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More gold for Tanzania?

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The Tanzanian landscape and geology are attracting more and more exploration companies, tourists and investors. Image credit: Leon Louw for WhyAfrica

More gold for Tanzania?

Another exploration company is advancing their gold project in Tanzania, which has become a favourite investment destination in Africa for mining, energy, agri-business, and tourism companies.

By Leon Louw owner and editor of WhyAfrica

Tanzania hosts a range of minerals and metals, and several gold mining companies, including majors like AngloGold Ashanti and Barrick Gold, have established mining operations in the north-east of the country. There are several other early-stage projects, especially in the battery metal space, that are building solid projects from exceptional deposits across Tanzania.

A number of exploration companies active in Tanzania have delivered exceptional results and are rapidly developing their projects. One of them, ASX listed OreCorp Limited recently produced a Definitive Feasibility Study (DFS) for its Nyanzaga gold project in Tanzania.

The Nyanzaga project includes the Nyanzaga and Kilimani deposits and is in north-western Tanzania, south of Lake Victoria within the Sengerema District of the Mwanza Region.

According to OreCorp the Nyanzaga and Kilimani deposits occur within a sequence of folded Nyanzian sedimentary and volcanic rocks.

“The current interpretation of the Nyanzaga deposit recognises a sequence of cyclic mudstone, sandstone and chert units folded into a northerly plunging anticline. The Kilimani deposit, located 450m northeast of Nyanzaga, is developed in the fold hinge of an interpreted west-northwest striking double plunging anticline. The bulk of the Kilimani deposit occurs in the heavily weathered zone, within 140 m from surface.”

Impressive results across key metrics

According to OreCorp’s CEO and Managing Director Matthew Yates the Nyanzaga’s DFS has delivered impressive results across all key metrics.

The DFS has demonstrated that Nyanzaga can produce more than 242koz of gold per year for 10 years at a low all-in sustaining cost of less than USD1,000/oz, with annual gold production peaking at 295 koz in year six.

“Our estimated pre-production capital cost of USD474-million includes underground development, open pit pre-strip, plant, project infrastructure and a USD36-million contingency.

“We expect payback to be within four years post-tax. With a post-tax Net Present Value 5% of USD618-million and Internal Rate of Return of 25%, Nyanzaga has compelling metrics on the back of strong gold production over a long mine life,” says Yates.

With the DFS complete, OreCorp is targeting first gold in 2025.  Nyanzaga’s DFS, led by experienced global engineering firm Lycopodium Minerals, a subsidiary of ASX Lycopodium Limited , detailed all facets of geology, mining, processing, supporting infrastructure and project execution to a nominal accuracy of ±15%.

The DFS evaluated the technical and economic viability of various open pit and underground development scenarios and was optimised considering mining, processing, and economic factors. The study delivered an optimal development scenario of 4Mtpa with concurrent development of both the open pit and underground operations.

Since President Samia Suluhu Hassan was sworn in as president more than a year ago following the death of her predecessor John Pombe Magufuli, investors, and especially mining companies have been returning to the East Africa state in numbers.

Tanzania has good infrastructure, a well-functioning port, and provides great opportunities in the mining, energy, agriculture, tourism, and development sectors. WhyAfrica will be travelling to Tanzania next year as part of its Southern and East African road trip.

Leon Louw is the founder and editor of WhyAfrica. He specialises in the extraction and responsible utilisation of natural resources, the primary sector of African economies and Africa’s political economy. 

WhyAfrica does research, and reports about, natural resources and the primary sectors of African economies, and the infrastructure, equipment and engineering methods needed to extract and utilise these resources in an efficient, responsible, sustainable, ethic and environmentally friendly way, so that it will benefit the people of Africa.

Furthermore, WhyAfrica promotes Africa as an investment and travel destination, analyses the continent’s business environment and investment opportunities, and reports on how the political economy of African countries affects its development.         

WhyAfrica provides you with business intelligence that matters. Africa is our business, and we want it to be yours too. To subscribe to WhyAfrica’s free newsletter or digital magazine, and for more news on Africa, visit the website at www.whyafrica.co.za or send a direct message. WhyAfrica launched its first ever digital magazine in November 2021.

The company will undertake its annual road trip through South Africa, Zimbabwe, Zambia, the DRC, Malawi, Tanzania and Kenya in 2023. If you are interested in sponsorship or advertising opportunities, please contact me at leon@whyafrica.co.za. We have a wide range of different packages and combo deals to give your company the greatest exposure to a rapidly growing, African readership.  

The 2022 Southern Africa Road trip issue of WhyAfrica’s magazine is now available in print. The magazine was distributed in South Africa, Namibia, Zambia, Zimbabwe, and Botswana during WhyAfrica’s 2022 Southern Africa Overland Road Trip, the company’s new and innovative platform. WhyAfrica has expanded its product range and now offers its readers, followers, advertisers, subscribers and partners the following:

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