Lycopodium, an Australian Securities Exchange-listed company, has secured an engineering, procurement and construction management (EPCM) contract worth around A$48m ($30.9m) for the Nyanzaga gold project, owned by Perseus Mining.

The Nyanzaga project is located in north-western Tanzania, specifically on the north-eastern flank of the Sukumaland Archaean Greenstone Belt, roughly 60km from Mwanza, the country’s second-largest urban centre.

Work on the EPCM services set to begin immediately, with first gold production expected in the first quarter of 2027 (Q1 2027).

The scope of Lycopodium’s EPCM work includes the engineering, design, procurement, construction management and commissioning of a conventional carbon-in-leach processing plant with a capacity of five million tonnes per annum.

The contract also covers various associated non-process infrastructure such as 11kV power reticulation, water supply from Lake Victoria, tailings pipeline, decant return, workshop and warehouse facilities.

This contract represents the third collaboration between Lycopodium and Perseus following the successful establishment of the Sissingué and Yaouré gold mines.

Lycopodium previously contributed to the Nyanzaga Project through the pre-feasibility study, definitive feasibility study, and the recent completion of front-end engineering and design.

Initial mining operations will employ open-pit methods, with the potential for future expansion into underground mining as the project develops.

Lycopodium managing director and CEO Peter De Leo said: “Our extensive knowledge of this project and 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.”