SX- and TSX-listed Perseus Mining has formally signed a set of landmark agreements with the government of Tanzania to advance the development of the $524-million Nyanzaga gold project, marking a major milestone in one of East Africa’s most significant mining ventures. The agreements, signed through Perseus’ subsidiary Nyanzaga Mining Company, come after months of detailed negotiations aimed at securing a framework that benefits both the investor and the host nation.
Perseus Managing Director and CEO Jeff Quartermaine confirmed that the signing follows the company’s final investment decision in April 2025 to proceed with construction of the Nyanzaga mine. He explained that Perseus engaged extensively with Tanzania’s government negotiating team and senior officials to refine and amend agreements previously set by the project’s former owner. According to Quartermaine, the outcome of the talks eliminates ambiguity, creates certainty for both sides, and represents a genuine “win-win” situation that sets the foundation for long-term cooperation.
The Nyanzaga gold mine is projected to be the lowest-cost operation in Perseus’ mining portfolio. Forecasts show average annual production of 200,000 ounces of gold between 2028 and 2035, with output peaking at 246,000 ounces in its first year of operation. The mine’s life-of-mine average all-in site cost is expected to be just $1,211 per ounce, underscoring its competitiveness on the global gold market. Perseus is targeting first gold production in the first quarter of 2027, with financial modelling at a gold price of $2,700 per ounce suggesting a post-tax internal rate of return (IRR) of 34%.
Beyond its immediate production profile, Perseus is working to extend the mine’s current 11-year life through a second phase of resource definition drilling. This program aims to upgrade existing inferred mineral resources to indicated status, thereby creating opportunities to add more years of production and maximize the long-term value of the project.
Quartermaine emphasized that while some work remains to fully implement the newly agreed changes, Perseus looks forward to continued close collaboration with the Tanzanian government. The project not only strengthens Perseus’ position as a leading gold producer in Africa but also reinforces Tanzania’s reputation as a mining-friendly jurisdiction that welcomes international investment while safeguarding national interests.
With construction underway and new exploration efforts in motion, the Nyanzaga project is poised to become a cornerstone of Perseus Mining’s growth strategy, delivering significant economic benefits to Tanzania through job creation, royalties, and infrastructure investment, while generating long-term value for shareholders.
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