African-focused gold company Perseus Mining has made a final investment decision (FID) to develop the Nyanzaga Gold Project (NGP) in Tanzania with an investment of approximately $523m (A$817.08m).
The updated feasibility study for the NGP, which includes insights and recommendations derived from technical assessments conducted by Perseus’ technical team, has led to the FID.
Perseus holds an 80% contributing interest in the NGP alongside the Government of Tanzania, which holds a 20% non-contributing interest.
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.
The mine is slated to begin gold production in the first quarter of 2027 (Q1 2027).
The development will be financed through interest-free loans from Perseus’ existing cash reserves, which stood at $801m as of 31 March 2025.
Perseus has invested around $27.5m so far to strengthen the project team and initiate early works.
These efforts 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.
Perseus’ investment in the NGP is underpinned by strong financial metrics, including an estimated pre-tax net present value (NPV 10%) of $404m and an internal rate of return of 26%. These figures are based on a long-term assumed gold price of $2,100/oz.
The NGP’s capital costs are estimated at $472m, inclusive of a $49m contingency, with an additional $51m in pre-production capital.
Perseus has a track record of successfully developing and operating gold mines in Africa, including the Edikan, Sissingué and Yaouré mines.
Perseus managing director and CEO 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.
“Acquired in May 2024 through the successful takeover of OreCorp Limited, 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 favourable destination for foreign investment.”
In January, Perseus Mining took an FID on the development of the CMA underground project at the Yaoure Gold Mine in Côte d’Ivoire.
