ASX-listed OreCorp’s definitive feasibility study (DFS) into the Nyanzaga gold project, in Tanzania has estimated a pre-production capital cost of $474 million.
This includes underground development, open pit pre-strip, plant and associated project infrastructure and $36 million contingency.
“We expect payback to be within four years post-tax,” said company chief executive Matthew Yates.
“With a post-tax Net Present Value of $618 million and Internal Rate of Return of 25%, Nyanzaga has compelling metrics on the back of strong gold production over a long mine life.”
OreCorp said the combined open pit and underground mine would produce 295 000 ounces (oz) of gold per year at peak.
Production will average 250 000 oz/y for the first eight years of the mine life, and 242 000 oz/y for the first 10 years.
The DFS confirmed concurrent open pit and underground mine schedule delivers the optimal economic outcome for the project, it said.
Yates said with the DFS now complete, they are targeting first gold at Nyanzaga in 2025.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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