Lycopodium, an engineering and project management firm, has been awarded an EPCM (engineering, procurement and construction management) contract worth approximately AUD48mn ($30.9mn) for the Nyanzaga gold project in Tanzania.
The project, owned by fellow ASX-listed peer Perseus Mining, is situated about 60km from Mwanza, Tanzania’s second-largest city. Lycopodium’s scope includes designing and managing the construction of a carbon-in-leach processing plant with a 5mn tonnes per annum capacity, along with associated infrastructure such as power distribution, water supply from Lake Victoria, tailings pipelines, and support facilities.
Work on the contract is set to begin immediately, with first gold production targeted for the first quarter of 2027. The initial mining phase will use open-pit methods, with provisions for underground expansion as the project advances.
Tanzania is Africa’s fourth-largest gold producer, and mining remains a major contributor to the country’s GDP. The Nyanzaga project is one of the most advanced undeveloped gold assets in East Africa. According to the project's definitive feasibility study, it holds a mineral resource of 3.07mn ounces of gold and is expected to produce over 200,000 ounces annually over its first 10 years.
The project aligns with Tanzania’s push to attract more foreign investment in the sector following reforms aimed at increasing transparency and investor confidence, as noted in the United Republic of Tanzania Investor’s Guide-Mining Sector 2024, published by the Ministry of Minerals.
Lycopodium previously completed the pre-feasibility study, definitive feasibility study, and front-end engineering and design for Nyanzaga.
“Our long-standing relationship with Perseus, having worked alongside them in the development and engineering support of their current operating gold mines in Africa, including Edikan in Ghana, and Sissingué and Yaouré in Côte d’Ivoire, ensures we are well placed to provide confidence of outcome for the successful development of Nyanzaga,” said Lycopodium managing director and CEO Peter De Leo. bne IntelliNews
