• Tanzania targets a 16% free carried interest in the Tembo gold project under its mining code.
• Lake Victoria Gold accelerates development plans despite no declared resource yet.
• Strong gold market outlook, with UBS forecasting $6,000/oz by end-2026, supports project momentum.

Lake Victoria Gold announced on March 25 that it is in discussions with the Tanzania government to grant it a 16% free carried interest in the Tembo gold project. The company plans to launch production in the near term through a phased development approach.

Tanzania’s mining code guarantees the state an equity stake in all industrial mining projects under development. Therefore, the ongoing discussions with Lake Victoria Gold form part of this regulatory requirement. The company aims to reduce regulatory risks and facilitate the transition of Tembo into the development phase.

Although the company has not yet defined an official gold resource, it is already evaluating the potential to establish a mine at Tembo. At the same time, it is negotiating an agreement to secure a nearby processing plant while continuing exploration work to confirm initial deposits.

This strategy targets early, low-cost production that can generate revenues to finance long-term development.

“The government participation process is a well-defined and standard component of Tanzania’s mining framework and represents a key step in transitioning Tembo toward development. It is important to note that this regulatory step is advancing in parallel with near-term production planning […]. This integrated approach supports a phased development model, where early production can fund future growth and generate value across the Tembo project area,” the company said in a statement.

This positioning reflects a more supportive gold market environment. Although prices have eased slightly in recent weeks after rising more than 60% in 2025, analysts continue to project an upward trend.

UBS forecasts gold prices could reach $6,000 per ounce by the end of 2026, compared with around $4,560 currently. This outlook could support the advancement of gold projects such as Tembo.

The Tembo project offers potential benefits for both investors and the Tanzanian state as a future shareholder. However, the project’s success depends on Lake Victoria Gold’s ability to execute development plans and confirm viable resources.

Meanwhile, Tanzania already hosts major gold operations, including North Mara and Bulyanhulu operated by Barrick Gold, as well as Geita operated by AngloGold Ashanti.

This article was initially published in French by Aurel Sèdjro Houenou

Adapted in English by Ange J.A de Berry Quenum