Name of the Project
Nyanzaga gold project.

Location
Lake Victoria Goldfields region, north-west Tanzania.

Project Owner/s
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 completed the acquisition of the Nyanzaga gold project through the takeover of OreCorp, chairperson and CEO Jeff Quartermaine said at the end of May.

The compulsory acquisition process of the remaining OreCorp shares was completed on May 20, and Perseus now owns 100% of the shares in OreCorp.

Perseus is implementing three concurrent work streams – the implementation of the resettlement action plan (RAP), additional drilling of the Nyanzaga mineralisation and front-end engineering design (FEED).

The company is starting feasibility-level mining studies to release its first mineral resources and ore reserves estimates during the December quarter.

Drilling to increase Perseus’ understanding of the Nyanzaga mineral resources will start as soon as possible, taking into account Tanzanian local procurement regulations, the company has pointed out.

FEED studies are under way to optimise engineering and capital cost estimates for the project.

A final investment decision is expected by year-end, consequently allowing project development to start in the new year to achieve first gold production in the first quarter of 2027.

Key Contracts, Suppliers and Consultants
None stated.

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