By Business Insider Reporter
Lake Victoria Gold Ltd. (LVG) has cleared a key regulatory hurdle after securing approval from the National Environment Management Council (NEMC) for its updated Environmental and Social Management Plan (ESMP) at the Imwelo Gold Project in the Geita Region.
The company statement noted that the approval reaffirms the project’s compliance with environmental and social standards and positions the company to advance under its existing 10-year mining license, renewed in November 2024. The company is targeting first gold production within 12 months of construction, supported by a streamlined mine plan and strategic partnerships.
Strategic location
Imwelo is located just 12 kilometres from AngloGold Ashanti’s Geita Gold Mine, one of Africa’s most successful gold producers.
The proximity offers clear infrastructure advantages, including access to roads, power, and skilled labour.
The project is fully permitted under Mining Licence ML538/2015 and has the potential to become one of Tanzania’s next producing gold mines.
According to the company, the first phase of development will focus on Area C, which averages 3.7 g/t Au, making it one of the project’s highest-grade zones.
Historical intercepts have been encouraging, with encouraging results.
Measured and Indicated resources total nearly 138,000 ounces, with a further 153,900 ounces inferred, though the company acknowledges these estimates require further work to be compliant with Canadian NI 43-101 reporting standards.
A new 7,750-metre drilling programme is set to begin shortly, aimed at converting resources, refining pit design, and exploring depth potential.
Drilling to date has only tested an average of 50 metres below surface, leaving significant scope for expansion.
Strengthening the social licence
The updated ESMP outlines detailed measures to mitigate environmental risks, ensure responsible tailings and water management and deliver ongoing community engagement.
Marc Cernovitch, President and CEO of Lake Victoria Gold, called the approval “a significant milestone,” adding:
“Imwelo represents a rare opportunity for near-term gold production in Tanzania with modest capital requirements and strong expansion potential. Our priority is to bring the project into production while ensuring we operate to the highest environmental and social standards.”
For his part, Chief Operating Officer, Seth Dickinson, said the team is now focused on “the practical steps to bring Imwelo into production,” highlighting strong metallurgical recoveries of over 90%, and a straightforward mine plan.
Partnerships and financing
Execution capacity will be underpinned by a strategic alliance with Taifa Group, Tanzania’s leading mining contractor, which provides both operational support and local validation.
On the financing front, the company has signed a non-binding gold prepay facility term sheet to fund pre-production activities.
The structure is designed to provide non-dilutive capital linked directly to future gold output, although the non-binding status introduces an element of uncertainty.
Risks and opportunities
While the project is well-positioned for near-term production, some challenges remain. But there are also positives such as fully permitted under a 10-year mining license, area C zone averaging 3.7 g/t with high-grade intercepts, metallurgical recoveries exceeding 90 percent, strategic partnership with Taifa Group and being located in established mining district with infrastructure advantages
But on the other hand, the company will be required to negotiate some drawbacks including regulatory requirements, shallow drilling (to ~50m) limits understanding of depth potential and financing term sheet which remains non-binding.
Outlook
With environmental approvals in hand, a robust pre-feasibility study, and strategic partnerships in place, Lake Victoria Gold is moving closer to transforming Imwelo into a producing gold mine. If the company delivers on its 12-month construction-to-production target, Imwelo could become one of Tanzania’s next-generation mines, contributing not only to Lake Victoria Gold’s growth strategy but also to the country’s ambition of strengthening its position as a top African gold producer.
