Perseus Mining Limited (ASX/TSX: PRU) has signed formal agreements with the Government of Tanzania to advance the development of its 80% owned Nyanzaga Gold Project (NGP) in Mwanza Region.
The signing ceremony took place on 20 August 2025 and included an addendum to the Framework Agreement and an addendum to the Shareholders’ Agreement, both originally dated 13 December 2021.
These agreements govern the development and operation of the project, which Perseus committed to proceeding with following its Final Investment Decision in April 2025.
The NGP is forecast to produce an average of more than 200,000 ounces of gold per year between FY28 and FY35, with peak production of approximately 250,000 ounces in FY28.
The operation will have an estimated life-of-mine average All-In Site Cost (AISC) of USD 1,211 per ounce. First gold production is targeted for Q1 2027.
Perseus’s Managing Director and CEO, Jeff Quartermaine, said the agreements followed extensive negotiations with Tanzania’s Government Negotiating Team. “Negotiations were aimed at removing ambiguities in the terms of existing agreements between the Government and Perseus and were conducted in a very cordial and positive atmosphere by both sides,” he said.
He highlighted the role of the Minister for Minerals, Hon. Anthony Mavunde, and the Treasury Registrar, Nehemiah Mchechu, noting their leadership during the process. Quartermaine added that the outcome represented “a classical win-win situation” for both parties.
The Nyanzaga Gold Project
The Nyanzaga Gold Project is located in Sengerema District, Mwanza Region, about 60 km southwest of Mwanza city and close to major gold operations including AngloGold Ashanti’s Geita and Barrick’s Bulyanhulu mines. It lies within the Sukumaland Archaean Greenstone Belt of the Lake Victoria Goldfield.
The Project is 80% owned by Perseus Mining, with the Government of Tanzania holding the remaining 20%
The project’s October 2024 Mineral Resource Estimate includes an Indicated Resource of 74.2 million tonnes grading 1.33 g/t gold for 3.2 million ounces, and an Inferred Resource of 15 million tonnes grading 1.2 g/t gold for 0.6 million ounces.
The April 2025 Ore Reserve Estimate confirmed Probable Reserves of 52 million tonnes grading 1.40 g/t gold for 2.3 million ounces.
Capital expenditure to first gold pour is estimated at USD 523 million, including USD 472 million for plant and infrastructure, and USD 51 million in pre-production costs.
The project is expected to generate an Internal Rate of Return of 26% pre-tax and 19% post-tax, with a Net Present Value (NPV10) of USD 404 million pre-tax and USD 202 million post-tax at a gold price of USD 2,100 per ounce.
Perseus is currently undertaking a second phase of resource drilling aimed at upgrading Inferred Resources to Indicated status to potentially expand the reserve base and extend the mine life beyond the current 11-year projection.
Since acquiring the project in April 2024, Perseus has drilled 58,609 metres across the Tusker and Kilimani deposits.
The company already operates three gold mines in Africa: Edikan in Ghana, and Sissingué and Yaouré in Côte d’Ivoire. The Nyanzaga development will be Perseus’s fourth operating mine and is forecast to become the lowest-cost operation in its portfolio.
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