Perseus Mining Advances Nyanzaga Gold Project in Tanzania

Perseus Mining Advances Nyanzaga Gold Project in Tanzania

Perseus Mining has confirmed that it will move forward with the Nyanzaga Gold Project in Tanzania. The company will invest $523 million to establish and operate the mine. Gold production is expected to begin in Q1 2027.

$523 Million Investment to Develop Nyanzaga Gold Project

Perseus Mining will fund the project using its existing cash reserves and bullion, which total $801 million as of March 2025. Additionally, the company has already allocated $27.5 million to start early work, including site preparation, temporary construction accommodations, and bulk earthworks.

The updated feasibility study reveals a shift in the mining strategy. Specifically, Perseus has opted for large-scale, open-pit mining for the first phase, which replaces the mixed open-pit and underground method that was initially considered. This change follows extensive technical evaluations by the company’s team, which further confirmed the shift as the best approach.

Production Forecast and Financial Outlook

The Nyanzaga Gold Project will produce 2.01 million ounces of gold over 11 years. The mine will generate an average annual output of 200,000 ounces from 2028 to 2035. Peak production is expected to reach 246,000 ounces in 2028. The average all-in site cost for the mine’s life is estimated at $1,211 per ounce.

Perseus based its financial forecasts on a long-term gold price of $2,100 per ounce. The project will generate $1.1 billion in pre-tax free cash flow and $706 million post-tax. The net present value (NPV) at a 10% discount rate is projected to be $404 million pre-tax and $202 million post-tax. The internal rate of return (IRR) stands at 26% pre-tax and 19% post-tax.

Partnership with Tanzanian Government

Perseus Mining owns 80% of the Nyanzaga Gold Project. The Tanzanian government holds a 20% non-contributing stake. Perseus decided to move forward after productive discussions with Tanzanian authorities clarified the terms of an existing Framework Agreement and shareholder’s agreement.

Currently, Perseus is conducting the second phase of resource definition drilling at Nyanzaga. This drilling will upgrade Inferred Mineral Resources to Indicated Mineral Resources. It may expand the Ore Reserve and extend the mine’s lifespan beyond the projected 11 years.

Strategic Location and Future Outlook

The Nyanzaga Gold Project is located in the Sengerema District of north-western Tanzania. It is about 60 km southwest of Mwanza, within the Lake Victoria Goldfield. Perseus’s strong track record in Africa, combined with Nyanzaga’s promising outlook, positions the project as a key contributor to the company’s future growth.