Lake Victoria Mining Company

African Barrick Gold (ABG), the new company, which has taken over four gold mines in Tanzania, hopes raise up to $1 billion (about Sh1.3 trillion) when it sells 25 per cent of its stake to investors in London next month.

According to reports released yesterday in the United Kingdom, after raising the targeted capital during the initial public offer (IPO), some of the proceeds will be used to enhance and expand the new company’s operations in Africa, and clear debts.

The Sh1.3 trillion is almost equivalent to one-eighth of the Tanzania Government’s current Budget.

The amount is also nearly a fourth of the current value of the total shares being traded on the Dar es Stock Exchange (DSE), which recorded a turnover of only Sh94 million in yesterday’s trading session.

However, some local experts have raised doubts over the decision to float ABG shares in London, instead of Tanzania, where the company has most of its assets.

These comprise Bulyanhulu, North Mara, Tulawaka and Buzwagi mines, representing 9.6 per cent of total gold production of the parent company, Barrick Gold Corporation, which has a market capitalisation of about $37 billion (about Sh48.1 trillion).

The new vehicle established to cater for the interests of the world’s biggest gold producer in Africa will target institutional investors in the IPO.

The UK headquartered spin-off has assets worth about $4 billion (about Sh5.2 trillion) and is likely to be admitted to the FTSE 100 Index after selling the 25 per cent of its enlarged share capital.

According to people familiar with the flotation, the biggest gold producer in Tanzania started pre-marketing its $875 million to $1 billion IPO on Monday.

UK capital markets sources said the IPO would be London’s biggest in almost two years. Two of Tanzania’s mostly oversubscribed IPOs, Twiga Cement in 2006 and National Microfinance Bank in 2008, raised Sh92.5 billion and Sh224 billion, respectively.

British papers have reported that some analysts believe Barrick’s new African subsidiary, which will later list on the DSE, is an attempt by the Canadian multinational to reduce portfolio risk.

Barrick has been operating in Tanzania for a decade, producing 716,000 ounces in 2009, which would make it the largest UK-listed gold producer at flotation and the fourth largest working in Africa.

Mr Greg Hawkins, the new chief executive of ABG, said Barrick had been looking at how to develop its African assets and maximise their value.

“With the African assets sometimes it’s been difficult to grow because there are so many other huge Barrick projects around the world and Africa is often a bit smaller and hard to get on the radar,” he said.

Barrick’s primary listing is on the Toronto Stock Exchange but the AGB offering was seeking to tap London-based investors seen as more favourable toward African assets.

“Our understanding is that Africa is more attractive for the investor base in Europe and London,” said Mr Hawkins. “There’s a variety of reasons for this: London’s neatly in the time zone, there’s the history.”

But local economists and other experts have warned that the secondary listing of ABG at the DSE would not be of much benefit, as was being anticipated in some quarters.

They argued that the London flotation would raise the price of the shares beyond the reach of the majority people in Tanzania.

Barrick’s new move came as it reported a fourth-quarter net income of $215 million, or 21 cents per share, compared with a loss of $468 million, or 53 cents per share, in the year-ago quarter.

Mr Joe Lunn, an analyst at British firm FinCapp, said: “It’s a marketing thing. London is starved of large-cap gold miners.

Randgold Resources is the only mid-to large-cap producer in London and as such commands a significant premium. In spinning off its African assets, Barrick will be hoping this new company commands a similar premium.”

The sceptical local experts are calling for a careful assessment of the DSE listing plan even as other stakeholders laud the move as a major development in the quest for public participation in the ownership of the country’s mineral wealth.

The latter also argue that the listing will boost the Dar bourse’s operations and performance, which currently has only 15 companies.

In wide-ranging interviews since last Thursday, when Barrick officials announced the development to reporters at a briefing in Dar es Salaam, the local experts have given insights into what the public should expect.

The most notable concern is whether the intended listing of the company on the local stock market will be affordable for the majority.

Barrick officials say the DSE listing will facilitate local ownership of the company.

“Listing on the DSE will allow for local investors to participate in the gold business and increase our profile both in Tanzania and Africa,” said Mr Deo Mwanyika, the vice-president for corporate affairs in the new firm, ABG.

But the Civic United Front (CUF) national chairman, Prof Ibrahim Lipumba, said the share-trading plan at the DSE following the London IPO would not be of benefit to the national economy. He said that due to the immaturity of DSE, the foreign IPO would dictate the prices of the shares, putting them out of reach for many Tanzanians.

“Will Barrick set different prices for the shares in London and Dar es Salaam? The firm is out to raise capital and I doubt any such considerations are a priority,”said Prof Lipumba, a renowned economist and former university lecturer.

Original date published: 25 February 2010

Source Url: http://allafrica.com/stories/201002250206.html?viewall=1

By Thomas Biesheuvel

Feb. 18 (Bloomberg) — Barrick Gold Corp. plans to create the biggest U.K.-based producer of the metal by spinning off Tanzanian assets and listing them in London next month.

Barrick, the world’s largest gold miner, will be a “significant” investor in African Barrick Gold after selling a stake of at least 25 percent, it said in a statement today.

African Barrick produced 716,000 so-called attributable ounces of gold last year, more than London-based Petropavlovsk Plc, which mines in Russia, and Jersey, Channel Islands-based Randgold Resources Ltd., operating in Mali. Africa made up 10 percent of third-quarter sales at Toronto-based Barrick Gold, which also mines in North and South America, and Australia.

“Maybe they feel these assets are undervalued in their current portfolio and this is a way of achieving a value for them,” Investec Securities mining analyst Jonathan Guy said. “London seems to have a great appetite for African assets.”

Robin Walker, an external spokesman for African Barrick in London, declined to comment on why Barrick Gold is spinning off the assets. The company is planning an investor roadshow that will start around March 5, Barrick Gold’s Chief Executive Officer Aaron Regent said in a call with analysts today.

JPMorgan Cazenove is sole sponsor of the offer. Morgan Stanley Securities Ltd. and JPMorgan are book-runners and Citigroup Inc. is co-book-runner. BMO Capital Markets, Canaccord Adams Ltd., RBC Capital Markets and Scotia Capital are advisers.

Fresnillo Spinoff

“We expect that investors should react positively to the news of the ABG spin-out as the company takes actions to, in effect, shrink to grow from less a risky asset base with a lower cost profile,” Greg Barnes, a Toronto-based analyst at TD Newcrest, wrote today in a note to clients.

Mexico’s Industrias Penoles SAB created U.K.-listed Fresnillo Plc in 2008 to spin off its silver assets. Fresnillo, the world’s largest primary silver producer, has gained 42 percent since its May 2008 listing.

“They see what Penoles achieved by listing a minority of their assets in London and think that looks quite attractive,” said Guy, who follows Randgold, Fresnillo and Petropavlovsk. “There is an appetite for a large listed gold producer in London to add to the existing universe.”

African Barrick has four mines in Tanzania and plans to boost annual output to more than 1 million ounces in four years. Earnings before tax, depreciation and amortization were $249.5 million in 2009 on sales of $693.4 million.

It will use proceeds to repay loans to Barrick Gold. African Barrick has an initial cash balance of about $280 million and a $100 million credit facility with the parent.

Barrick Gold said separately net income was $215 million in the fourth quarter, compared with a loss of $468 million a year earlier. Earnings per share were 21 cents while analysts expected profit of 57 cents, according to the average of 21 estimates in a Bloomberg survey.

–With reporting from Rob Delaney in Toronto. Editors: Simon Casey, Tony Barrett

To contact the reporter on this story: Thomas Biesheuvel in London +44-20-7073-3259 or tbiesheuvel@bloomberg.net

To contact the editor responsible for this story: Simon Casey at +44-20-7673-2631 or scasey4@bloomberg.net

From http://www.businessweek.com

http://www.businessweek.com/news/2010-02-18/barrick-spinoff-to-create-biggest-u-k-gold-miner-update2-.html

Golden, Colorado, February 9, 2010 (LVCA.OB) – Lake Victoria Mining Company is pleased to announce that as of February 8^th, it has successfully executed Addendum’s to the eleven original agreements with 38 property owners for all 37 PMLs (primary mining licenses) in the Singida Gold Project area. This was accomplished through the company’s wholly owned subsidiary in Tanzania. These Addendum Agreements allow the Company to proceed with additional exploration in the area, which includes drilling and the establishment of a pilot processing plant. In addition, the remaining payment schedule has been extended to allow additional time for drilling, assaying and metallurgical test work.

As previously announced, both electrical and magnetic surveying is continuing over the Singida gold bearing vein system, and recent field reports indicate that new northwest-southeast trending and depth extensions to the veins may have been identified.  If this interpretation is confirmed by more detailed data analysis, then additional drill targets will be selected to test for gold in these geological extensions to the previously defined veins.

On February 8^th, 2010 the Company sold 750,000 shares of common stock to Heidi Kalenuik, an officer and director in the Company, in consideration of $150,000 and granted Heidi Kalenuik the right to acquire an additional 750,000 shares of common stock at an exercise price of $1.25 per share.

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 produced 1.75 million troy ounces of gold during 2007 and is the 3rd largest gold producer in Africa behind South Africa and Ghana.

Additional information regarding the Company is available on the corporate website at: www.lakevictoriaminingcompany.com or by contacting:

Lake Victoria Mining Company, Inc.

Dr. Roger A. Newell

Phone: 303 -586-1390

Email: info@lvcamining.com

Disclaimer

This news release may contain forward looking statements, relating to the Company’s operations or the environment in which it operates, which are based on Lake Victoria Mining Company, Inc.’s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or beyond Lake Victoria Mining Company, Inc.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place undue reliance on such forward-looking statements. Lake Victoria Mining Company, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

COMMODITY ONLINE - Published on January 19, 2010 at 18:00

Following is a report from the World Gold Council (WGC) on gold mining and the boom in gold production and various dimensions of mining construcion, production process and how it has helped leading global gold mining companies:

The most recent and thorough analysis of the macroeconomic impacts of large-scale gold production can be found in the life-cycle assessment (LCA) work based on Tanzania, conducted by OPM for the ICMM and by World Gold Council in the spring of 2009.

Capturing a broad array of data across the planned 40-year operating period of large-scale gold mining in the country (1995-2034), the study assessed both historical and forward-looking data from the largest operators in the country, as well as from one exploration-stage company. These companies were World Gold Council members Barrick Gold Corporation, AngloGold Ashanti and IAMGOLD.

The data collected spanned some 120 specific annual metrics – describing various dimensions of the gold mining construction and production process - starting with the beginning of construction of the first mine through to the planned closure of the last. Data inputs included fixed and variable costs of operations, community contributions, capital costs of the mine and ancillary facilities, capital costs of the operation, royalties and taxes paid, and closure costs. Appendix A contains the data collection template.

Since these figures are internal and confidential for each company, World Gold Council appointed the author as sole recipient and aggregator of the company data. Combining data from multiple companies preserved the confidentiality of information since only the aggregated data were provided to the OPM researchers. The aggregated figures were used by OPM in developing its paper for presentation to some 14 different government departments and ministries at the ICMM Workshop on Mining in Tanzania in Dar es Salaam in May of 2009.

This OPM research report − Mining in Tanzania – What Future Can We Expect? − reviewed the findings of the LCA in part against certain past criticisms of Tanzania’s gold industry (principally those contained in a 2008 report, A Golden Opportunity, sponsored by a number of faith groups).

However, before delving into the case of Tanzania specifically, it is useful to review the general pattern of largescale mining’s macroeconomic contributions which emerged from the ICMM’s Resource Endowment initiative and from its study of the four cases mentioned in the previous section. Figure 1 below summarizes this pattern schematically.

OPM summarized the key conclusions at each level of the inverted pyramid in Figure 1 which, starting with the most important, are:

1. Mining can be the main source of a country’s foreign direct investment. When this is the case (as it is in Tanzania) the volume of domestic investment is also likely to be significantly increased.

2. Mining can become a major source of foreign exchange by generating new exports, which can quickly overtake traditional exports in this role.

3. Mining often contributes a share of government revenues that is high relative to its share of GDP, since it is a highly visible and therefore an easily taxed activity compared with many traditional activities such as agriculture, small-scale manufacturing and artisanal mining.

4. Modern, large-scale mining is unlikely to contribute a large proportion of Gross Domestic Product (GDP) due to its highly capital-intensive nature. Its contribution to a country’s Gross National Income (GNI) is likely to be even smaller still due to the outflows of mining company dividends and interest on debt that represent part of the difference between GDP and GNI.

5. Modern mining cannot be expected to make a massive contribution to local employment levels. This is mainly due, again, to the capitalintensive nature of the industry and less because of the choices between expatriate and local employment, as is often asserted.

As with the countries profiled in the previous Resource Endowment case studies, Tanzania has witnessed an explosion of mining sector activity since economic liberalization measures – in general and for mining in particular were put in place in the mid-1990s and then gathered momentum. In Tanzania this trend began in 1986 with the Economic Recovery Programme, and then accelerated after 1995. As with many of the REI case study countries, this reform was characterized by greater private sector participation in the country and particularly by a more welcoming environment for foreign investment.

Mining specifically has benefited from the multiple reforms to Tanzania’s mining laws introduced since 1997, including financial legislation, a new Mining Law and relevant changes to the Foreign Exchange Act. As the OPM report shows, the growth of large-scale gold mining has responded rapidly to these developments. According to the Tanzania Chamber of Mines, contracts for six major new gold mines have been put in place since 1994:

Barrick’s Bulyanhulu in Kahama, (operations began in 2001)

Barrick’s Buzwagi in Kahama, (operations began in 2009).

The OPM report first of all considered the contributions of large-scale gold production thus far in Tanzania, based on data from domestic and international authorities such as the Tanzanian Department of Mines and other government agencies, and the UNCTAD World Investment Report, among others. Then the results of the LCA were considered in an attempt to anticipate the likely future levels of activity and the significance of these to Tanzania’s economic future and its involvement in gold mining.
.In line with the ‘inverted pyramid’ of mining’s macroeconomic benefits, Tanzania’s principal benefit from this large increase in gold production has been FDI. In the past decade, Tanzania The Golden Building Block Section 4 has seen a tremendous increase in FDI receipts.

UNCTAD data shows Tanzania in the upper-middle ranking of African countries in terms of FDI, with its FDI stock rising from US$2.78 billion in 2000 to US$5.94 billion in 2007. As OPM points out, in the early 1990s Tanzania would have appeared at the bottom of this ranking.

With the exception of South Africa, all of the currently higher-ranked countries are oil and gas exporters. How has Tanzania done this? The LCA data indicate that gold mining overwhelmingly dominates the surge in FDI, accounting for more than US$2 billion, nearly two-thirds, of this increase. Over the three years until 2007, Tanzania attracted more than double the FDI of its neighbor Kenya, traditionally a strong FDI-attracting nation.

The second major difference in Tanzania’s economy accompanying the recent growth of gold production is the marked transformation of its export sector. Since well before its independence in 1961, Tanzania’s exports were dominated by agricultural products – primarily coffee, but also tea, cashews, tobacco and sisal. This pattern continued through to 1999, since when gold exports have steadily grown to dwarf even the combined totals of the traditional exports (see Figure 2).

In fact, as OPM notes, between 1999 and 2008, traditional crop exports grew by approximately 4% on an annual basis, while non-traditional exports such as mined products and manufactured goods grew by 31% per annum. Within the non-traditional sector, gold exports alone have outpaced all other manufactured goods by eight to one in the peak of 2004, and still do so by a factor of two to one.

Without the recent earnings from gold mining, Tanzania would be foregoing some US$750 million per year in foreign exchange earnings – comparable to significantly more than the total annual aid flows to Tanzania in any year prior to 2006, and higher than the value of HIPC debt relief in most years. It is also 700% higher than the earnings from Tanzania’s main traditional export of coffee in recent years.

Golden, Colorado, January 7th, 2010 (OTCBB:LVCA) - Lake Victoria Mining Company is pleased to report the progress of an electrical induced polarization (IP) survey over the five kilometer long vein system at the Singida gold project. Gradient surveying, within the first block, has identified a well defined northwest-southeast trending anomaly that closely corresponds to a previously reported magnetic anomaly and to artisanal mine shaft locations. Detailed dipole-dipole surveying is underway within the first block and drill hole locations will be based on compilation of all technical information.  

The Singida gold project covers about 11 square kilometers and consists of 54 Primary Mining Licenses.  The project area is the location of active artisanal gold mining; the I.P. program consists of both reconnaissance or gradient I.P. measurements and detailed dipole-dipole measurements.  The purpose of the I.P. program is to define drill sites along the five kilometer long vein system.

Four blocks are being surveyed over the five kilometer long system; as planned, the survey will total about 60 line kilometers of electrical measurements.  Each survey block consists of eight north-south survey lines that are one kilometer long and they are spaced 200 meters apart. One-hundred meter line spacing is planned over locations of active mining. The program commenced in December and will be completed in about three months.

Roger Newell president of Lake Victoria said “These are encouraging I.P. results, and it is exciting to have the Singida project in our company, and we are close to defining specific drill targets.”

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 produced 1.75 million troy ounces of gold during 2007 and is the 3rd largest gold producer in Africa behind South Africa and Ghana.

Additional information regarding the Company is available on the corporate website at: www.lakevictoriaminingcompany.com or by contacting:

Lake Victoria Mining Company, Inc.

Dr. Roger A. Newell

Phone: 303-586-1390

Email: info@lvcamining.com

Disclaimer

This news release may contain forward looking statements, relating to the Company’s operations or the environment in which it operates, which are based on Lake Victoria Mining Company, Inc.’s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or beyond Lake Victoria Mining Company, Inc.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place undue reliance on such forward-looking statements. Lake Victoria Mining Company, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Golden, Colorado, January 6, 2010 (OTCBB:LVCA) – Lake Victoria Mining Company is pleased to provide a summary of recent corporate development activities.

• Regarding on-going fund raising, as of December 31^st, 2009 we sold 2,701,001 Units, and we received $1,620,600. Each unit consists of one share of common stock and one redeemable warrant.

• The Corporate website is being updated to reflect all current projects and exploration activities. 

• The Company purchased state-of-the-art electrical geophysical induced polarization (I.P.) equipment.  This equipment is currently in use at our Singida Gold Project.

• Roger Newell, our president accepted a board of director’s position with Midway Gold Corporation, whose common stock is traded on the American Stock Exchange and the TSX Venture Exchange.  There are no business relationships between Lake Victoria and Midway Gold.

Roger Newell, president of Lake Victoria Mining stated: “We continue to advance the company’s goal and I encourage all shareholders to visit our corporate website regularly where you can register for free investor updates to keep informed of our ongoing progress”.

About the Company

Lake Victoria Mining Company, Inc. along with its wholly owned subsidiary, Kilimanjaro Mining Company Inc. (www.kilimanjarominingcompany.com) is working to create another gold mine in the world famous Lake Victoria Greenstone Belt, Tanzania, East Africa. Tanzania produced 1.75 million troy ounces of gold during 2007 and is the 3rd largest gold producer in Africa behind South Africa and Ghana.

Additional information regarding the Company is available on the corporate website at: www.lakevictoriaminingcompany.com or by contacting:

Lake Victoria Mining Company, Inc.

Dr. Roger A. Newell

Phone: 303 -586-1390

Email: info@lvcamining.com

Disclaimer

This news release may contain forward looking statements, relating to the Company’s operations or the environment in which it operates, which are based on Lake Victoria Mining Company, Inc.’s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or beyond Lake Victoria Mining Company, Inc.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place undue reliance on such forward-looking statements. Lake Victoria Mining Company, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise

Golden, Colorado  December 3, 2009 (LVCA:OTCBB) – Lake Victoria Mining Company is pleased to report the acquisition of its own Induced Polarization (I.P.) electrical geophysical prospecting system that will initially be used to target drill holes at the Company’s Singida gold project in central Tanzania. 

At Singida, geologic mapping, underground sampling, trenching and detailed ground based magnetic surveys have defined a five kilometer long gold bearing quartz vein system. The Company is currently field surveying and clearing grid lines for conducting electrical I.P. surveys along this five kilometer mineralized trend. 

I.P. surveys, by measuring the response from energizing the ground with high energy pulsating electrical forces, can locate at depth the mineralized centers and metal rich source areas which produced the gold veins observed in surface exposures.  Locating the source areas and the geologic structures which controlled the near surface vein deposits will allow drill holes to be strategically placed along the five kilometer trend. The objective of the I.P. surveys is to locate drill targets and the objective of drilling is to rigorously define gold resources and reserves that are capable of supporting an economic mining operation.  

Roger Newell, president of Lake Victoria said: “Having our own I.P. equipment will allow us to plan and execute our own surveys in a timely fashion. Last year we purchased our own state-of-the-art ground magnetic equipment; now having both geophysical systems will allow us to conduct ground magnetic and electrical surveys quickly and accurately and shorten the time to begin drilling.  The sooner we can drill, the sooner we can advance the project towards engineering studies and production.”

Additionally, on November 9^th the Company formed Lake Victoria Resources (T) Ltd., as a wholly owned subsidiary in Tanzania, to perform exploration and mining activities on all of its mineral properties. Lake Victoria Resources has begun to employ a complete administrative, management, geological and geophysics staff to conduct activities within Tanzania.

About the Company

Lake Victoria Mining Company, Inc. along with its wholly owned subsidiary, Kilimanjaro Mining Company Inc. (www.kilimanjarominingcompany.com) is working to create another gold mine in the world famous Lake Victoria Greenstone Belt, Tanzania, East Africa. Tanzania produced 1.75 million troy ounces of gold during 2007 and is the 3rd largest gold producer in Africa behind South Africa and Ghana.

Additional information regarding the Company is available on the corporate website at: www.lakevictoriaminingcompany.com or by contacting:

Lake Victoria Mining Company, Inc.

Dr. Roger A. Newell

Phone: 303 -586-1390

Email: info@lvcamining.com

Disclaimer

This news release may contain forward looking statements, relating to the Company’s operations or the environment in which it operates, which are based on Lake Victoria Mining Company, Inc.’s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or beyond Lake Victoria Mining Company, Inc.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place undue reliance on such forward-looking statements. Lake Victoria Mining Company, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Golden, Colorado, December 1, 2009 (OTCBB:LVCA) – Three new parallel gold veins have been identified with positive assay results, and Lake Victoria has begun completion of property acquisition at the Singida Gold Project.

During the week of November 16th, the Company, in agreement with one of its Tanzanian directors, completed acquisition of 21 Primary Mining Licenses, which represent approximately one third of the entire 5 kilometer gold bearing project area.  These property acquisitions come on the heels of identifying a number of new parallel gold veins.

A total of 13 trenches have been excavated across vein structures at the Company’s Singida gold project. Preliminary information from five trenches indicates that there may be three new gold bearing veins in addition to the main vein structure; the vein closest to the main vein appears to lie about 20 meters to the northeast of the main vein. These new veins, in near surface trenches, appear to be similar in character to the near surface character of the main vein, which we have sampled at depths of up to 50 meters in 36 existing small scale mine shafts. The vein system trends northwest-southeast, and the new veins are located on the northeast side of this main 5 kilometer long vein of which underground samples averaged a gold grade of 7.1 grams per ton, as previously announced (http://lakevictoriaminingcompany.com/investors/news/2009/8-6.htm)

Roger Newell, president of Lake Victoria said: “Based on the fact that all of our exploration to date in the Singida Gold Project has yielded extremely positive results and given that our original target is now expanding, the Company’s confidence in the commercial potential of Singida is very high. Accordingly, we have begun completing acquisition of the Primary Mining Licenses that comprise the gold bearing target area. The three new veins that have been identified appear to have a similar character as the nearby main vein system, which we already know carries important gold values at depth throughout the 5 kilometer strike. With the price of gold approaching $1,200 we are on an accelerated pace to prove up gold mineralization and to advance the project towards a production decision.”

About the Company

Lake Victoria Mining Company, Inc. along with its wholly owned subsidiary, Kilimanjaro Mining Company Inc. (www.kilimanjarominingcompany.com) is working to create another gold mine in the world famous Lake Victoria Greenstone Belt, Tanzania, East Africa. Tanzania produced 1.75 million troy ounces of gold during 2007 and is the 3rd largest gold producer in Africa behind South Africa and Ghana.

Additional information regarding the Company is available on the corporate website at: www.lakevictoriaminingcompany.com or by contacting:

Lake Victoria Mining Company, Inc.

Dr. Roger A. Newell

Phone: 303 -586-1390

Email: info@lvcamining.com

As a contra to the dollar the outlook for the yellow metal remains strong

Author: Geoff Candy
Posted:  Monday , 23 Nov 2009

JOHANNESBURG - 

The poor outlook for the dollar continues to provide good prospects for the price of gold.

According to Jim Sinclair, chairman at Tanzanian Royalty Exploration, the price of the yellow metal could reach as high as $1650 by the end of 2010 and moving into the beginning of 2011. But, the man admits that, given recent happenings, this could be a bit of a low estimate.

“My thesis is that gold is a contra to the US dollar and recent statements out of the Federal Reserve that interest rates will remain extremely low until 2012 is really a go ahead single for gold to continue to perform as it has until at least 2012.

Speaking to Mineweb Radio, Sinclair explained his reasoning: “If you look at the way US foreign debt is just about touching $3 trillion and our economy is not responding as China has, we have very serious systemic problems that have resulted in high levels of unemployment and I can’t buy on to a new normal economic recovery devoid of hiring people.”

He adds that the US is now beginning to apply fiscal stimulus, which has “a habit of sucking inflation out of monetary expansion”.

“I do think we are going to see the currency influenced inflation event that is hard for people to understand given the in a difficult conditions in the job market and with the only booming business being Wall street.”

Given his view of gold’s relationship to the dollar, Sinclair was asked about the dollar’s continued status as the reserve currency.

“We can clearly see the dollar is no longer the universal reserve currency it was back in 2000; currency values come from momentum so you don’t need heavy selling of a currency for it to decline you just need less buying.

” I would think that the dollar will always be around at whatever value the market makes for it and it will always be part of reserves but it won’t be the universal reserve currency. You have a super sovereign currency unit, which is really like the dollar index that will be part and parcel of the IMF which I believe is becoming the central bank.”

He adds that, national strength and influence socially and politically has always followed the strength of currencies and it is very clear Wall Street is no longer the financial centre of the world, Asia is rising very sharply and nations that can produce gold at reasonable prices will find out that they are actually mining money.