Perseus on target to bring Tanzania gold mine to life after lifting Nyanzaga ore reserves by 73%

Perseus Mining (ASX:PRU) has told shareholders it’s on target to bring Tanzania’s first gold mine in 18 years into production after producing a 73% increase in reserves at the Nyanzaga Gold Project (NGP).

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The Australian company’s aggressive development approach after acquiring Nyanzaga in May CY24 through a takeover of OreCorp led to it taking a positive final investment decision (FID) in April CY25.

It also saw Perseus undertake ~82,700 metres of RC and diamond drilling across the Tusker and Kilimani deposit areas since acquiring the project. That aggressive drilling underpinned the significant increase in the project’s gold reserves, which is now up to four million ounces, up significantly on the 2.3M ounces reported in April CY25 as part of an updated NGP feasibility study.

The increase also benefits from a further cutback to a large-scale, open-pit mining operation as outlined in the NGP feasibility study, Perseus said today.

Notably, the project’s mine life has been extended out to 16 years, including 14 years of production at greater than 200,000 ounces per annum.

Total gold production over the 16-years is currently estimated to be 3.5 million ounces based on a probable ore reserve of 90.9 million tonnes (Mt) at 1.38 grams per tonne (g/t) gold, the company’s chiefs explained.

Perseus management said that with the Nyanzaga development, the company continues to strengthen its claim to be recognised as one of the leading gold producers operating on the African continent. It also enhances Tanzania’s reputation as a favourable destination for foreign investment.

First gold production is scheduled for January CY27, with peak production of 246,000 ounces expected in FY28. Gold production is expected to exceed 200,000 ounces of gold per annum from FY28 to FY41.

PRU is selling at $5.69 heading into Friday.

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