2014 Press Releases
January 29, 2014
Nevsun 2014 Outlook and Production Guidance
2014 OBJECTIVES
* Maintain industry leading safety performance at Bisha operations
* Execute on social and environmental commitments
* Produce 180 to 200 million pounds of copper
* Achieve C1 cash costs in industry lowest quartile
* Publish increased resource and reaffirm reserve estimate
* Execute regional exploration program
* Push forward with zinc expansion
* Continue paying peer leading dividends, now quarterly
<
http://www.nevsun.com/> Nevsun Resources Ltd. (TSX: NSU / NYSE MKT: NSU)
today announces its 2014 outlook for planned copper production from the
Bisha Mine in Eritrea. The Bisha Mine, operated by Nevsun's sixty percent
owned subsidiary Bisha Mining Share Company (BMSC) is one of the highest
grade open pit base metal deposits in the world and has a mine life in
excess of 11 years.
Cliff Davis, Nevsun's CEO commented, "Following our successful transition to
copper production in 2013, Nevsun looks forward to strong free cash flow and
earnings from Bisha in 2014. For growth, we will continue to expand Bisha
resources through generative exploration programs in 2014 and to actively
evaluate potential acquisition opportunities."
Corporate Social Responsibility
Nevsun expects that BMSC will maintain top quartile safety performance at
its Bisha operations and work towards maintaining lost time injury rates
that are less than North American mining industry average. Nevsun expects
that BMSC will continue to enhance corporate social responsibility program
initiatives to reflect evolving international standards.
Copper Production Guidance
BMSC plans to produce between 180 and 200 million pounds of copper in
concentrate in 2014 through processing of approximately 2,100,000 tonnes of
ore from Bisha Main pit averaging about 4.6 percent copper feed grade. With
such high grade ore, the C1 cash cost of producing a tonne of concentrate
will be in the lowest quartile worldwide. Based on the mine plan, the copper
will be contained in approximately 280,000 tonnes of concentrate, at
approximately 30 percent copper grade. Continued plant optimisation and
increased transport logistical efficiency will remain top priorities.
Stockpiled Materials
In addition to the above copper production, the Company has considerable
additional value held in stockpiles to be monetized. This includes 6,500
tonnes of precious metals concentrate containing about 7,000 ounces of gold
with high silver content that it intends to blend with its regular copper
concentrate so as to heighten the value of the combined product. The Company
has also mined and stockpiled over 100,000 tonnes of oxide ore at over 6 g/t
Au containing over 20,000 ounces of gold, and 200,000 tonnes of pyrite sand
ore that contains approximately 55,000 ounces of gold with significant
silver content. The Company is exploring alternative methods and timing to
best monetize these stockpiles.
Resource and Reserve Update
As a result of its successful exploration program in the past year, in mid
February the Company plans to announce revised estimates for mineral
resources and reserves. Reserves and resources will be on the Bisha and
Harena mining licenses and resources will also include the Northwest and the
Hambok deposits. The estimates will include results from the extensive 2013
drilling campaign, as announced during the past number of months.
Exploration Plans
Nevsun intends to expand its exploration effort over the coming year with
active drilling occurring in and around the Bisha Mine, on the Harena Mine
License and on the Mogoraib River Exploration License. Numerous untested
geophysical targets remain on these properties and both the Bisha and Harena
deposits have not been fully defined by historical drilling. Several new
targets will be evaluated on the Mogoraib License and in addition to efforts
to expand the existing historical resource at Hambok, high potential targets
along the Hambok trend and other new areas will be also be tested.
Zinc Expansion Project
BMSC will advance its zinc expansion project through 2014, with a target
start-up in Q4 2015. As of the date of this news release, the EPCM
contractor has been appointed, initial commitments for long-lead item civil
works have been made and detailed design has commenced. Capital cost for the
zinc project will be more closely estimated during H1 2014.
Dividends
Effective March 31, 2014, the Company will increase the frequency of
dividends so as to pay quarterly instead of semi-annually. The current $0.14
annualized dividend is expected to be paid at $0.035 per share each quarter,
for holders of record on the last trading day of each quarter, payable on or
about the 15th day of the following month.
Forward Looking Statements
The above contains forward-looking statements or forward-looking information
within the meaning of the United States Private Securities Litigation Reform
Act of 1995, and applicable Canadian securities laws. Forward-looking
statements are frequently, but not always, identified by words such as
"expects," "anticipates," "believes," "intends," "estimated," "potential,"
"possible" and similar expressions, or statements that events, conditions or
results "will," "may," "could" or "should" occur or be achieved.
Forward-looking statements are statements concerning the Company's current
beliefs, plans and expectations about the future regarding the Company's
continuing operations in Eritrea including but not limited to future gold
and copper production, all of which are inherently uncertain. The actual
achievements of the Company or other future events or conditions may differ
materially from those reflected in the forward-looking statements due to a
variety of risks, uncertainties and other factors, including, without
limitation, the risks that: (i) any of the assumptions in the historical
resource estimates turn out to be incorrect, incomplete, or flawed in any
respect; (ii) the methodologies and models used to prepare the resource and
reserve estimates either underestimate or overestimate the resources or
reserves due to hidden or unknown conditions, (iii) exploration activities
or the mine operations are disrupted or suspended due to acts of god,
internal conflicts in the country of Eritrea, unforeseen government actions
or other events; (iv) the Company experiences the loss of key personnel; (v)
the Company's operations are adversely affected by other political or
military, or terrorist activities; (vi) the Company becomes involved in any
material disputes with any of its key business partners, lenders, suppliers
or customers; (vii) the Company is subjected to any hostile takeover or
other unsolicited attempts to acquire control of the Company; (viii) the
Company is subject to any adverse ruling in any of the pending litigation to
which it is a party; (ix) the Company incurs unanticipated costs as a result
of the transition from the oxide phase of the Bisha mining operations to the
copper phase in 2013; (x) the Company is unable to effectively manage the
sulphide rich reactive ground as it affects blasting and continuous ore
supply, (xi) the Company experiences a failure of drilling, processing and
mining equipment, or (xii) the Company is unable to achieve transport
logistical efficiencies in the transportation of copper concentrate from the
mine site to port, and other risks are more fully described in the Company's
Management Discussion and Analysis for the fiscal year ended December 31,
2012, which is incorporated herein by reference. The Company's
forward-looking statements are based on the beliefs, expectations and
opinions of management on the date the statements are made and the Company
assumes no obligation to update such forward-looking statements in the
future, except as required by law. For the reasons set forth above,
investors should not place undue reliance on the Company's forward-looking
statements.
Please see the Company's Annual Information Form for the fiscal year ended
December 31, 2012, and the Company's Management Discussion and Analysis for
the year ended December 31, 2012, for a more complete discussion of the risk
factors associated with our business.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is a Vancouver-based mining company with an operating
mine in Eritrea. Nevsun's 60%-owned Bisha Mine commenced commercial
production in February 2011 and ranks as one of the highest grade open pit
copper mines in the world.
NEVSUN RESOURCES LTD.
Cliff T. Davis
President & Chief Executive Officer
For further information, Contact:
Kin Communications
Tel: 604 684 6730
Toll free: 1 866 684 6730
Email: <mailto:NSU_at_kincommunications.com> NSU_at_kincommunications.com
Website: <
http://www.nevsun.com/> www.nevsun.com
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Received on Thu Feb 06 2014 - 07:32:26 EST