Gold Holds Above $4,100; Miners Poised to Capture Explosive Profit Margins

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23 Oct, 2025, 13:00 GMT

USA News Group News Commentary
Issued on behalf of Lake Victoria Gold Ltd.

VANCOUVER, BC, Oct. 23, 2025 /PRNewswire/ -- USA News GroupNews Commentary – Recently, gold pulled back from record highs above $4,300^[1], but the metal is resolutely holding above $4,100 per ounce, a level that was ambitious just months ago^[2]. With production costs stable while gold prices have climbed over 30% YTD, mining equities are capturing accelerating profit margins that significantly outpace the metal's own gains^[3]. This dynamic is compelling urgent attention to near-term developers and producers positioned to convert high-grade ounces into rapid cash flow, positioning Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), TRX Gold Corporation (NYSE-American: TRX) (TSX: TRX), Royal Gold, Inc. (NASDAQ: RGLD), Gold Royalty Corp. (NYSE-American: GROY), and Dryden Gold Corp. (TSXV: DRY) (OTCQB: DRYGF).

Institutional forecasts remain aggressively bullish despite near-term volatility, with several major banks projecting gold could test $4,500 by mid-2026 as central bank buying and geopolitical uncertainty persist^[4]. Historically, mining equities lag initial metal rallies, but are now delivering outsized returns as the sector enters a phase where operational execution directly translates into shareholder value creation for development-stage assets.

Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF) has already mobilized drilling at its highest-grade zone within the fully permitted Imwelo Gold Project in Tanzania, commencing a pivotal campaign at Area C that signals an transition toward near-term production.

The second hole of the 24-hole, 4,000-metre campaign is now underway, through a program meticulously engineered to complete final pit design, lock-in resource confidence, and secure potential extensions at the high-priority starter pit.

"Kicking off drilling at Area C is a tangible step toward first production at Imwelo," said Marc Cernovitch, President and CEO of Lake Victoria Gold. "This program is designed to tighten our final pit design, convert ounces where appropriate, and set up for grade-control drilling so that once construction begins we can move quickly into pre-strip and stockpiling."

The drilling campaign addresses multiple strategic objectives: locking in definitive pit design with granular engineering inputs, upgrading the classification of existing historical gold resources, testing for mineralization beyond currently mapped zones, developing operational mining schedules, and refining gold recovery optimization.

The opening hole is designed to penetrate deeper than prior drilling, testing Area C mineralization at roughly 120 metres depth on the western edge of the zone.

Historical assays from this vicinity include an impressive 6.8 metres at 14.6 g/t gold at 32 m and 2.0 metres at 7.5 g/t from 22m, unequivocally confirming production-grade gold potential.

"We've engineered this campaign to answer the last technical questions: slope angles, ramp geometry, and continuity down-dip and to the west," said Seth Dickinson, Chief Operating Officer of Lake Victoria Gold. "By combining RC with diamond tails we are keeping costs down without compromising core data quality."

The drill mobilization follows LVG eliminating the final key regulatory barrier by reaching a pivotal agreement in principle with the Government of Tanzania on the statutory minimum $16% free carried interest. With environmental approval of the Updated Environmental and Social Management Plan also secured, the regulatory pathway is nowcleared for construction advancement.

Situated just 12 kilometers from AngloGold Ashanti's flagship Geita mine, Imwelo operates under a 10-year renewable mining license with proven metallurgical recoveries surpassing 90%, translating to 90 cents of recoverable value per dollar of contained gold. Critically, Lake Victoria Gold targets first gold production within 12 months of breaking ground.

Powerful financial momentum was fully secured by LVG with the closing of its oversubscribed $6 million financing in September, immediately followed by the closure of a concurrent $2 million private placement. The combined capital is now aggressively fueling key work programs designed to trigger the pre-paid forward purchase facility with Monetary Metals. This process successfully secures non-dilutive financing that targets fully funding the mine's construction capital.

Beyond Imwelo, the Tembo Project delivers signficant optionality via a planned 3,000m drilling program at Ngula 1, where historical intercepts of 28.57 g/t gold over 3 metres signal immediate toll milling opportunity. The company retains exposure to up to US$45 million in high-upside contingent milestone payments from the 2021 asset sale to Barrick's Bulyanhulu operation.

The timing proves supremely strategic. With gold recently eclipsing a historic $4,300 per ounce for the first time in history, Lake Victoria Gold is mobilizing equipment at a fully permitted project in one of Africa's premier gold districts precisely when high-grade ounces command maximum, unprecedented value. This confluence—regulatory clearances, still-high historic metal prices, and active field programs across two projects—positions LVG at the convergence of technical de-risking and an unprecedented market opportunity.

NOTE: For a Cautionary Note on Production Decision, please see the Disclaimer below.

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:

TRX Gold Corporation (NYSE-America: TRX) (TSX: TRX) achieved record quarterly production and sales of 6,404 and 6,977 ounces of gold respectively in Q4 2025, representing a 37% increase in production over Q3 2025 while benefiting from an average realized gold price of approximately $3,350 per ounce. The company's adjusted working capital ratio improved significantly from approximately 0.8 on May 31, 2025, to approximately 1.2 on August 31, 2025, with cash balances reaching approximately $7.8 million after fully repaying $3.0 million in short-term borrowings.

"We're very pleased with the positive trajectory and record gold production achieved at Buckreef Gold this quarter as the Company benefited from access to higher grade ore following successful completion of our scheduled strip campaign earlier in the year," said Stephen Mullowney, TRX Gold CEO. "Our short-to-medium term priorities remain the same - continue to expand and upgrade processing capacity in line with our PEA, continue advancing exploration in key areas, and strengthen our liquidity."

The Company has commenced procurement on several near-term plant enhancements to improve gold recoveries, including downpayments for the addition of a thickener and upgrades to the elution plant, while also advancing longer-term plans to expand the plant to 3,000+ tonnes per day as outlined in the Preliminary Economic Assessment.

Royal Gold, Inc. (NASDAQ: RGLD) announced the closing of acquisitions of Sandstorm Gold and Horizon Copper, issuing approximately 18.6 million shares to Sandstorm shareholders while maintaining the lowest share count of all companies represented in the GDX. The company drew $450 million on its $1.4 billion revolving credit facility to repay outstanding debt assumed with the acquisition and to fund approximately $126 million in cash consideration, leaving $175 million undrawn and available.

"These acquisitions fit our strategic goal of acquiring high-quality and long-life precious metals assets in mining-friendly jurisdictions," said Bill Heissenbuttel, President and CEO of Royal Gold. "I believe the addition of the Sandstorm and Horizon interests creates a global portfolio of precious metals interests that is unmatched in terms of diversification, development and organic growth potential, and exploration optionality."

The combined Company is positioned as a premier growth company in the gold streaming and royalty sector with enhanced scale, diversification and potential for organic growth. Royal Gold estimates repayment of outstanding borrowings could occur within two years assuming current metal prices and the absence of further business development related investments, demonstrating the strong cash flow generation capability of the combined portfolio.

Gold Royalty Corp. (NYSE-American: GROY) announced it recently added the 250th asset to its portfolio with the sale of the Spanish Moon Project to Kinross Gold, retaining a 3% net smelter return royalty on the early-stage exploration project proximate to Kinross' Round Mountain Mine in Nevada. The company's royalty generator model has generated 51 royalties since the acquisition of Ely Gold Royalties Inc. in 2021, currently maintaining 36 properties subject to land agreements and six properties under lease generating land agreement proceeds at minimal operating costs.

"The impressive growth that we have achieved, from 18 royalties at our March 2021 IPO to 250 royalties and streams today comes from our four unique pillars of growth, each contributing to our portfolio throughout the company's history," said David Garofalo, Chairman and CEO of Gold Royalty. "Today we want to highlight our royalty generator model, as it has created our milestone 250th asset – at minimal cost to Gold Royalty."

Recent positive progress from operating companies includes Aura Minerals announcing commercial production at Borborema, where the Company holds a 2% NSR with the mill operating above 80% of design capacity and gold recoveries consistently above 90%.

Gold Royalty's diversified portfolio provides peer-leading expected revenue growth of 367% in gold equivalent ounces by 2029, supported by advancing assets including Fortitude Gold's fully-approved County Line open pit gold project and i-80 Gold's high-grade Granite Creek Underground feasibility study planned for completion in the first quarter of 2026.

Dryden Gold Corp. (TSXV: DRY) (OTCQB: DRYGF) announced drill results from its initial three-hole exploration program at the Sherridon Project in the Dryden Gold District, intersecting several broad zones of anomalous gold mineralization including 1.28 g/t gold over 19.00 meters including 2.55 g/t gold over 9.00 meters and including 36.40 g/t gold over 0.50 meters in a wide mineralized structure. Dryden also purchased two 2% net smelter return royalties for CAN$20,000 from private individuals covering certain claims at Sherridon purchased from Manitou Gold in March 2025.

"I am very excited to see our two-pronged exploration strategy being validated once again," said Trey Wasser, CEO of Dryden Gold. "The geology team is excited about the potential for a completely different deposit model with potential bulk-tonnage scale at Sherridon."

Dryden Gold's geology team has begun resampling historical core drilled adjacent to the new drill holes and is awaiting further geochemical results to further define these zones, with the first pass drilling testing only 350 meters along strike of the five-kilometer geophysical anomaly.

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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