VANCOUVER, British Columbia — As global gold mines age and production forecasts dim, developers in Africa are emerging as key players in sustaining the industry's output, with Tanzania drawing significant investment amid rising demand from central banks. According to the World Gold Council, central banks are expected to purchase around 850 tonnes of gold in 2026, matching the previous year's elevated levels and supporting firm prices for projects already advancing toward production. This comes as major producers anticipate declines in output next year, with old reserves depleting faster than new ones can be developed, creating opportunities for funded explorers in resource-rich regions like Africa.
Tanzania has become a focal point, attracting $9.79 billion in mining investments in 2024, which accounted for nearly three-quarters of foreign capital in key sectors. Companies such as Lake Victoria Gold Ltd., TRX Gold, Gold Fields, Montage Gold, and Galiano Gold are positioning themselves to capitalize on this trend. Lake Victoria Gold, trading on the TSX Venture Exchange under LVG and OTCQB as LVGLF, recently secured a binding term sheet for a gold loan facility of up to $25 million from Monetary Metals, backed by up to 6,000 ounces of gold. The company also closed a $3 million convertible debenture led by a major shareholder, providing immediate working capital for its projects in Tanzania.
The gold loan is structured as non-dilutive financing, with repayment in gold ounces rather than cash, allowing it to scale with production. The convertible debenture features a 5% annual interest rate, conversion at $0.31 per share, and includes half-warrants exercisable at $0.40. "This financing allows us to immediately accelerate work programs on the ground at Imwelo and advance key initiatives across both Imwelo and Tembo without delay," said Marc Cernovitch, CEO of Lake Victoria Gold. He added, "With capital now in place, our focus is on execution, progressing engineering, advancing site activities, and moving Imwelo toward development. At the same time, the Monetary Metals facility provides a clear pathway to larger-scale project financing, supporting our objective of bringing Imwelo into production."
Lake Victoria Gold's Tanzanian portfolio includes the Imwelo Gold Project and the Tembo project, in which the company holds a 100% interest. The Tanzanian government has announced it is incorporating its statutory 16% free carried interest in the Tembo mining licenses, a step that indicates regulatory progress. Additionally, the company is finalizing a binding agreement with Nyati Resources, a local mining operator, to initiate toll milling at Tembo. This arrangement would enable early cash flow by processing material at an existing facility, avoiding substantial upfront capital costs.
At the Imwelo project, recent metallurgical testing has shown gold recovery rates of up to 97% using conventional methods. A completed drill program at Area C intersected grades including 11.88 grams per tonne over 1.33 meters. Geotechnical studies support a consolidated single open pit design. For Tembo, surface sampling has yielded grades up to 35.45 grams per tonne. The company counts Barrick Gold as a strategic investor, and its management, directors, and strategic partners collectively own more than 60% of the outstanding shares.
Elsewhere in Tanzania, TRX Gold, listed on the NYSE American as TRX and TSX as TRX, reported strong metallurgical results and an expanded scope for its Buckreef Gold Project processing plant. The updates go beyond the preliminary economic assessment from May 2025. "The continued positive metallurgical results and recently improved recovery rates at our operations have provided us with a much better understanding of the deposit," said Stephen Mullowney, CEO of TRX Gold. He noted, "This combined with the ability to develop a much larger processing plant alongside anticipated higher gold prices going forward, has led us to significantly increase the scope of the Buckreef Gold expansion."
Test work at Buckreef showed recovery rates of 89% to 92%, surpassing the 88% assumed in the PEA. As a result, TRX Gold plans a SAG/ball mill combination with capacity exceeding 3,500 tonnes per day, up from the PEA's 3,000 tonnes per day. The existing 2,000 tonnes per day plant will operate in parallel after upgrades slated for completion in the fourth quarter of 2026. An updated PEA incorporating the higher capacity is anticipated in the same quarter.
In Ghana, Gold Fields, trading as GFI on the NYSE, reaffirmed its commitment to the country while updating on the transition of its Damang mine. The transfer of ownership to the Ghanaian government is scheduled for April 18, 2026. "Gold Fields has had the privilege of operating in Ghana for more than 30 years and we are proud of the partnerships that we have built with the Government of Ghana and our host communities over that time," said Mike Fraser, CEO of Gold Fields. He continued, "We remain committed to contributing to Ghana’s mining sector and to maintaining solid relationships with our stakeholders, and look forward to continuing our long-standing presence and impact in the country for many years to come."
Gold Fields has invested about $5 billion in the Damang and Tarkwa mines since 2000, contributing $2.9 billion to Ghana in taxes, royalties, and dividends. Mining at Damang resumed in May 2025 after a 12-month lease extension, and a detailed feasibility study was delivered to the government in December 2025. The company's operations in Ghana employ over 7,000 people, 99% of whom are Ghanaian nationals.
Montage Gold, listed on the TSX as MAU and OTCQX as MAUTF, provided an update on its Koné Project in Côte d’Ivoire, including a revised mineral resource estimate for the Koné and Gbongogo Main deposits. Construction remains on budget and ahead of schedule, with the first gold pour expected in late fourth quarter 2026 through the oxide circuit. "We are pleased with our continued progress to unlock exploration value at the Koné project, where construction remains on-budget and ahead of schedule with the first gold pour expected in late Q4-2026 through the oxide circuit," said Martino De Ciccio, CEO of Montage Gold. "The updated Mineral Resource Estimate further enhances the quality of the project."
The updated estimate shows Measured and Indicated resources at Koné increasing by 142,000 ounces to 4.63 million ounces at 0.69 grams per tonne, a 21% grade improvement. Gbongogo Main's Indicated resources rose by 223,000 ounces to 783,000 ounces at 1.51 grams per tonne. Overall, the Koné project's Measured and Indicated total grew by 671,000 ounces to 5.88 million ounces at 0.77 grams per tonne. A 56,000-meter grade control program, covering the first 18 months of production, has been completed to reduce ramp-up risks.
Galiano Gold, trading as GAU on the NYSE American and TSX, announced a mineral reserve update for its Asanko Gold Mine in Ghana, featuring maiden underground resources at the Nkran and Abore deposits. Indicated resources total 3.4 million tonnes at 2.74 grams per tonne for 303,000 ounces, while Inferred resources are 6.5 million tonnes at 2.52 grams per tonne for 525,000 ounces. Proven and Probable reserves stand at 47.5 million tonnes at 1.29 grams per tonne for 1.97 million ounces.
"The maiden underground Mineral Resources at Nkran and Abore represent a new and meaningful growth avenue for Galiano, marking a clear inflection point for the Company," said Matt Badylak, President and CEO of Galiano Gold. "With significant potential to expand resources at depth and along strike, we see a compelling opportunity to extend mine life, further convert resources into reserves, and unlock long term value." Mill throughput is projected to increase by about 15% in fiscal year 2026, supporting a 25% production rise from 2025, with Nkran expected to push annual output above 200,000 ounces by early 2029. Galiano aims to add 1.0 to 1.5 million ounces to its combined resources and reserves over the next two to three years.
The broader context underscores a structural shift in the gold sector, where majors like BHP are conducting exploration workshops in Zambia, South Africa, Namibia, and Angola, affirming Africa's role in near-term production growth. However, challenges remain, including regulatory hurdles and the need for feasibility studies. For instance, Lake Victoria Gold has not completed a feasibility study for Tembo that establishes mineral reserves, introducing uncertainty and higher risks in advancing toward production through toll milling or other arrangements.
Analysts point to sustained central bank buying and geopolitical tensions as factors keeping gold prices elevated, potentially benefiting these African developers. As projects like Imwelo, Buckreef, Koné, and Asanko progress, they could help offset global declines, though investors are cautioned that production decisions carry risks such as variations in grades, recoveries, and funding availability. With funding secured and milestones achieved, these companies are poised to contribute to Africa's growing prominence in the gold market.