Perseus Mining, an African-focused gold mining firm, has taken a final investment decision (FID) to develop Tanzania’s Nyanzaga Gold Project (NGP) for an estimated IJS$523 million (A$817.08 million). The updated feasibility study for the NGP, which includes insights and recommendations based on technical studies done by Perseus’ technical team, has produced the FID. Perseus owns 80% of the NGP, with the government of Tanzania owning the other 20%. The NGP will be a large-scale open-pit mining operation with an estimated total gold production of 2.01 million ounces (moz) over a two-year phase one mine life. The average all-in site cost is estimated to be $1,211/oz. The mine is expected to begin producing gold in the first quarter of 2027 (QI 2027). The development will be funded by interest-free loans from Perseus’ existing funds. Perseus has spent around $27.5 million to bolster the project team and begin early work. These initiatives include site preparation, temporary construction accommodations, bulk earthworks, and carrying out the relocation action plan to create new dwellings for persons displaced by forthcoming construction and operational activities.
Perseus’ investment in the NGP is backed by excellent financial metrics, including an estimated pre-tax net present value (NPV 10%) of $404 million and a 26% internal rate of return. Perseus’ investment in the NGP is supported by strong financial measures, such as a pre-tax net present value (NPV 10%) of $404 million and a 26% internal rate of return. The NGP’s investment costs are anticipated at $472 million, including a $49 million contingency, plus an extra $51 million in pre-production capital. Perseus has successfully developed and operated gold mines in Africa, including the Edikan, Sissingue, and Yaoure mines. Perseus Managing Director and CEO Jeff Quartermaine stated, Perseus is very thrilled about its decision to carry on with the development of the Nyanzaga Gold Project and looks forward to partnering with the Tanzanian government to deliver a world-class mining operation. The Nyanzaga Gold Project will be Tanzania’s first major gold mine development in 17 years, and it marks a significant step forward in terms of improving Tanzania’s reputation as a desirable destination for foreign investment.
