Gold tops $4,000 as mill capacity becomes bottleneck

Issued on behalf of Lake Victoria Gold Limited

VANCOUVER, British Columbia, Sept. 16, 2026 (GLOBE NEWSWIRE) -- US Metal News News Commentary - Agnico Eagle realised $4,483 per ounce of gold in its second quarter and generated record free cash flow of $1.34 billion. In the same quarter it lost access to roughly 370,000 ounces at Canadian Malartic after a rock mass movement at the Barnat pit, and guided full year production to the low end of its range. Both things are true at once, and together they describe the industry’s current position better than any price chart. Margins have never looked better. The physical path from an ounce in the ground to an ounce in a pour has not got any shorter, and for developers without a mill of their own it may have got longer. Companies mentioned in today’s commentary include: Lake Victoria Gold Limited (TSXV: LVG) (OTCQB: LVGLF) (FSE: E1K), Agnico Eagle Mines Limited (NYSE: AEM), Equinox Gold Corp. (NYSE American: EQX), Alamos Gold Inc. (NYSE: AGI), and B2Gold Corp. (NYSE American: BTG).

Key Takeaways

Processing capacity is the constraint, not the deposit. A developer without a mill either builds one, which takes years and hundreds of millions, or finds someone who already has one. The second route is why toll milling has become a live strategy rather than a footnote.

Land access has to be finished before either route opens. Lake Victoria Gold has initiated the first land valuation and compensation programme at its Tembo Gold Project, covering 111.32 acres directly over the Ngula 1 deposit, with completion targeted for early October 2026.

The programme deliberately covers two licence areas. It spans 88.51 acres within the mining licence held by the Company’s Tanzanian subsidiary and 22.81 acres associated with primary mining licences held by Nyati Resources, the counterparty to the Company’s previously announced toll-milling arrangement.

Ngula 1 holds the majority of the ounces. The maiden Tembo Mineral Resource Estimate, effective 29 May 2026, puts Ngula 1 at 267,900 ounces of Inferred and, reported separately, 62,700 ounces of Indicated contained gold. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

Even the majors are being reminded that ground behaves how it wants. Agnico Eagle lost access to roughly 370,000 ounces to a pit wall movement, and B2Gold narrowed guidance at its newest mine after a crushing circuit fire. Capital does not override physical constraints.

Why a 500-Tonne-Per-Day Plant Matters More Than It Sounds

Building a processing plant is the single largest discrete cost in bringing a small gold deposit into production, and it is also the longest pole in the schedule. It needs capital before revenue exists, permits of its own, a power solution, a tailings facility and a workforce. For a developer holding a few hundred thousand ounces, the plant can cost more than the deposit is worth at a conservative price deck, which is the reason so many modest deposits in good districts have never been mined.

Toll milling removes that problem by renting capacity instead of building it. Ore is trucked to an existing plant, processed under contract, and the owner takes a fee. It converts an enormous capital decision into an operating cost, and it can compress years off a timeline. It also introduces a dependency, because the developer no longer controls the schedule, the throughput or the plant’s maintenance calendar, and the arrangement is only as durable as the agreement behind it.

What makes toll milling viable at all is proximity and land. The ore has to move a short distance over ground that somebody has the right to cross and to occupy. That is why a land compensation programme covering two adjoining licence areas is not an administrative footnote in this particular story. It is the step that makes the rest of the plan physically possible.

What Lake Victoria Gold Announced

Lake Victoria Gold Limited (TSXV: LVG) (OTCQB: LVGLF) (FSE: E1K) announced that its wholly owned Tanzanian subsidiary, Mineral Industry Promotion and Consulting Company Limited, has formally initiated the Phase 1 land valuation and compensation programme at Ngula Village, covering the Ngula 1 deposit at the Tembo Gold Project. It is the first land access programme undertaken at Tembo, and it applies the same statutory process the Company has run three times to completion at its Imwelo Gold Project.

The subsidiary submitted a formal application to the District Executive Director of Geita District Council requesting that the Council undertake the statutory valuation and compensation exercise, in accordance with the Mining Act, Cap. 123 and Tanzanian land legislation, with a copy provided to the Office of the District Commissioner. A corresponding application covering the Nyati primary mining licence area was submitted concurrently. Together they cover 111.32 acres. Completion is targeted for early October 2026, a date that depends on the Council appointing a District Valuer and an Authorised Land Officer and completing the exercise.

The Company has tied the programme explicitly to its previously announced toll-milling arrangement with Nyati Resources (T) Limited, under which Nyati’s 500-tonne-per-day processing plant would process material from Tembo, including from Ngula 1. Securing orderly access across both licence areas is what allows that pathway to advance. The arrangement remains subject to confirmatory drilling, permitting, financing and the execution of a definitive agreement, and no definitive agreement has been executed.

"We are taking the playbook that has worked at Imwelo and applying it at Tembo, starting at Ngula 1 because that is where our resource is concentrated and where our next phase of work is directed. There is no urgency forcing this. That is exactly the point. Doing land access properly, through the district authorities and the statutory valuation process, takes as long as it takes, and the way you avoid that becoming a problem is to start it early and run it transparently. We have the community and the district engaged from day one, and we intend to keep it that way," commented Marc Cernovitch, President and Chief Executive Officer of Lake Victoria Gold.

The subsidiary holds four contiguous mining licences over Tembo, granted in 2025 for terms of up to ten years, spanning the Geita and Nyang’hwale districts of the Geita Region and the Kahama district of the Shinyanga Region. Tembo sits adjacent to Barrick’s Bulyanhulu Mine, though mineralization on adjacent or nearby properties is not necessarily indicative of mineralization at Tembo.

The Majors Are Not Immune to This

The companies below are referenced solely as market and sector context. None is a peer, competitor or financial comparable of Lake Victoria Gold, and their results are not indicative of its prospects. They are named because each illustrates, at a scale a developer will never reach, that a record gold price does not remove physical and procedural constraints.

Agnico Eagle Mines Limited (NYSE: AEM) Agnico Eagle reported second quarter 2026 payable gold production of 855,816 ounces at a realised gold price of $4,483 per ounce, up 36% year over year, producing record quarterly free cash flow of $1.335 billion and record shareholder returns of $625 million including a $0.45 quarterly dividend and $400 million of buybacks. Net cash reached $3.27 billion against total long-term debt of $197 million, and Fitch upgraded the Company’s long-term issuer default rating to A minus in April 2026. And yet full year production is now expected near the lower end of its 3.3 to 3.5 million ounce range, following a rock mass movement at the Barnat open pit at Canadian Malartic reported on July 2, 2026, which made roughly 370,000 ounces inaccessible with mining targeted to resume in the fourth quarter. The strongest balance sheet in the sector did not prevent it and could not accelerate the fix.

Equinox Gold Corp. (NYSE American: EQX) Equinox Gold completed its business combination with Orla Mining on July 31, 2026, issuing 378,115,579 common shares, and Chief Executive Darren Hall described the combined business as North America’s new senior gold producer. Consolidated 2026 production guidance was set at 870,000 to 920,000 ounces, reflecting twelve months from the existing portfolio and five months from the Orla assets, with pro forma annual production of approximately 1.1 million ounces. The quarterly dividend was increased 50% to US$0.0225 per share, and available liquidity was reported at $729 million of cash plus $485 million of undrawn revolver. The board also approved construction of the Phase 2 expansion at Valentine, intended to lift processing capacity to approximately 13,700 tonnes per day. That is the point worth carrying across: even a senior producer with a strong balance sheet solves a throughput problem by approving a multi-year construction project. Note that Orla Mining no longer trades as a separate issuer following the combination.

Alamos Gold Inc. (NYSE: AGI) Alamos Gold produced 130,600 ounces in the second quarter of 2026, meeting revised quarterly guidance and up 5% on the first quarter, with the Island Gold District delivering record underground mining rates, milling rates and production. Chief Executive John McCluskey noted that this offset lower than expected production from Mulatos and Young-Davidson, and that the Company revised full year consolidated production and cost guidance downward with lower mining rates at Young-Davidson as the primary driver. Alamos is the clearest illustration in this group of how throughput and grade interact across a portfolio. Record milling rates at one asset were not enough to hold consolidated guidance when another underperformed, which is the same arithmetic a single-asset developer faces without the benefit of diversification.

B2Gold Corp. (NYSE American: BTG) B2Gold reported consolidated second quarter 2026 gold production of 203,648 ounces at cash operating costs of $1,201 per ounce produced, with Fekola, Masbate and Otjikoto ahead of expectations. Its Goose Mine in Nunavut, which poured first gold in mid-2025 and reached commercial production later that year, produced only 12,890 ounces in the quarter following a fire in the crushing circuit in April 2026. Goose guidance for 2026 was narrowed to 170,000 to 200,000 ounces from 170,000 to 230,000, and consolidated guidance to 820,000 to 920,000 ounces. Repairs were on schedule for completion in the third quarter, with Phase 2 of the planned crushing circuit upgrades scheduled for the first half of 2027 to bring Goose to an average daily capacity of 4,000 tonnes. A newly built mine in its first full year of commercial production, backed by a producer with three other operating mines, is still eighteen months from running its crushing circuit at design capacity. That is the honest benchmark for how long processing infrastructure takes to work properly.

What to Watch

Three things, in order. Whether Geita District Council appoints the valuation officers and the compensation exercise completes near the early October target, which is the only dated commitment in the release. Whether the toll-milling arrangement with Nyati moves from announced to definitive, since that is what converts a land programme into a production pathway. And whether the infill drilling recommended in the Company’s technical report converts any part of the 267,900 Inferred ounces at Ngula 1 into a higher confidence category, because Inferred material cannot carry an economic study.

None of that is quick, and none of it is assured. Lake Victoria Gold has not completed a preliminary economic assessment, pre-feasibility study or feasibility study for Tembo, no Mineral Reserves have been estimated, and any decision to commence production would not be based on a feasibility study demonstrating economic and technical viability. What the announcement does is take the least controllable item on the critical path and start it eighteen months before it could possibly matter. In a sector where the gold price has solved the economics and left the timeline exactly where it was, that is a more meaningful piece of news than it first appears.

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CONTINUED... Read this and more news for Lake Victoria Gold Limited (TSXV: LVG) (OTCQB: LVGLF) (FSE: E1K) at: https://www.lakevictoriagold.com

Article Sources: [1] Lake Victoria Gold Limited, "Lake Victoria Gold Initiates First Land Compensation Programme at Tembo, Covering 111.32 Acres Over the Ngula 1 Deposit," September 2026. [2] Agnico Eagle Mines Limited, second quarter 2026 results, July 29, 2026. [3] Equinox Gold Corp., second quarter 2026 results, GlobeNewswire, August 5, 2026. [4] Alamos Gold Inc., second quarter 2026 results, GlobeNewswire, July 29, 2026; B2Gold Corp., second quarter 2026 results, August 6, 2026. [5] Public disclosures and filings of the referenced companies.

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This article is being distributed by US Metal News, which is wholly owned and operated by Market Equities Limited ("MEL"), a company incorporated under the laws of Ireland. MEL has been paid a fee directly by Lake Victoria Gold Limited for Lake Victoria Gold advertising and digital media services. MEL also expects to receive further compensation as part of an ongoing digital media effort to increase visibility for the company. No further notice will be given, but let this disclaimer serve as notice that all material, including this article, has been approved by Lake Victoria Gold Limited. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged not to use this publication as the basis for any investment decision.

Market Equities and its owners, operators, directors, and affiliates own shares of Lake Victoria Gold Limited, and reserve the right to buy and sell, and will buy and sell, shares of Lake Victoria Gold Limited at any time without further notice, commencing immediately and ongoing, in the open market, through private placements, and/or through other investment vehicles. There may also be third parties who hold shares of Lake Victoria Gold Limited and may liquidate their shares, which could have a negative effect on the price of the stock.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this publication is not trustworthy unless verified by their own independent research. Because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. This document is governed by the laws of Ireland.

Cautionary Note Regarding Mineral Resources and Production Decisions: Inferred Mineral Resources are estimated with a lower level of confidence than Indicated Mineral Resources, and it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded through continued exploration. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The Company has not completed a preliminary economic assessment, pre-feasibility study or feasibility study for the Tembo Project and no Mineral Reserves have been estimated. Any decision to commence production at Tembo would not be based on a feasibility study of Mineral Reserves demonstrating economic and technical viability and would therefore involve increased uncertainty and multiple technical and economic risks of failure. The toll-milling arrangement with Nyati Resources (T) Limited remains subject to confirmatory drilling, permitting, financing and the execution of a definitive agreement, and no assurance is given that any definitive agreement will be executed or that any production will occur. Statements regarding the appointment of a District Valuer and an Authorised Land Officer by Geita District Council, the early October 2026 target for completion of the Phase 1 land valuation and compensation programme, completion of the statutory process in respect of both licence areas, future work programmes at Ngula 1 including infill drilling, and the potential for near term production at Tembo are forward-looking and may not occur as described.

Adjacent Property Disclaimer: Mineralization hosted on adjacent or nearby properties, including the Bulyanhulu Mine, is not necessarily indicative of mineralization on the Tembo Project. Geological comparisons and structural interpretations are interpretive, and there is no certainty that additional drilling will result in the discovery, conversion or growth of Mineral Resources.

Qualified Persons: The technical report supporting the Company’s maiden Mineral Resource Estimate for Tembo was prepared by independent Qualified Persons Noleen D. Pauls (M.Sc., Pr. Sci. Nat., FGSSA) and Dean Richards (B.Sc. (Hons), Pr. Sci. Nat., MGSSA) of Obsidian Consulting Services, each a Qualified Person as defined under NI 43-101 and independent of the Company, with the Mineral Resource Estimate prepared by Mr. Richards. The scientific and technical information in the Company’s news release has been reviewed and approved by David Scott, Pr. Sci. Nat., a Qualified Person as defined by NI 43-101. Mr. Scott is a Director and Officer of the Company and is therefore NOT independent of the Company. Please refer to the Company’s filings on SEDAR+ at www.sedarplus.ca for the assumptions and risk factors associated with its disclosure. Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of the Company’s releases.

References to Agnico Eagle Mines Limited, Equinox Gold Corp., Alamos Gold Inc. and B2Gold Corp. are provided solely as market and sector context. None of them is a peer, competitor, or financial comparable of Lake Victoria Gold Limited. They are at materially different stages of development and scale, operate different assets in different jurisdictions, and their production, reserves, resources, costs, guidance, dividends, buybacks, free cash flow and share performance are not indicative of Lake Victoria Gold Limited’s prospects. Lake Victoria Gold Limited is a pre-revenue exploration and development company. No partnership, affiliation, sponsorship, or endorsement is implied, and none of the companies named has any involvement in Lake Victoria Gold Limited, this article, or its distribution. Financial and operating figures attributed to those companies are as disclosed by them in their own releases and filings and have not been independently verified by the publisher. Gold price levels cited are as of the dates stated, are volatile, and past performance does not guarantee future results.

Eagle Eye is an investor signal-intelligence platform affiliated with the publisher of this article, and this reference constitutes promotion of an affiliated product. Eagle Eye is not a broker-dealer, and nothing in the platform or in this article is financial, investment, tax, or legal advice. Data provided in the platform is for informational purposes only and may be delayed. Always do your own research before making any investment decision.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and "forward-looking information" within the meaning of applicable Canadian securities laws, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected", "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including delays in the appointment of statutory valuation officers or in the conduct of the valuation and compensation process by Geita District Council, changes in the position of the Council, the District Commissioner or other government authorities, the outcome of discussions regarding development and production commencement milestones, the Company’s relationship with and rights in respect of land held by Nyati Resources, land access and community relations risks generally, and other risks identified in the Company’s filings on SEDAR+ at www.sedarplus.ca. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and US Metal News undertakes no obligation to update such statements.

GlobeNewswire

September 16, 2026 - 9:45 AM PDT

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