Perseus to develop Nyanzaga Gold Project in Tanzania
Perseus Mining has officially approved the development of the Nyanzaga Gold Project (NGP) in Tanzania, committing an estimated $523 million (A$817.08 million) towards its construction. This decision follows an updated feasibility study that incorporated findings and recommendations from Perseus’ technical experts.
Nyanzaga project
The Nyanzaga project is planned as a large-scale, open-pit mining operation with a projected production of approximately 2.01 million ounces of gold over the initial 11-year mine life. The average all-in site cost for the project is estimated at $1,211 per ounce. Gold production is expected to begin in the first quarter of 2027, marking a significant milestone for Tanzania’s mining industry as it will be the country’s first major gold mine development in nearly two decades.
The project will be developed in partnership with the Government of Tanzania, which holds a 20% non-contributing interest, while Perseus retains an 80% contributing stake. Funding for the project will come entirely from Perseus Mining’s existing cash reserves, which totaled $801 million as of the end of March 2025. The company has already invested about $27.5 million to initiate early development activities. These include preparing the site, constructing temporary accommodation for workers, undertaking bulk earthworks, and implementing a relocation plan for affected communities.
From a financial standpoint, the Nyanzaga project demonstrates strong viability. It is projected to generate a pre-tax net present value (NPV) of $404 million at a 10% discount rate and deliver an internal rate of return (IRR) of 26%, based on a long-term gold price of $2,100 per ounce. The capital cost includes $472 million in direct development expenses and an additional $51 million in pre-production investments, with a contingency allocation of $49 million.
Perseus Mining CEO Jeff Quartermaine expressed enthusiasm about the project, emphasizing its potential to strengthen Tanzania’s status as an attractive destination for foreign investment. Acquired through Perseus’ acquisition of OreCorp Limited in May 2024, the Nyanzaga Gold Project is positioned to become a flagship operation within the company’s African portfolio, which also includes successful mines in Ghana and Côte d’Ivoire.
