Lake Victoria Mining Company, Inc. (OTCBB:LVCA) (the “Company”),
on behalf of its shareholders, wishes to update the status of its
eight gold projects and the company’s ongoing gold exploration
activities in Tanzania, East Africa in the context of its recent
press releases. The following highlights are designed to give our
shareholders improved understanding that the Company is continuing
with its solid strategic approach in the development of its eight
gold projects with the goal of discovering a commercially feasible
gold resource in Tanzania, East Africa.
Closure of Joint Venture with Otterburn Ventures
Many were surprised at the recent termination announcement of
the four joint venture agreements. Although the Company was neither
expecting nor desiring this outcome, it will realize cash payments
of approximately USD$1,200,000 from the option payments and
exploration commitments, which includes the complete payment for
the 2nd phase of drilling at the Singida gold project. Pursuant to
share purchase agreements dated July 22, 2011 the Company has
agreed to sell the 2,200,000 Otterburn shares to private
purchasers, unrelated to the Company, at a price of $0.10 per
share, recognizing a payment to the Company of an additional
$220,000 by September 2011. The Company also retains one hundred
percent (100%) of its rights to all four of the gold exploration
projects: Singida, Geita, Kalemela and North Mara, that made up the
four option agreements with Otterburn Ventures.
Singida Gold Project Going Forward
Based upon recently reported drill results from the Singida gold
project (see press release dated July 21, 2011
http://www.lakevictoriaminingcompany.com/news/july-20-2011/) the
Company believes that the nature and extent of the mineralization
revealed thus far may lend itself towards a small-scale commercial
mining operation, joint venture or sale of the asset. In keeping
with its focus of building shareholder value, the Company intends
to continue to advance the Singida gold project. An independent
technical team is compiling and reviewing the results from both
drill programs on this project and a preliminary economic
assessment study is planned to determine the feasibility of a
small-scale commercial gold mine at Singida.
Uyowa Gold Project Proceeding to Drill Targeting August
2011
Meanwhile, the end of the rainy season in northwestern Tanzania
marks the recommencement of exploration at the company’s Uyowa gold
project. In 2003, the Uyowa project was the site of encouraging
exploration results by Ashanti Gold.
The Company is focusing current Uyowa exploration in the
northernmost area of PL5153/2008, which includes an active
artisanal area of about 300 meters x 100 meters and its surrounding
environs. Recently, option to purchase agreements were completed
involving four Primary Mining Licenses (PMLs), located in the heart
of the targeted exploration area, to allow the investigation of
their potential. Regional exploration on the remainder of the
prospecting license (PL) to trace the mineralized zone along strike
will be conducted. During August we plan to complete:
- Regional Ground Magnetic survey on 200
meter spaced N-S lines across a grid of 12 kilometers x 6
kilometers.
- Gradient array induced polarization
(IP) survey on 400 meter spaced north-south lines across the
optioned PMLs and extending out along strike across a grid of 10
kilometers x 4 kilometers.
- Soil sampling on 200 meter x 50 meter
grid spacing across a grid area of 2.25 kilometers x 10
kilometers.
- Schlumberger profiles to obtain a more
detailed picture of what's underneath in the broad anomalous areas
outlined by the gradient array.
During mid-August through September a +1500 meter Reverse
Circulation (RC) drill program is planned to test the down-dip
continuity of thickness and grade as well as exploring the strike
extensions of the four (4) main mineralized zones across the
PMLs.
Musoma Bunda Gold Project progresses to increase the Ore
Resource
At the Musoma Bunda project, Kinyambwiga prospecting license
(PL4653/2007) exploration is to be focused on increasing the ore
resource of the Kanunga 1 Prospect by investigating the IP
anomalies along strike as revealed from the Schlumberger profiling
as well as soil and Rotary Air Blast drilling (RAB) hole anomalies.
Exploration during August will include:
- Investigation of the two (2) anomalous
Rotary Air Blast (RAB) targets east of Kanunga 1. Pitting and
trenching is currently in progress and will continue into August.
Once the anomalies have been validated, a number of 50 meter long
north-south trenches will be planned to establish the continuity of
the mineralized lenses.
- Pitting of the Schlumberger VES targets
to the west of Kanunga 1 is also in progress. If the “mbuga” (black
cotton soil cover) is too thick to pit (>3m), then investigation
of these targets will be by an Auger Rig.
Based on the results of the pitting, trenching and auger
drilling, a +2500 meter Reverse Circulation (RC) drilling program
is planned for September 2011.
At Suguti (PL3966/2006) and Murangi (PL4511/2007) prospecting
licenses, also part of the Musoma Bunda gold project, exploration
during August will include:
- Pitting, with follow-up trenching
across the IP anomaly in the northeast part of the Suguti
license.
- Follow-up investigation of the isolated
soil anomalies hosted by banded iron formation (BIF), south of the
Suguti Fault on the southern side of the license, including pitting
and trenching to define any geochemical anomalies.
- Orientation sample pits across ground
magnetic anomalies on the Murangi license.
Based on the results from the pitting and trenching, a targeted
auger drilling/sampling will commence during September and October
to clearly define the anomalous zones.
Company advancing progressively
President and CEO, Mr. David Kalenuik said: “We have eight gold
projects in Tanzania. Although we have focused our primary
attention on the Singida gold project over the past two years, all
of our project areas are prospective for gold and we have been
steadily advancing a number of these along behind the scenes. Based
on the results to date, we have a decision to make with regard to
Singida, should we pursue a pathway to mine the asset or simply
attempt to joint venture or sell it. We are receiving independent
technical advice in that regard. Meanwhile, we are poising
ourselves for discovery at several of the Company’s project areas
that we have been advancing and we are very excited about the
potential that each of them could result in over the next few
months. I can say with confidence, that both the management and
technical team of Lake Victoria are fully committed to discovering
a major gold resource out of our portfolio.”
The Company stated in its 10K filed on July 14, 2011, that it
expects to be able to meet its necessary cash outflows for the next
twelve months from working capital at March 31,2011.
http://www.lakevictoriaminingcompany.com/investors/filings/
The Company has completed NI43-101 reports for the Singida and
Musoma Bunda gold projects. These reports can be found on the
Company’s website at the following URL’s:
http://www.lakevictoriaminingcompany.com/mining-operations/gold/singida-gold-project/
http://www.lakevictoriaminingcompany.com/mining-operations/gold/musoma-bunda-gold-project/
About the Company
Lake Victoria Mining Company, Inc. is working to create another
gold mine in the world famous Lake Victoria Greenstone Belt,
Tanzania, East Africa. Tanzania is Africa's third largest gold
producer, behind South Africa and Ghana, but also has reserves of
uranium, nickel and coal. Gold exports alone earned it $1.076
billion in 2009, up from $932.4 million the previous year. Lake
Victoria holds nine prospective gold projects and five uranium
projects within its Tanzania property portfolio. Additional
information regarding the Company is available on the corporate
website at: www.lakevictoriaminingcompany.com
The reader is cautioned that the potential quantity and grade of
the regional exploration target is conceptual in nature; it is
uncertain if further exploration will result in the exploration
target being delineated as a mineral resource and there is no
guarantee that these resources, if delineated, will be economic or
sufficient to support a commercial mining operation. The Company's
production objectives are intended to provide an indication of
management's current expectations and are still conceptual in
nature. It is uncertain that it will be established that these
resources will be converted into economically viable mining
reserves. Until a feasibility study has been completed, there is no
certainty that these objectives will be met.
Clive King, P.Geo, a Qualified Person as such term is defined in
Canadian National Instrument 43-101, is responsible for monitoring
the supervision and quality control of Lake Victoria’s exploration
program and has reviewed and verified the technical information
contained in this news release. Clive King, registered with the
South African Council of Natural Scientific Professions (Pr.Sci.Nat
Reg. No. 400065/09).
Forward Looking Disclaimer
This news release may contain forward-looking statements or
information within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and within the meaning of
Canadian provincial securities laws applicable to the Company.
Forward-looking statements are typically identified by words such
as: believe, expect, anticipate, intend, estimate, postulate and
similar expressions, or are those, which, by their nature, refer to
future events. Forward-looking statements or information are
subject to a variety of risks and uncertainties which could cause
actual events or results to differ from those reflected in the
forward-looking statements or information, including, without
limitation, risks and uncertainties relating to obtaining financing
to meet the Company's exploration programs and operating costs
during its exploratory stage, the interpretation of exploration
results and the estimation of mineral resources and reserves, the
geology, grade and continuity of mineral deposits, the possibility
that future exploration, development or mining results will not be
consistent with the Company's expectations, accidents, equipment
breakdowns, title matters, or other unanticipated difficulties with
or interruptions in production and operations, the potential for
delays in exploration or development activities or the completion
of feasibility studies, the inherent uncertainty of production and
cost estimates and the potential for unexpected costs and expenses,
commodity price fluctuations, currency fluctuations, regulatory
restrictions, including the inability to obtain mining permits and
environmental regulatory restrictions and liability, the
speculative nature of mineral exploration, dilution, competition,
loss of key employees, and other risks and uncertainties, including
those described under "Risk Factors" in the Company's Annual Report
on Form 10-K filed on July 14, 2011, which is on file with the
Securities and Exchange Commission, as well as the Company's
periodic filings available at www.sec.gov and with Canadian
Securities Administrators at www.sedar.com. Should one or more of
these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in forward-looking statements. Accordingly,
readers are advised not to place undue reliance on forward-looking
statements or information. The Company does not undertake any
obligation to release publicly revisions to any "forward-looking
statement," to reflect events or circumstances after the date of
this news release, or to reflect the occurrence of unanticipated
events, except as is required under applicable securities laws.
Cautionary note to U.S. Investors - This press release contains
information about adjacent properties on which we have no right to
explore or mine. We advise U.S. investors that the SEC's mining
guidelines strictly prohibit information of this type in documents
filed with the SEC. U.S. Investors are cautioned that mineral
deposits on adjacent properties are not indicative of mineral
deposits on our properties. This press release and the NI 43-101
technical reports referenced herein uses or may use the terms
"mineral resource," "measured mineral resource," "indicated mineral
resource", "inferred mineral resource", "potential target",
"potential mineral resource", "potential mineral deposit" and
"potential target mineral resource". We advise investors that these
terms are defined in and required to be disclosed by NI 43-101;
however, these terms are not defined terms under Guide 7 and are
normally not permitted to be used in reports and registration
statements filed with the SEC. Investors are cautioned not to
assume that any part or all of mineral deposits in these categories
will ever be converted into Guide 7 reserves. "Potential target
mineral resources" are strictly uncertain as to their existence,
and strictly uncertain as to their economic and legal feasibility.
"Inferred mineral resources" have a great amount of uncertainty as
to their existence, and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of a
potential target resource or an inferred mineral resource will ever
be upgraded to a higher category. Under Canadian rules, estimates
of inferred mineral resources may not form the basis of feasibility
or pre-feasibility studies, except in rare cases. Investors are
cautioned not to assume that all or any part of any mineral
resource exists or is economically or legally mineable.
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