By Tasneem Bulbulia in 

Perseus Mining has taken a final investment decision (FID) to develop the Nyanzaga gold project, in Tanzania, following an update of the project’s feasibility study.

Perseus has committed to invest about $523-million, including contingency costs, to develop and prepare for the operation of the mine that is expected to produce first gold in the first quarter of 2027.

Nyanzaga’s development will be solely financed through interest-free, intercompany loans provided by Perseus from its existing cash and bullion balance of $801-million as of March 31.

“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,” Perseus MD and CEO Jeff Quartermaine says.

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, he comments.

Quartermaine says the addition of a high-quality, long-life gold mine such as Nyanzaga to Perseus’ existing asset portfolio represents a significant upgrade for Perseus and is consistent with its strategy for building a sustainable, geopolitically diversified but Africa-focused gold business involving three to four operating mines that produce between 500 000 oz/y and 600 000 oz/y gold at a cash margin of not less than $500/oz, for every ounce produced.

Perseus already owns and operates the Edikan mine, in Guinea, and the Sissingué and Yaouré mines, in Côte d’Ivoire.

These mines produced 509 977 oz of gold in the 2024 financial year.