Silvercorp pulled off a victory in January, outbidding Perseus Mining (TSX: PRU; ASX: PRU), the company behind 535,000 ounces of gold production last year from three West African mines – Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana. Notably, Perseus is gearing up to develop the Meyas Sand gold project in Sudan.
According to a definitive feasibility study issued in August 2022, the Nyanzaga project would require an investment of $474 million for construction and is expected to yield 242,000 ounces of gold annually over its initial decade.
The Nyanzaga project, with the potential to reach an annual output of 295,000 gold ounces, is located approximately 30 km northeast of Barrick Gold’s (TSX: ABX; NYSE: GOLD) Bulyanhulu mine and 60 km east of AngloGold Ashanti‘s (NYSE:AU) Geita gold mine.
As per the feasibility study, Nyanzaga carries an after-tax net present value of $618 million at a 5% discount rate and boasts an internal rate of return of 25%, based on a $1,750 per oz. gold price. Moreover, the government of Tanzania maintains a 16% non-dilutable free carried interest in the project.
