-capex entry into production. However, as the news notes, there is no Feasibility Study (FS) in place, which significantly increases the technical and economic risk of this production decision.
– Resource Expansion: Confirming that Imwelo remains open at 250m depth suggests the project has more scale than previously modeled, potentially supporting an underground phase in the future.
Catalysts
– Binding Agreement with Nyati: Transitioning the LOI into a binding toll-processing or joint venture agreement is critical for the “near-term production” narrative.
– Q1 2026 Drilling at Tembo: Results from the 3,000m program at Ngula 1 will determine if the artisanal high-grades translate into a coherent, mineable resource.
– Tanzanian Government Finalization: Execution of the final binding framework agreement for the 16% free-carried interest joint venture (JVCo).
– Assay Flow: Remaining results from the 16 completed holes (out of 24 planned) at Imwelo Area C.
Materiality Conclusion
The news is material in that it provides a tangible timeline for production and proves mineral continuity at depth. However, it is categorized as Routine – Positive because the processing LOI was previously disclosed in earlier 2025 updates, and the grab samples, while high-grade, are preliminary and non-representative of a bulk mineral resource.
