Africa-focused gold miner Perseus Mining says it is well advanced in its review of existing geology, mining engineering and mineral processing studies at the Nyanzaga gold project, in Tanzania, which it acquired earlier this year.

Additional geotechnical and mineral processing testwork and analysis are also under way to ensure optimal value can be extracted through the development of the project.

The company says the comprehensive review of all aspects of the project will result in the production of Perseus’s mineral resource estimate and ore reserve estimate for Nyanzaga to support a final investment decision (FID), which is expected to be made by Perseus in January.

Designed to increase Perseus’s understanding of the Nyanzaga mineral resource, a programme of drilling was also started in August. This work aimed to supplement and, where needed, fill in gaps in the work done by previous owners.

The programme was also intended to provide additional information required to inform a change in mine design from the prior owner’s plan of a small opencut operation and an underground operation to the large-scale openpit operation contemplated by Perseus.

By mid-November, eight drill rigs were operating on the site and a total of 20 278 m of combined reverse circulation (RC) and diamond (DD) drilling of the Stage 1 Tusker Hill infill resource development programme was completed, representing 77% of the budgeted 26 250 m Tusker programme.

The objective of this drilling programme was to infill existing drilling completed predominantly at a spacing of 40 m by 40 m, to a nominal drill pattern of 20 m by 40 m to provide additional confidence in the defined mineralisation.

Full-scale construction is expected to begin in late January post the project FID. Aside from the drilling programmes detailed above, significant progress has been made in preparation for the FID.

Front-end engineering design (FEED) is nearing completion. The FEED focussed on rightsizing the process plant throughput to align with the Perseus feasibility work, incorporating the lessons learnt from Perseus’s existing operations and detailed project execution planning.

Regarding the Resettlement Action Plan, Perseus says construction of community housing is progressing well, with first homes on track for handover prior to end of December.

An early works programme is under way to prepare the site for full construction including construction camp improvements, establishment of services, procurement of owner’s capability equipment and clearing of land in camp and process areas.

Work is advanced on agreeing amendments to the existing framework agreement between Perseus’s Tanzanian subsidiary and the government of Tanzania.

This work is specifically aimed at aligning the agreement with legislation and regulations introduced following the execution of the original agreement.

“When Perseus acquired the Nyanzaga gold project earlier this year, we were confident that, in our hands, Nyanzaga could be developed into a high-quality gold mine capable of generating significant benefits for all stakeholders, including our shareholders, employees, the host government and communities in Tanzania.

“The results of the work carried out by Perseus on the project to date, especially the very promising results of the infill resource definition drilling, have reinforced our belief that our goal is achievable.

“We are looking forward to making an FID on the development of Nyanzaga in January and adding a high-quality operation to our existing geopolitically diversified, Africa-focussed asset portfolio of gold mining operations and development projects.

“Following the FID, development works will commence immediately, leading to the production of first gold at the Nyanzaga gold mine by January 2027,” says Perseus MD and CEO Jeff Quartermaine.