By: Creamer media

The agreements follow extensive negotiations between the two parties to govern the operation of the mine that is under development.

Perseus MD and CEO Jeff Quartermaine says that, following the company’s final investment decision to develop the $524-million Nyanzaga mine in April, the team engaged extensively with Tanzania’s government negotiating team and other key government officials and authorities to agree amendments to the frameworks agreed with the prior owner of the project. 

The negotiations aimed to remove ambiguities in terms of the existing agreements and has resulted in a “win-win” situation for both parties.

There remains some work to fully implement the agreed changes, but Quartermaine says he looks forward to the continued cooperation with the government of Tanzania in this regard.

The mine is forecast to be the lowest-cost operation in Perseus’ mine portfolio and will produce 200 000 oz/y of gold from the 2028 to the 2035 financial years, with production peaking at 246 000 oz/y in the first year.

The life-of-mine average all-in site cost will be $1 211/oz.

Perseus is on track for first gold production from Nyanzaga in the first quarter of calendar year 2027.

At a gold price of $2 700/oz, the internal rate of return on the project is 34% after tax.

Meanwhile, Perseus continues with a second phase of resource definition drilling at the project, which aims to convert inferred mineral resources into indicated status, which could enable the current 11-year mine life to be extended.