Nyanzaga Gold Project Feasibility Study: $483M Capex Over a 16-Year Mine Life
Perseus Mining Limited's Nyanzaga Gold Project in Tanzania has a Feasibility Study outlining initial capital of $483M. The mine plan runs 16 years at about 200 koz Au per year.
Perseus Mining Limited's Nyanzaga Gold Project has reported Feasibility Study results for the gold project in Tanzania. It reflects Perseus Mining Limited's (PRU.TO) latest disclosed economics for the asset.
Economics. Initial capital expenditure is estimated at $483M. All-in sustaining costs are pegged at 1650 USD/oz. Economics are based on Revenue gold price used in Reserve economics: US$3,000/oz; Mineral Resource pit shell priced at US$2,700/oz; Ore Reserve pit design priced at US$2,300/oz.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 16 years. Average annual production is approximately 200 koz Au. Average head grade is 1.34 g/t Au. Metallurgical recovery averages 86%.
Resources and ownership. The company holds a 80% interest in the project. Royalties and streams: 20% free-carried – Government of Tanzania.
These figures are extracted from Perseus Mining Limited's technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proved & Probable | 95.7 Mt | 1.34 g/t Au | 4,109 koz Au |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 110.4 Mt | 1.33 g/t Au | 4,715 koz Au |
| Inferred | 6.5 Mt | 1.6 g/t Au | 343 koz Au |
Our Analysis
- IRR after-tax
- 19%
higher than 6% of 118 projects we track
- NPV after-tax
- $202M
higher than 28% of 178 projects we track
- Initial capex
- $483M
239% of NPV
costlier than 74% of 164 projects we track
- Payback
- 5.8yrs
slower than 98% of 100 projects we track
- Mine life
- 16yrs
- Discount rate
- 10%
- Study price assumption
- Revenue gold price used in Reserve economics: US$3,000/oz; Mineral Resource pit shell priced at US$2,700/oz; Ore Reserve pit design priced at US$2,300/oz
- Spot gold today
- $4,227.40/oz
Against the 118 gold projects we track, this one lands in the bottom quartile on returns: a 19% after-tax IRR, higher than only 6% of that peer set, and a 5.8-year payback that beats just 2% of the 100 projects where we have that figure. For an investor, that combination is the whole story. Nineteen percent clears the roughly 15% after-tax threshold developers typically need to attract project finance, but not by enough to absorb much slippage, and the payback is long enough that the capital sits at risk well into the mine's 16-year life before it is returned. The NPV of $202M ranks above only 28% of the 178 projects we track, so this is not a study that stands out on any headline measure.
The constraint is capital. Initial capex of $483M is 239% of NPV, and only 26% of the 164 projects we track are more capital-intensive on that measure. That ratio is what makes the thin return margin matter: a build this heavy relative to the value it creates leaves little room for cost overruns at a feasibility-stage estimate, which carries a typical plus or minus 15% band. The saving grace is the balance sheet. At a US$6.26B market cap, the $483M build is small, and this is one of 21 projects the company tracks, so funding is a portfolio allocation decision rather than an existential one. Capex against market cap, not against NPV, is the signal that matters here.
Two things temper the read. The study prices reserves at US$3,000/oz against a live spot of $4,227.40/oz, so the economics carry real upside if that gap holds, though the resource and reserve pit shells sit lower at $2,700/oz and $2,300/oz. And Tanzania is a workable but not frictionless jurisdiction. The numbers are essentially unchanged from the 2025 feasibility study, with NPV flat, capex down 8% and IRR flat. The question that decides this: can a 19% return and a 5.8-year payback survive the execution risk of a $483M build?
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.