PERSEUS Mining has resolved to spend $523m out of its own resources to develop the Nyanzaga Gold Mine in Tanzania. This will be the first major gold mine built in Tanzania for 17 years.
Nyanzaga is the second gold project this year in which Perseus has decided to make a significant investment. In January, it took the final investment decision to proceed with the CMA underground project at the Yaouré Gold Mine in Côte d’Ivoire, where it is still awaiting government approvals.
MD and CEO Jeff Quartermain said Nyanzaga was a high-quality, long-life gold mine that would upgrade the group’s existing portfolio, which includes the Yaouré, Sissingué and Edikan mines as well as the undeveloped Meyas Sand Gold project.
The group’s aim is to have a geographically diversified but African-focused gold business involving three to four mines producing between 500,000 ounces and 600,000 oz of gold a year at a cash margin of at least $500/oz.
Last year Perseus bought an 80% stake in Nyanzaga for A$258m. The Tanzanian government owns the other 20%. Nyanzaga has reported probable ore reserves of about 40.08 million tons at a grade of 2.02 grams a ton, which should yield about 2.6 million ounces of gold.
The gold price has gained about 45% over the past year.
