Wedoany.com Report-May 5, Perseus Mining, an African-focused gold company, has finalized its investment decision to develop the Nyanzaga Gold Project (NGP) in Tanzania, with a total investment of approximately $523 million. The decision follows an updated feasibility study incorporating technical assessments by Perseus’ team, confirming the project’s viability.

The development will be financed through interest-free loans from Perseus’ existing cash reserves.

Perseus holds an 80% contributing interest in the NGP, while the Government of Tanzania owns a 20% non-contributing stake. The project involves a large-scale, open-pit mining operation expected to produce 2.01 million ounces of gold over an 11-year initial phase, with an average all-in site cost of $1,211 per ounce. Gold production is scheduled to commence in the first quarter of 2027.

The development will be funded through interest-free loans from Perseus’ cash reserves, which totaled $801 million as of March 31, 2025. To date, Perseus has invested $27.5 million in early works, including site establishment, temporary construction accommodations, bulk earthworks, and a relocation plan to build new homes for communities affected by the project. Perseus’ CEO Jeff Quartermaine stated: “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.”

The NGP boasts strong financial projections, with a pre-tax net present value (NPV 10%) of $404 million and an internal rate of return of 26%, based on a long-term gold price of $2,100 per ounce. Capital costs are estimated at $472 million, including a $49 million contingency, plus $51 million for pre-production expenses.

Acquired in May 2024 through the takeover of OreCorp Limited, the NGP marks Tanzania’s first major gold mine development in 17 years. Quartermaine added: “The Nyanzaga Gold Project represents a major step forward in enhancing Tanzania’s reputation as a favorable destination for foreign investment.” Perseus’ experience operating successful gold mines in Africa, such as Edikan, Sissingué, and Yaouré, supports its capability to deliver the project.

The NGP is expected to contribute to economic growth in Tanzania by creating jobs and fostering sustainable development. Perseus’ commitment to responsible mining practices and community engagement ensures that the project aligns with local needs while advancing the region’s mining industry.