Photo by: Creamer Media
Name of the Project
Nyanzaga gold project.
Location
Lake Victoria Goldfields region, north-west Tanzania.
Project Owner/s
OreCorp.
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-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
OreCorp has signed a nonbinding memorandum of understanding with Tanzanian electricity supply company Tanesco to extend grid power to the Nyanzaga gold project.
It is intended that power to Nyanzaga will be supplied by the Tanesco national grid and delivered through a new 53 km 220 kV transmission line between Tanesco's Bulyanhulu substation and a new substation to be built at Nyanzaga.
Nyanzaga’s 2022 definitive feasibility study concluded that a grid connection is appropriate and offers a more environment-friendly and cost-effective power supply proposition than on-site diesel or heavy fuel generation. Tanesco's electricity is produced using a mix of hydropower, natural gas and fossil fuel.
Hydropower currently comprises 31% of the installed 1 602 MW grid power supply capacity of Tanesco. However, projects in development, including the Julius Nyerere hydropower project, are expected to increase the hydropower contribution to more than 70% in in the future.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
OreCorp +61 8 9381 9997.