Perseus Mining has confirmed its decision to advance the development of the Nyanzaga Gold Project in Tanzania, following an updated feasibility study.
The company plans to invest approximately $523m to establish and operate the mine, which is anticipated to begin gold production in Q1 2027.
The financing for the project will be sourced entirely from Perseus’s existing cash reserves and bullion, totalling $801m as of the end of March 2025.
As part of preparations for this development, Perseus has already allocated around $27.5m towards assembling the project team and initiating preliminary works. These include site preparation, setting up temporary construction accommodations, and conducting bulk earthworks, among others.
The updated feasibility study reflects input from extensive technical evaluations by Perseus’s team. The decision was made to adopt a large-scale, open-pit mining operation for the first phase, diverging from a previously considered mixed open-pit and underground approach.
The project foresees a total gold production of 2.01 million ounces over an 11-year period, with an average annual output exceeding 200,000 ounces from 2028 to 2035. The peak production is expected to reach 246,000 ounces in 2028.
The average all-in site cost over the mine’s lifespan is estimated at $1,211 per ounce.
Key investment metrics assume a long-term gold price of $2,100 per ounce. At this price, the project is expected to generate an undiscounted free cash flow of $1.1bn pre-tax and $706m post-tax.
The net present value (NPV) at a 10% discount rate is projected at $404m pre-tax and $202m post-tax. The internal rate of return (IRR) stands at 26% pre-tax and 19% post-tax.
Perseus operates three gold mines in Africa, which include Edikan, Sissingué, and Yaouré, the latter of which was completed ahead of schedule and below budget in 2020.
The decision on Nyanzaga Gold Project follows positive discussions with Tanzanian authorities to clarify the terms of an existing Framework Agreement and a shareholder’s agreement between the government and the company.
Perseus owns an 80% interest in the project, with the Tanzanian government holding a 20% non-contributing stake.
Currently, a second phase of resource definition drilling is in progress at Nyanzaga, aiming to upgrade Inferred Mineral Resources to Indicated Mineral Resources. This could potentially expand the Ore Reserve and extend the mine’s life beyond the projected 11 years.
The Nyanzaga Gold Project is situated in north-western Tanzania, in the Sengerema District, approximately 60km southwest of Mwanza, within the Lake Victoria Goldfield.
