Name of the Project
Nyanzaga gold project.

Location
Lake Victoria Goldfields region, north-west Tanzania.

Project Owner/s
Africa-focused gold miner Perseus Mining.

Project Description
The project has a combined openpit and underground production target of 42.51-million tonnes grading 2.07 g/t gold for 2.83-million ounces of contained gold.

Peak gold production is estimated at 295 000 oz/y, averaging 250 000 oz/y for the first eight years and 242 000 oz/y for the first ten years.

Life-of-mine average gold production is estimated at 234 000 oz/y over 10.7 years.

Openpits are scheduled to deliver 1.2-million ounces at 1.32 g/t gold and a low 3.7:1 (waste:ore) strip ratio using an average weighted lower cutoff grade of 0.48 g/t gold.

Underground mining is scheduled to deliver 1.64-million ounces at 3.55 g/t gold using an average weighted lower cutoff grade of 2.0 g/t gold.

Processing of Nyanzaga ore will be by a conventional four-million-tonne-a-year semiautogenous-ball mill and crusher, with a carbon-in-leach treatment route. The material will be ground to 80% passing 75 μm. The average life-of-mine gold recovery is 88%.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $926-million and an internal rate of return of 31%, with a payback of 3.7 years.

Capital Expenditure
$474-million.

Planned Start/End Date
Project construction is targeted to start in the third quarter of 2023, with first production due in the first quarter of 2025.

Latest Developments
Perseus Mining is well advanced in its review of existing geology, mining engineering and mineral processing studies.

Additional geotechnical and mineral processing testwork and analysis are also under way to ensure optimal value can be extracted through the development of the project.

The company has said the comprehensive review of all aspects of the project will result in the production of Perseus’ mineral resources and reserves estimates for Nyanzaga to support a final investment decision (FID), expected in January 2025.

Designed to increase the company’s understanding of the Nyanzaga mineral resource, a drilling programme was also started in August. This work aimed to supplement and, where required, fill the gaps in the work done by previous owners.

The programme was also intended to provide additional information required to inform a change in mine design, from the previous owner’s plan of a small opencut operation and an underground operation to the large-scale openpit operation contemplated by Perseus.

Full-scale construction is expected to start in late January following the FID. 

Meanwhile, front-end engineering design (FEED) is nearing completion. The FEED has focused on rightsizing the process plant throughput to align with the Perseus feasibility work, incorporating the lessons learnt from the company’s existing operations and detailed project execution planning.

Regarding the Resettlement Action Plan, Perseus has said the construction of community housing is progressing well, with first homes on track for handover before the end of December.

An early works programme is under way to prepare the site for full construction, including construction camp improvements, the establishment of services, the procurement of owner’s capability equipment and the clearing of land in camp and process areas.

Work is advanced on agreeing amendments to the existing framework agreement between Perseus’ Tanzanian subsidiary and the government of Tanzania.This work is specifically aimed at aligning the agreement with legislation and regulations introduced following the execution of the original agreement.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Perseus Mining, tel +61 8 6144 1700.