Perseus Mining announced that a Final Investment Decision (FID) has been made to develop the Nyanzaga gold project (NGP) in Tanzania, following the update of the NGP feasibility study (FS).
The company has committed to invest approximately $523 million (including contingency) to develop and prepare for the operation of the mine that is expected to produce first gold in Q1 2027. NGP development will be solely financed via interest free, intercompany loans provided by Perseus from its existing cash and bullion balance of $801 million.
In anticipation of an affirmative FID, Perseus said it spent approximately $27.5 million to date to build project team capacity and commence early works that include site establishment, installation of temporary construction accommodation, and bulk earthworks as well as implementing a relocation plan to construct new dwellings for people impacted by future construction and operating activities.
Perseus has opted for a large scale, wholly open-pit mining operation, for the first phase of development, in preference to a smaller scale, combined open pit/underground option contemplated by the previous owners.
Total gold production over the 11-year, Phase 1 mine life is currently estimated to be 2.01 million oz based on reserves of 52 million mt grading at 1.40 g/mt gold for 2.3 million oz. Gold production will average more than 200,000 oz/y from FY28 to FY35, with peak production of 246,000 oz/y in FY28. The estimated average all-in sustaining cost is $1,211/oz for the mine’s life.
Capital cost for the plant and site infrastructure is estimated at $472 million inclusive of $49 million of contingency, and pre-production capital of $51 million, giving a total capital cost to first gold pour of $523 million.
Perseus has previously successfully developed, and is now operating three gold mines including Edikan, Sissingu , and most recently, the Yaour gold mine that was delivered ahead of schedule and under budget in 2020, using much of the same team that will be deployed on the NGP development. The company said the FID also comes following constructive engagement with the government of Tanzania.
“Perseus is very excited by its decision to proceed with the development of the Nyanzaga and is looking forward to working alongside the government of Tanzania to deliver a world-class mining operation,” said Perseus Managing Director and CEO Jeff Quartermaine. “Acquired in May 2024 through the successful takeover of OreCorp Ltd., the Nyanzaga gold project will be the first major gold mine development in Tanzania in 17 years and represents a major step forward in terms of enhancing Tanzania’s reputation as a favorable destination for foreign investment.”
The equipment spread for the mine will likely be 180- to 350-mt hydraulic excavators matched with 90- to 150-mt haul trucks. Over the life of the NGP, they will move 52 million mt of ore and 298 million mt of waste. Total material movement is forecast to peak during the period FY28 to FY32.
NGP will use a conventional gold processing system that includes single-
stage gyratory crushing; SAG milling with pebble recycle and ball milling in closed circuit with hydrocyclones; gravity gold recovery; pre-oxidation/cyanide-in-leach (CIL) to leach and adsorb precious metals from the milled ore to activated carbon; split AARL elution, electrowinning and smelting to recover precious metals from loaded activated carbon to dore; and SO2/air detoxification of CIL tailings before pumping and deposition to the tailings storage facility (TSF).
Power will be supplied from the national grid at the Bulyanhulu substation and delivered via a new 53-km-long, 220-kV transmission line.
Raw water for the site will be predominantly extracted from nearby Lake Victoria, with the water balance indicating a flow rate of 50-350 m3/h is required once the TSF decant return water supply becomes available. Raw water supply will be supplemented by groundwater extracted from dedicated boreholes. Process water will be predominantly supplied by water recovered from the TSF decant.
