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| Perseus Mining |
Production Set to Begin in Early 2027, With Over 2 Million Ounces Forecast
Perseus Mining has greenlit the development of the Nyanzaga Gold Project in Tanzania, confirming a total investment of approximately $523 million. The project is expected to begin gold production in the first quarter of 2027, with total output projected at 2.01 million ounces over an 11-year mine life.
According to an updated feasibility study, the mine will operate as a large-scale, open-pit operation during its first phase. The plan forecasts peak production of 246,000 ounces in 2028 and a steady annual output exceeding 200,000 ounces from 2028 to 2035.
Fully Funded from Internal Resources, Strong Returns Projected
The project will be fully funded through Perseus’s existing cash and bullion reserves, which totaled $801 million at the end of March 2025. Early works are already underway, with $27.5 million allocated to site preparations, infrastructure, and staffing.
The project’s economics are based on a gold price of $2,100 per ounce, with an all-in site cost averaging $1,211 per ounce over the life of the mine. Perseus anticipates an undiscounted pre-tax free cash flow of $1.1 billion and a post-tax return of $706 million.
The pre-tax net present value (NPV) at a 10% discount rate is estimated at $404 million, with a 26% internal rate of return (IRR). Post-tax NPV and IRR are $202 million and 19%, respectively.
Strategic Partnership with Tanzania and Future Expansion Potential
Perseus holds an 80% stake in the project, with the Tanzanian government retaining a 20% non-contributing interest. The decision to proceed follows constructive negotiations clarifying the terms of the Framework and Shareholder agreements.
Located in the Sengerema District of north-western Tanzania—approximately 60 kilometers southwest of Mwanza—the Nyanzaga Gold Project is part of the Lake Victoria Goldfield.
A second phase of drilling is underway to upgrade resources and potentially extend the mine life beyond 11 years.
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