By: Discovery Alert

A Crown Jewel's Strategic Expansion

The Geita gold mine in Tanzania, a cornerstone of the country's mining sector, is embarking on a strategic $100 million expansion to significantly boost its output. Currently producing 500,000 ounces annually, the project aims to increase production by 20% to 600,000 ounces per year. This expansion is strategically positioned within the world-class Lake Victoria gold belt, leveraging proven geology and existing infrastructure to minimize risk and maximize returns.

A Low-Risk, High-Return Investment Model

The expansion's financial profile is exceptionally compelling, with a capital intensity of just $1,000 per added ounce—significantly lower than the industry benchmark of $2,000-$4,000 for new projects. This efficiency is achieved by optimizing the current operation through incremental upgrades to the processing plant, which uses carbon-in-leach technology, rather than building expensive new facilities from scratch. This approach de-risks the project by building upon two decades of established operational knowledge and infrastructure.

Securing Long-Term Sustainability Through Exploration

A cornerstone of the long-term strategy is a massive boost in exploration funding, increased to $50 million per year. This investment targets a 60% growth in reserves to extend the mine's life from 7.5 years to over a decade. The focus on "near-mine" drilling, close to existing operations, reduces geological risk and has a proven track record of success, having previously added reserves at a remarkably low cost of $39 per ounce.

Enhanced Infrastructure and Economic Impact

The expansion is supported by key infrastructure investments, including a recent connection to Tanzania's national grid, which is expected to cut carbon emissions by 50,000 tonnes annually. Economically, the project will create new jobs, adding to the existing workforce of 6,800 (90% of whom are local). It also continues a strong legacy of community investment, which has funded over 1,300 local projects, reinforcing the mine's role as a vital regional economic anchor.

Continental Leadership and Project Timeline

Post-expansion, Geita will be positioned among Africa's top-tier gold mines, achieving production parity with major operations like the Kibali mine in the DRC. The project timeline targets feasibility study completion by 2027, with systematic production scaling to 600,000 ounces annually in the early 2030s, ensuring a phased and managed approach to growth.