The Nyanzaga Gold Project is a large open pit gold mine located in the Lake Victoria goldfields of northwestern Tanzania, and developer Perseus Mining now reports construction about halfway complete with close to US$250 million spent, holding the US$523 million build on track for first gold in January 2027.
Nyanzaga Gold Project Reserve Climbs to Four Million Ounces
A revised estimate completed in February 2026 lifted Nyanzaga’s ore reserve to 4.0 million ounces and stretched mine life to 16 years, while more than 3,600 workers are now on site. The momentum mirrors a wider African gold build out, including Toubani Resources’ Kobada Gold Mine in Mali, which is chasing first gold later in 2027.
Project Overview
- Project Name: Nyanzaga Gold Project (NGP)
- Location: Sengerema District, Mwanza Region, northwestern Tanzania, about 60 km southwest of Mwanza
- Project Value: About US$523 million capital to first gold, per Perseus Mining
- Client and Owner: Sotta Mining Corporation, held 80 percent by Perseus Mining and 20 percent by the Government of Tanzania
- EPCM Contractor: Lycopodium, delivering the 5 million tonne per year carbon in leach processing plant
- Ore Reserve: 4.0 million ounces, per the revised February 2026 estimate
- Planned Production: Average above 200,000 ounces a year, peaking near 246,000 ounces in 2028
- Mine Life: 16 years
- Construction Progress: About 50 percent complete, with roughly US$250 million invested by mid 2026
- Expected First Gold: January 2027
Project Team
- Owner and Operator: Sotta Mining Corporation
- Majority Owner and Developer: Perseus Mining (80 percent)
- Government Partner: Government of Tanzania (20 percent)
- EPCM Contractor: Lycopodium
- Power Supply: Tanzania Electric Supply Company (TANESCO)
- Mining Contractor: Not yet publicly named
Reported 29th April 2025: 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).
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.
Also read: Tanzania’s Kwala Dry Port Completion Expected to Ease Dar es Salaam’s Lorry Gridlock
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.
Also read: Three New Natural Gas Wells Set for Drilling in Tanzania’s Mwanza Bay Gas Field
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.
Also read: Tanzania-DRC Dry Port Construction Deal Signed
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.
Also read: China to Provide $1.4 Billion for Tanzania-Zambia Railway Rehabilitation
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