The African-focused gold company Perseus Mining has made a final investment decision (FID) to develop the Nyanzaga Gold Project (NGP) in Tanzania. Furthermore, this development will be facilitated with an investment of approximately $523m (A$817.08m).
The updated feasibility study for the Nyanzaga Gold Project, includes insights and recommendations derived from technical assessments conducted by Perseus’ technical team and has led to the FID.
Nyanzaga Gold Project Factsheet
Location: It is approximately 60 kilometers southwest of Mwanza and about 7 kilometers southeast of Ngoma.
Ownership: The Nyanzaga Gold Project is owned through a joint venture company, Sotta Mining Corporation Limited. The ownership structure is:
- Perseus Mining Limited: 80% contributing interest. Perseus Mining acquired the project in May 2024 through the takeover of OreCorp Limited.
- Government of Tanzania: 20% non-contributing interest, as mandated by Tanzanian mining regulations for major projects.
Investment: Perseus Mining has committed approximately US$523 million (including contingency) for the development of the mine. This investment will be financed through interest-free intercompany loans from Perseus’ existing cash and bullion reserves.
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Mining operations: The initial phase of development will involve a large-scale, wholly open-pit mining operation, focusing on the Nyanzaga (Tusker) and Kilimani deposits.
Production: First gold production is anticipated in the first quarter of 2027. The project is expected to produce a total of 2.01 million ounces of gold over an initial 11-year mine life. Also, the average annual gold production is projected to exceed 200,000 ounces from 2028 to 2035, with a peak production of 246,000 ounces expected in 2028.
Infrastructure:
- Access: the project is accessible from Mwanza via the sealed Mwanza – Geita Highway. An unsealed road bypassing Ngoma township is under construction to reach the site.
- Power: power will be supplied from the Tanzania Electric Supply Company Limited (TANESCO) national grid via a new 53 km long 220 kV transmission line from the Bulyanhulu substation. Standby generators will also be installed.
- Water: raw water will be primarily sourced from Lake Victoria.
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Capacity of Nyanzaga Gold Project
The NGP will be a large-scale, open-pit mining operation with estimated total gold production of 2.01 million ounces (moz) over an 11-year phase one mine life. The average all-in site cost is projected to be $1,211/oz.
Production Commencement Date
The mine is expected to begin gold production in the first quarter of 2027 (Q1 2027).
The development of the mining project will be financed through interest-free loans from Perseus’ existing cash reserves. These cash reserves stand at $801m as of 31 March 22025.
As for now, Perseus has invested approximately $27.5m so far to strengthen the project team and initiate early works.
Additionally, these efforts on the mine’s development include site establishment, setting up temporary construction accommodations, conducting bulk earthworks, and executing the relocation action plan to build new homes for those affected by upcoming construction and operational activities.
Also, Perseus’ investment in the NGP is underpinned by strong financial metrics. This is inclusive of an estimated pre-tax net present value (NPV 10%) of $404m and an internal rate of return of 26%. These figures are drawn from a long-term assumed gold price of $2,100/oz.
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Furthermore, NGP’s capital costs are estimated at $472m. This includes a $49m contingency, with an additional $51m in pre-production capital.
Perseus Portfolio in Africa
Perseus has a track record of successfully developing and operating gold mines in Africa, including the Edikan, Sissingué and Yaouré mines.
Additionally, the managing director and CEO of Perseus, Jeff Quartermaine said: “Perseus is very excited by its decision to proceed with the development of the Nyanzaga Gold Project and is looking forward to working alongside the Government of Tanzania to deliver a world class mining operation.
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