http://www.nevsun.com/news/2016/february17/
2016 Press Releases
February 17, 2016
Nevsun Continues to Deliver Resource Growth from 2015 Drilling
Nevsun Resources Ltd. (TSX: NSU) (NYSE MKT: NSU) (“Nevsun” or the “Company”) is pleased to announce the updated mineral resource estimate effective December 31, 2015, for both the Bisha and Harena deposits. These updated resources form the first part of the annual year end mineral reserve and mineral resource statement for 2015. The updated mineral reserve estimate, currently in-progress, will be released in our Annual Information Form.
Highlights
*Increased Bisha district inferred resources which now contain 426 million pounds copper, 1.16 billion pounds zinc, 531 thousand ounces gold, and 18 million ounces silver
*Increased Bisha district measured and indicated resources which now contain 959 million pounds copper, 3.56 billion pounds zinc, 840 thousand ounces gold, and 46 million ounces silver
*15% increase to Harena primary indicated resources, now 3.7 million tonnes at 0.86% Cu, 3.1% Zn, 0.6 g/t Au and 27 g/t Ag
*69% increase to Harena primary inferred resources, now 10.9 million tonnes at 1.45% Cu, 4.0% Zn, 1.0g/t Au and 41 g/t Ag
*Bisha and Harena remain open at depth with further drilling ongoing in 2016
*Positive Bisha and Harena underground scoping study, more investment warranted
Cliff Davis, Nevsun CEO, commented, “Our drilling at Harena continues to produce significant increases in the total resource available for the Bisha operation. We anticipate that further drilling will continue to grow the deposit at depth. Our exploration drilling was also successful in discovering new massive sulphide mineralization at Asheli, highlighting the prospectivity of the Bisha District to host additional resources.” Mr. Davis went on to say, “The underground scoping study demonstrated the potential to extend Bisha Main life by transitioning to underground mining in the future and the potential to provide additional feed to the Bisha mill from a Harena underground mine. In 2016, we will further assess these opportunities through additional investment.”
Resource growth due to 20,308 metres of new drilling at Harena was the most pronounced development. The new drilling also led to an improved understanding of the geology and mineral zonation used in the resource estimation process. Indicated resources at Harena grew by 480,000 tonnes or 15% from the previous year adding 12 million pounds of copper, 20 thousand ounces of gold and 560 thousand ounces of silver, offset by zinc indicated resources decreasing slightly by 10 million pounds. Of most significance, the inferred resources at Harena increased by 4.5 million tonnes or 69% from the year earlier for an additional 186 million pounds of copper, 423 million pounds of zinc, 230 thousand ounces of gold and 6.47 million ounces of silver. In-situ metal grade estimates in the inferred resource category also improved as contained copper grew by 115%, zinc by 80%, gold by 177% and silver by 82%. Tables 1.1 to 1.5 contain the complete mineral resource estimates for each deposit.
At Bisha, a relatively modest 2,819 metres of drilling was completed in 2015. Despite the lower commodity prices used in 2015 as compared with 2014 for mineral resource calculations, the measured and indicated resource at Bisha remained essentially unchanged from the year previous while the inferred resource decreased slightly by 0.3 million tonnes. Year on year, the Bisha measured and indicated resources of contained zinc, gold and silver increased by 5%, 11% and 11%, respectively, helping to offset the 25% reduction in copper driven mainly by mine depletion of the supergene zone.
Life of Mine Optimization
In Q2 2015, Nevsun commissioned SRK Consulting (Canada) Inc. to prepare an internal conceptual study (internal scoping study) of the potential for underground mining at Bisha and Harena as well as to conduct a life-of-mine optimization study considering all Bisha regional resources. As this optimisation study used inferred mineral resources, no mineral reserves have been estimated.
Bisha Underground
The scoping study indicated that underground mining at Bisha is highly plausible and that some of the material currently in the open pit mine plan may be more economic if extracted by underground bulk mining methods as compared with high strip ratio open pit cutbacks. An exploration drive would be required to further assess this opportunity with increased drilling to upgrade mineral resource classifications and further investigate geotechnical, hydrology and metallurgical rock characteristics. A decision to drive an exploration ramp most likely in H2 2017 will be made following further exploration drilling and metallurgical and geotechnical test work which will be conducted from within the Bisha pit during 2016.
The scoping study also confirms the correct decision last year to halt the cutback (Phase 9) of waste stripping for the Bisha open pit. If further work at Bisha main pit demonstrates that the upside potential is limited under the current economic and technical assumptions, waste stripping could be restarted with minimal disruption to the existing mine plan provided this happens over the next one to two years.
Harena Underground
For Harena, the underground mining scoping study used an interim mineral resource calculated mid-2015 which has since been superseded by the current larger resource in Table 1.3. The study showed a potentially mineable deposit with marginal economics that was sensitive to metal prices and metallurgical recoveries. Therefore, additional metallurgical drilling at Harena is planned during 2016 before making a decision to invest in an exploration decline which would be required to take the deposit through feasibility. An updated scoping study including this work is expected in early 2017.
The current economics for Hambok and Northwest were less encouraging during the scoping study assessment. Accordingly, in the current metal price environment no further investment is planned for Hambok or Northwest.
Qualified Persons Statement
All mineral resource estimates in this report have been prepared by the Qualified Persons described below in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum's Classification System (CIM Definition Standards for Mineral Resources and Mineral Reserves 2010).
The information in this press release that relates to mineral resources was prepared by Phil Jankowski, a Qualified Person as defined by NI 43-101. Mr. Jankowski has reviewed and approved the technical contents of this press release for his relevant sections.
Peter Manojlovic, P.Geo., and Frazer Bourchier, P.Eng., are Nevsun's designated Qualified Persons and have reviewed and approved the contents of this press release.
A Quality Assurance/Quality Control programme was part of the sampling programme for the Bisha work. Certified reference material (standards), duplicates and blank samples are systematically inserted into the flow of drill samples and results analysed on a batch by batch basis. This programme includes a chain of custody whereby diamond drill core samples are initially crushed and subsampled at the Bisha Mine sample preparation facility and pulverised and analysed by Genalysis in Perth, Australia. Multi-element analysis is completed using ICP-AES methods; gold is analysed by fire assay with AAS finish.
Reverse circulation drill samples are processed at the Bisha Mine on-site laboratory, which is a member of the SGS group. Multi-element analysis is completed using ICP-OES methods with gold also analysed by fire assay.
Cautionary Notes to Investors - Resource Estimates
In accordance with applicable Canadian securities regulatory requirements, all mineral resource estimates of the Company disclosed or incorporated by reference in this news release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects, classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines"). The definitions of mineral reserves and mineral resources are set out in our disclosure of our mineral reserve and mineral resource estimates in our Annual Information Form.
The Company uses the terms "mineral resources", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". While those terms are recognized by Canadian securities regulatory authorities, they are not recognized by the United States Securities and Exchange Commission (the "SEC") and the SEC does not permit U.S. companies to disclose resources in their filings with the SEC.
Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral reserve, or is or will ever be economically or legally mineable or recovered.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is the 60% owner of the high grade Bisha Mine in Eritrea. Bisha has over 9 years of reserve life, generating revenue from both copper and zinc concentrates containing gold and silver by-products. Nevsun has a strong balance sheet with over $US400 million in cash, no debt and pays a peer leading quarterly dividend. Nevsun is well positioned to grow shareholder value through exploration at Bisha and acquisition of additional mining assets.
Received on Wed Feb 17 2016 - 08:28:15 EST