Nyanzaga Gold Project in north-western Tanzania is owned by Australian mining company Perseus Mining. The company become the owner of the gold project through its takeover of OreCorp Limited in May 2024.
OreCorp completed a Definitive Feasibility Study (DFS) for the Nyanzaga Project in August 2022. After acquisition, Perseus updated the study and took the Final Investment Decision (FID) to proceed with the project in April 2025.
Perseus plans to invest approximately $523m, including contingencies for the development and construction of the mine. First gold production is expected in the first quarter of 2027.
During the initial 11-year Phase 1 mine life, the Nyanzaga Project is expected to produce a total of 2.01 million ounces (Moz) of gold. Gold production from the mine is expected to average more than 200,000 ounces per annum from FY28 to FY35.
Perseus has secured necessary permitting approvals to start construction activities. The LOM project capital cost is estimated to be $679.1m.
Nyanzaga Gold Project Location
The NGP is located in north-western Tanzania, south of Lake Victoria within the Sengerema District of the Mwanza Region. The site is approximately 60km southwest of the city of Mwanza.
Overall, it includes a total area of 16,085ha.
The Geita Gold Mine and Bulyanhulu Gold Mine are approximately 60km and 35km, respectively, from the location.
Geology and Mineralisation
The project area is composed of Nyanzian greenstone volcanic rocks and sediments typical of central craton greenstone belts. The two deposits- Nyanzaga and Kilimani- lie within folded Nyanzian sedimentary and volcanic sequences.
Nyanzaga features cyclic mudstone, sandstone, and chert units folded into a northerly plunging anticline, while Kilimani, 450m northeast, is located in a double plunging anticline hinge.
Gold at Nyanzaga is concentrated at the intersection of several fault zones and anticline structures, with higher-grade mineralisation found in specific altered units and along quartz vein margins.
Kilimani’s deposit, primarily in the oxidised zone, showcases secondary enrichment similar to Nyanzaga’s fault-controlled mineralisation, characterized by an Au-Mo-As-Sb-Mn-Ba geochemical signature. The mineralisation styles suggest interconnected fluid systems, with Kilimani potentially representing an upper-level development of the Nyanzaga system.
Reserves
Nyanzaga hosts a Probable Ore Reserve of 52Mt at a grade of 1.40g/t gold for 2.3Moz. Of the total amount, Nyanzaga contains around a probale ore reserve of 49.4Mt, the remaining is with Kilimani.
The combined Measured and Indicated (M&I) Mineral Resource is estimated at 74.2 Mt grading 1.33 g/t Au, containing 3.2Moz of gold. Inferred resources stand at 15Mt of material grading 1.2 g/t Au, containing 584 koz of gold.
Mining and Ore Processing
Perseus Mining plans to exploit the Nyanzaga (Tusker) and Kilimani deposits via a large open-pit operation, departing from OreCorp’s previous 2022 DFS proposal for a smaller open pit and underground mine.
A 2024 mining study suggests employing a fleet of 180-350 t hydraulic excavators and 90-150 t off-highway dump trucks, with peak material movement expected from FY28 to FY32.
It will utilise a conventional gold processing flowsheet, featuring single-stage gyratory crushing, SAG and ball milling, gravity gold recovery, and pre-oxidation/CIL for precious metal extraction.
This is followed by split AARL elution, electrowinning, and smelting, with SO2/air detoxification of tailings before deposition.
The plant is designed for a throughput of 5 Mt per annum, processing ore over 11 years with an average head grade of 1.40 g/t.
Infrastructure
Access to the Nyanzaga Gold Project from Mwanza is facilitated by the sealed Mwanza–Geita Highway. This route crosses Smith Sound via ferry or the new Kigongo–Busisi Bridge (John Pombe Magufuli Bridge), followed by a 35km journey on unsealed roads to Ngoma.
The project will receive power from the Tanzania Electric Supply Company Limited (TANESCO) national grid through a new 53km, 220 kV transmission line from the Bulyanhulu substation.
Raw water will predominantly be sourced from Lake Victoria, with a required flow rate of 50-350 m³/h once the Tailings Storage Facility (TSF) decant returns are operational. Groundwater from dedicated boreholes will supplement this supply.
Contractors Involved
The 2022 DFS was led by engineering firm Lycopodium Minerals, a subsidiary of Lycopodium Limited.
