TSX Mining Rally Sparks Renewed Interest in Small-, and Mid-Cap Gold Stocks
Issued on behalf of Lake Victoria Gold Ltd.
VANCOUVER – Baystreet.ca News Commentary – As the TSX notches its longest winning streak since 2021—fueled in large part by rising mining shares—investor focus is beginning to shift toward overlooked small- and mid-cap gold stocks. This resurgence comes as gold rebounds sharply above $3,300 following a Moody’s downgrade of the US Government’s credit rating, reigniting safe-haven demand. While major producers just posted some of their strongest quarterly results in history, many juniors and developers remain deeply discounted, offering what some analysts call a widening disconnect between metal prices and equity valuations. Among the gold stocks making moves recently include Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), Lumina Gold Corp. (TSXV: LUM) (OTCQB: LMGDF), New Pacific Metals Corp. (NYSE-American: NEWP) (TSX: NUAG), Rio2 Limited (TSXV: RIO) (OTCQX: RIOFF), and New Found Gold Corp. (NYSE-American: NFGC) (TSXV: NFG).
Goldman Sachs now sees a potential breakout to $3,500 as central bank buying intensifies and monetary policy shifts toward easing. Meanwhile, Jefferies points to one of the largest valuation gaps on record—arguing that many gold stocks still trade as if bullion were stuck at $2,500 an ounce.
Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF) is building momentum in Tanzania by exploring a low-capex pathway to near-term development. The company recently engaged Nesch Mintech Tanzania—an independent, highly regarded metallurgical and process engineering firm—to evaluate a local processing plant that could accelerate gold recovery while minimizing upfront spend. This follows a non-binding LOI with Nyati Resources, signaling early alignment on a phased development model. Nesch’s review will determine the plant’s readiness, potential gold recovery rates, and what targeted improvements could optimize output.
"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.”
Should the partnership proceed, Lake Victoria Gold would start trucking mineralized material from its 100%-owned Mining Licences to Nyati’s existing 120-ton-per-day plant, with potential to expand into a new 500-ton-per-day facility nearing completion. Combined, the two sites offer the foundation for a centralized processing hub—creating a streamlined, low-CAPEX development model with room to scale. For LVG, it represents a faster potential path to revenue with limited capital exposure.
“This audit is an important milestone as we advance this most compelling near-term gold development opportunity,” said Simon Benstead, Executive Director of Lake Victoria Gold. “By combining strategic processing infrastructure with high-potential development targets, the proposed joint venture has the potential to unlock meaningful value for all stakeholders. We look forward to working closely with Nesch Mintech to validate the plant’s performance and move confidently toward execution.”
While still early in its development cycle and not yet supported by a formal resource estimate or Feasibility Study, the proposed initiative offers LVG a rare chance to validate its geology through live processing of mineralized materials. As with any small-scale operation, risks around grade variability, metallurgy, permitting, and financing remain. But if the plan works, it could fast-track initial cash flow and create a self-funded path for continued exploration. The Nyati agreement also builds on LVG’s earlier move to evaluate small-scale development scenarios at its Tembo Project—located immediately adjacent to Barrick’s high-grade Bulyanhulu mine.
Tembo has already seen more than US$28 million in historical exploration, with over 50,000 metres of drilling defining multiple high-potential zones. Key targets like Ngula 1, Nyakagwe Village, and Nyakagwe East remain open along strike and at depth—pointing to meaningful long-term upside as the district continues to attract attention.
“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.”
Lake Victoria Gold is steadily aligning capital, partnerships, and permitting to bring its Tanzanian portfolio into focus. While the high-potential Tembo Project remains the company’s long-term exploration driver, its fully permitted Imwelo Project is currently in the lead as the most construction-ready asset. Backed by a 2021 Pre-Feasibility Study and located near AngloGold Ashanti’s Geita Mine, Imwelo offers a clear path toward near-term development.
To help move things forward, LVG signed a non-binding gold prepay term sheet with Monetary Metals in late 2024. The agreement provides upfront, non-dilutive capital in exchange for a portion of future production—tying repayment directly to output and reducing balance sheet risk. The structure supports access to value equivalent to up to 7,000 ounces of gold, with funds designated for early development and construction activity.
Additional backing came in early 2025 through a C$3.52 million investment from Taifa Group, part of a larger C$11.52 million multi-stage financing. Alongside the capital, LVG welcomed former Taifa CEO Richard Reynolds to its board—bringing seasoned regional insight and operational depth.
Looking ahead, the company also maintains a milestone-based earn-in agreement with Barrick worth up to US$45 million, contingent on future exploration success at Tembo. With plant evaluations underway, a potential joint venture on the table, and multiple funding mechanisms in play, Lake Victoria Gold is shaping up as a serious contender among East Africa’s next wave of junior gold developers.
CONTINUED… Read this and more news for Lake Victoria Gold at: https://usanewsgroup.com/2025/04/02/with-funding-commitments-in-place-a-gold-mine-is-being-built-and-this-stock-is-still-under-0-20/
In other industry developments and happenings in the market include:
Lumina Gold Corp. (TSXV: LUM) (OTCQB: LMGDF) has entered into a definitive agreement to be acquired by CMOC Singapore in an all-cash transaction valued at C$581 million. The offer of C$1.27 per share represents a 71% premium to Lumina’s 20-day VWAP and is backed by voting support agreements from holders of over 52% of shares outstanding. The deal includes a concurrent US$20 million convertible note financing to support ongoing development at Lumina’s flagship Cangrejos project in Ecuador.
"After advancing the Cangrejos project for over 10 years and taking it from no defined resources to being poised to be one of the largest gold projects globally, the Lumina Group is excited for the transition of the Cangrejos project to CMOC," said Marshall Koval, CEO of Lumina Gold Corp. "The Lumina team looks forward to working with CMOC and all existing stakeholders to ensure the successful future development of the project."
New Pacific Metals Corp. (NYSE-American: NEWP) (TSX: NUAG) reported solid financial footing in Q3 with $16.67 million in working capital and continued investment in its high-grade silver projects in Bolivia. Exploration expenditures totaled approximately $0.72 million during the quarter, with work advancing at both Silver Sand and Carangas.
The company posted a small net loss of $0.86 million ($0.01 per share), marking a year-over-year improvement as cost discipline and operational focus remain in place. With development momentum and one of the most prospective silver portfolios in the region, New Pacific is well-positioned heading into year-end.
Rio2 Limited (TSXV: RIO) (OTCQX: RIOFF) recently reported that construction at its Fenix Gold Project in Chile is now 19% complete and remains on track for first gold production in January 2026. The company has invested $30.1 million to date—nearly mirroring its $30.5 million budget—and has completed procurement of all long-lead equipment.
Key infrastructure such as the ADR plant and leach pad are under development, while grade control drilling has started in pit areas tied to the first three years of mine life. With a low-impact, heap-leach design and a 4.8Moz resource, Fenix is one of the largest undeveloped oxide gold projects in the Americas.
New Found Gold Corp. (NYSE-American: NFGC) (TSXV: NFG) recently launched its 2025 exploration and development program at the Queensway Gold Project in Newfoundland, following the release of its maiden mineral resource earlier this year.
"We are excited to begin our 2025 work program at Queensway," said Melissa Render, President of New Found Gold Corp. "With an initial mineral resource announced in Q1/25 and a fully-funded PEA scheduled for completion later this quarter, the primary focus at Queensway has shifted to put the Company on a path towards development."
Infill drilling is underway at key zones including Keats West and Lotto, with two more rigs to be added in June to support both resource expansion and new discovery efforts. A fully funded preliminary economic assessment is expected by late Q2, with bulk sampling targeted for the first half of 2026.
Article Source: https://usanewsgroup.com/2025/04/02/with-funding-commitments-in-place-a-gold-mine-is-being-built-and-this-stock-is-still-under-0-20/
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