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Lake Victoria Gold Limited

*** Information Only - This is NOT an offer to purchase shares ***

LVG is seeking a UK main board listing which will also involve raising the capital to develop its Imwelo Gold Project. While we have not factored any dilution associated with the listing, the Company as it stands is relatively cheap compared to its ASX listed peers.

  • Lake Victoria Gold Limited (“LVG”) is an unlisted Australian companyfocused on developing the Imwelo Gold Project near Lake Victoria inTanzania. This area hosts greenstone belts and is 15 km west ofGeita, one of AngloGold Ashanti’s flagship mines which has been inoperation since the 1930s and with production in excess of 7.7 Moz.
  • The Imwelo Gold Project comprises a granted mining lease (ML 538)and has an open pit and underground resource base comprising291,600 oz at 1.9g/t and which is open in multiple directions.
  • The mineralization non-refractory and occurs in steeply dippingquartz veins and is shear hosted. Recent drillhole intersectionsinclude:
    • IMWDD-003: 14.72 g/t gold over 5 m from 49m
    • IMWRC-009: 6.75 g/t gold over 4 m from 61 m
    • IMWRC-018: 4.24 g/t gold over 4 m from 37 m
    • IMWRC-037: 14.15 g/t gold over 7m from 33 m
  • LVG has plans to develop the Imwelo Gold Project into a modest20,000 oz pa producer with low (US$6m) capex and first goldproduction is expected 10 months from project commencement. Thisapproach de-risks the project and at the same time enables LVG tocontinue to build its resource base. In this respect it has negotiated a3-month option agreement with Katoro Gold plc which coversadjacent Mining Lease Applications ML640 and ML641 as well as 54Prospecting Licences in various stages of issue/grant/renewal. The exercise price is US$1m and the project contains a JORC resource of500,000 oz.
  • Breakaway Research has estimated project returns which includes anNPV of US$20.9m and IRR of 75%. At this share price the Companywould have:
    • An NPV of A$0.23 per share (US$0.17/share).
    • An average Price/Earnings ratio of 3.6 times.
    • An average Price/Cashflow ratio of 3.9 times.
  • LVG has been approached by a UK entity which can fast track a UKmain board listing. Costs associated with the listing are estimated atUS$500k and the listing would involve raising the US$6m to develop the Imwelo project.

***Information Only - This is not an offer to purchase shares ***

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More details about Lake Victoria Gold Limited

Official website: https://lakevictoriagold.com/

ASX on Hotcooper: http://hotcopper.com.au/asx/N/A

Markets: Gold