Perseus Mining Proceeds with Development of the Nyanzaga GOLD Project
28 APRIL 202 5
NEWS RELEASE
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PERSEUS MINING PROCEEDS WITH DEVELOPMENT OF THE
NYANZAGA GOLD PROJECT
OVERVIEW
Perth, Western Australia/ April 28, 2025/ Perseus Mining Limited (ASX/TSX: PRU) is pleased to announce
that a Final Investment Decision ( FID) has been taken to develop the Nyanzaga Gold Project (NGP) in
Tanzania, following an update of the NGP Feasibility Study (FS).
Perseus has committed to invest approximately US$523 million (including contingency) to develop and
prepare for the operation of the mine that is expected to produce first gold in Q1 2027. The NGP
development will be solely financed via interest free, intercompany loans provided by Perseus from its
existing cash and bullion balance of US$801 million as of 31 March 2025.
In anticipation of an affirmative FID, Perseus has spent approximately US$27.5 million to date to build project
team capacity and commence e arly works that include site establishment, installation of temporary
construction accommodation, and bulk earthworks as well as implementing the Relocation Action Plan (RAP)
to construct new dwellings for people impacted by future construction and operating activities.
The updated FS incorporates findings and recommendations from a range of comprehensive technical
assessments made by Perseus’s technical team. Notably, Perseus has opted for a large scale, wholly open-
pit mining operation, for the first phase of development, in preference to a smaller scale, combined open pit
- underground option contemplated by the previous owners. Key metrics associated with the NGP include
the following:
Production & Cost Metrics (100% basis):
• Total gold production over an 11-year, Phase 1 mine life is currently estimated to be 2.01 Moz based
on a JORC 2012 Probable Ore Reserve of 52.0 Mt @ 1.40 g/t gold for 2.3 Moz.
• Gold production averages over 200,000 ounces of gold per annum from FY28 to FY35, with peak
production of 246,000 ounces in FY28.
• Over the life of the mine, the estimated average All-In Site Cost (AISC) is US$1,211/oz.
• Capital cost for the plant and site infrastructure is estimated at US$472 million inclusive of US$49
million of contingency, and pre-production capital of US$51 million, giving a total capital cost to first
gold pour of US$523 million.
Investment Metrics (100% basis)1:
Applying Perseus’s assumed long-term gold price of US$2,100/oz, the NGP’s investment metrics include:
• Undiscounted free cashflow pre-tax of US$1,133 million and post-tax of US$706 million, (or
US$2,252 million pre-tax and US$1,471 million post-tax at a gold price of US$2,700/oz.)
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• Net Present Value (NPV10%) of US$404 million pre-tax and US$202 million post-tax, (or US$1,010
million pre-tax and US$617 million post-tax at a gold price of US$2,700/oz).
• Internal Rate of Return (IRR) of 26% pre-tax and 19% post-tax (or 45% pre-tax and 34% post-tax at a
gold price of US$2,700/oz).
The FID to proceed with developing the NGP builds upon Perseus’s demonstrated capacity to successfully
develop and efficiently operate modern gold mines on the African continent. Perseus has previously
successfully developed, and is now operating three gold mines including Edikan, Sissingu é, and most
recently, the Yaouré gold mine that was delivered ahead of schedule and under budget in 2020, using
many of the same team that will be deployed on the NGP development. The FID also comes following
constructive engagement with the Government of Tanzania to clarify terms of an existing Framework
Agreement that sets out the basis on which the NGP will be developed and operated, as well as the
Shareholder’s Agreement between the Tanzanian Government and Perseus.1
A second phase of resource definition drilling is currently underway at the NGP with the aim of converting
Inferred Mineral Resources into Indicated Mineral Resources, which would potentially enable the Ore
Reserve to be materially expanded and the life of the NGP operation extended during the second phase
of the Project, beyond the currently projected 11-year mine life.
1 Note: Perseus owns an 80% contributing interest in the NGP together with the Government of Tanzania who owns a 20% non-contributing interest.
This announcement was approved for release by the Managing Director & CEO, Jeff Quartermaine.
Perseus’s Managing Director and CEO Jeff Quartermaine said:
“Perseus is very excited by its decision to proceed with the development of the Nyanzaga Gold Project and is looking
forward to working alongside the Government of Tanzania to deliver a world class mining operation. Acquired in
May 2024 through the successful takeover of OreCorp Limited, the Nyanzaga Gold Project will be the first major gold
mine development in Tanzania in 17 years and represents a major step forward in terms of enhancing Tanzania’s
reputation as a favourable destination for foreign investment.
Importantly, the addition of a high-quality, long-life gold mine such as the Nyanzaga Gold Mine to Perseus’s existing
asset portfolio, that currently includes the Yaour é, Sissingu é and Edikan gold mines , as well as the undeveloped
Meyas Sand Gold Project, represents a significant upgrade for Perseus and is consistent with the Company’s strategy
for building a sustainable, geopolitically diversified but African -focused gold business involving 3 -4 operating mines
that produce between 500–600koz of gold per annum at a cash margin of not less than US$500 per ounce, for every
ounce produced.
With the development of the Nyanzaga Gold Project, Perseus continues to strengthen its claim to be recognised as
one of the leading gold producers operating on the African continent.”
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PROJECT DETAILS
LOCATION
The NGP is located in north-western Tanzania, south of Lake Victoria within the Sengerema District of the
Mwanza Region (Figure 1). The NGP is approximately 60 km southwest of Mwanza (Tanzania’s second largest
city) and 7 km southeast of Ngoma, with the total area of the Project being 16,085 ha.
Figure 1: NGP location plan
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The proposed site layout is presented in Figure 2.
Figure 2: NGP site layout plan
MINING
Based on the results of a techno-economic assessment, Perseus plans to mine the Nyanzaga (Tusker) and
Kilimani deposits using a large open pit, as opposed to the smaller open pit and underground mine concept
previously proposed by OreCorp in their 2022 Definitive Feasibility Study (DFS). A mining study completed in
2024 proposes a mining fleet that uses 180-350 t hydraulic excavators matched with 90-150 t off-highway
dump trucks. Over the life of the NGP, 52.0 Mt of ore and 297.8 Mt of waste will be mined at an average strip
ratio of 5.7 (Figure 3). Total material movement is forecast to peak during the period FY28 to FY32.
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Figure 3: NGP ore and waste production profile over life of mine
PROCESSING
The NGP process flowsheet (Figure 4) is a conventional gold processing flowsheet that includes single stage
gyratory crushing; SAG milling with pebble recycle and ball milling in closed circuit with hydrocyclones (SAB
comminution); gravity gold recovery; pre -oxidation/cyanide-in-leach (CIL) to leach and adsorb precious
metals from the milled ore to activated carbon; split AARL elution, electrowinning and smelting to recover
precious metals from loaded activated carbon to doré; and SO 2/air detoxification of CIL tailings before
pumping and deposition to the Tailings Storage Facility (TSF).
Figure 4: Simplified process flow sheet for the NGP
Flowsheet selection is supported by an extensive body of metallurgical test work completed across
2016-2017 and 2022. Nameplate plant throughput for the process plant is 5 Mt per annum for the projected
ore blend requiring the highest specific energy input (which is based on 85th percentile specific energy for
each ore type proportionally in the blend). Perseus notes the optionality to run at higher throughput rates
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based on ore specific comminution parameters , and major equipment selection and engineering has
considered achieving higher volumetric throughput. Grind sensitivity test work indicates that all ore types
are grind sensitive, with gold extraction increasing with fineness of grind. Techno-economic assessments
identified an optimum grind size of P80 75 µm.
Ore will be processed through the NGP process plant across 11 financial years, with an average head grade
of 1.40 g/t ( Figure 5). Perseus has used the average specific energy for each ore type as the basis of
calculating instantaneous mill throughput and considered 8,000 h/a runtime (91.3% of total hours per year)
for production scheduling.
Figure 5: NGP process plant ore treatment rate and feed grade profile over life of mine
Variability gravity/leach test work demonstrated a range of extractions from 76% to 99% for gold. Oxide,
sandstone and chert ore types were all shown to be free milling. While a small proportion of the mudstone
ore exhibited mild preg -robbing characteristics, these were overcome by utilising a CIL circuit design.
Metallurgical recovery of gold over the Life Of Mine (LOM) is expected to average 86.0% at grind size of P80
75 µm. A total of 2.01 Moz of gold are recovered over the life of mine, with total annual gold production of
over 200 koz per annum achieved from FY28 to FY35, and peak production of 246 koz in FY28 (Figure 6).
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Figure 6: NGP ounce production profile over life of mine
PROJECT INFRASTRUCTURE
The NGP is accessed from Mwanza, Tanzania's second largest city, by the sealed Mwanza – Geita Highway,
crossing Smith Sound (an arm of Lake Victoria) via ferry or the recently constructed Kigongo – Busisi Bridge
(John Pombe Magufuli Bridge), and then travelling on the unsealed regional road network for 35 km to
Ngoma. The NGP area is approximately 9 km southeast of Ngoma, and an unsealed road is currently under
construction to bypass Ngoma township and reach the NGP site.
Power will be supplied from the Tanzania Electric Supply Company Limited (TANESCO) operated national grid
at the Bulyanhulu substation and delivered via a new 53 km long 220 kV transmission line.
Raw water for the site will be predominantly extracted from nearby Lake Victoria, with the water balance
indicating a flow rate of 50-350 m3/h is required once the TSF decant return water supply becomes available
(dependent on the season ). Raw water supply will be s upplemented by groundwater extracted from
dedicated boreholes. Process water will be predominantly supplied by water recovered from the TSF decant.
The TSF will comprise a cross-valley storage facility formed by three zoned earth-fill embankments. The TSF
has been designed in accordance with the Australian National Committee on Large Dams (ANCOLD)
Guidelines (2019), the Global Industry Standard on Tailings Management (GISTM, 2020), Implementation
Guidance for the International Cyanide Code (International Cyanide and Management Institute, 2016) and
the United Republic of Tanzania Ministry of Water Dam Safety Guidelines (2020). The TSF will store life of
mine tailings production of 52.0 Mt, with the embankments constructed in stages. The full internal basin area
and upstream batter slopes of embankments will be fully lined with high-density polyethylene (HDPE) liner.
A permanent operations village will accommodate 350 personnel, management and skilled technical staff
from outside the immediate NGP area. Temporary construction accommodation will be provided by the
respective construction contractors. A bus service will be provided to and from local population centres for
workers from local towns and villages.
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ENVIRONMENT, SOCIAL & GOVERNANCE (ESG) CONSIDERATIONS
The Relocation Action Plan (RAP) remains a critical prerequisite for the progression of the NGP, with housing
construction scheduled for completion by 1 October 2025 to support project timeline, budget adherence,
and the preservation of Perseus social licence to operate. A comprehensive community engagement
strategy, including livelihood restoration initiatives, is also underway to establish sustainable community
relationships from project inception.
The Health, Safety and Environmental (HSE) framework for the NGP will align with Perseus's HSE
Management System, supported by the EPCM contractor’s HSE programme during the construction phase,
and will include the application of group-wide risk tools and fatality risk controls.
An Environmental and Social Impact Assessment and Environmental Management Plan (EMP) have been
completed. Perseus is now working with the Tanzanian National Environment Management Council to
update the EMP, following the recent updates to the site layout that were made in the Feasibility Study.
A Project Security Development Plan has also been developed, aligned with Perseus’s standards, Tanzanian
legislation and the Voluntary Principles on Security and Human Rights. A Memorandum of Understanding to
formalise cooperation with the Tanzanian Police Force is also expected to be signed shortly.
PERMITTING
Tanzania has a mature regulatory framework that governs the construction and operation of mining projects
in the country. Perseus has secured the relevant permitting approvals to initiate construction activities with
subsequent permitting integrated into the master project schedule. As it stands , the approvals are not
represented on the project critical path.
GOVERNMENT AGREEMENTS
Under prior ownership, two agreements were executed in 2021 with the Government of Tanzania that
govern the joint venture ownership of the NGP (Agreements):
• Framework Agreement (FWA) setting out the investment and fiscal arrangements governing the
NGP
• Shareholder Agreement (SHA) setting out the agreements between Perseus and the Government
of Tanzania as shareholders of the NGP. This includes ratifying the 20% free carry Government of
Tanzania ownership in the NGP
Since acquiring OreCorp and the NGP, Perseus has worked collaboratively with the Government of Tanzania
to amend the FWA and SHA (Addendums). This was required to remedy uncertainty that existed post the
release of the Mining State Participation Regulation s issued in 2022 and other key fiscal matters. The
Agreements and Addendums provide formal alignment in relation to the regulatory framework under which
the NGP will be developed and operated.
At the time of this release, the Addendums are in agreed form subject to formal sign-off by the Tanzanian
Attorney General.
CAPITAL COST ESTIMATE
The LOM project capital cost estimate of US$ 679.1 million development, pre-production, sustaining,
rehabilitation and closure costs required for the NGP for a mine life that spans 11 financial year periods, with
a processing production rate of +5.0 Mt/a. Project capital costs are summarised in Table 1.
Table 1: NGP life of mine capital cost summary (Q4CY2024, -10/+15%)
COST ELEMENT US$M
Development and Pre-Production Capital 523.1
Sustaining Capital 97.1
Rehabilitation and Closure Capital 58.8
LOM Project Total 679.1