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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Fri Sep 03 2010 - 06:46:15 EDT
Eritrea gold project now 70% complete
By: Megan Wait <http://www.miningweekly.com/author.php?u_id=1065>
3rd September 2010
Canadian miner Nevsun Resources reports that its gold/copper/zinc Bisha mine
fourth-quarter commissioning is on track and the project has now reached 70%
completion.
In its second quarterly report, the company states that it has achieved the
completion of most of the structural steel, platework and mechanical
elements of the project, including the installation of the ball and
semiautogenous grinding mills and the installation of the liner in the
tailings management.
Cost Expenditures
Further, it says that cost expenditures over the quarter were in line with
plans and that the project remains on track to come in within the targeted
$260-million total cost. By June 30, about $168-million had been spent and a
further $32-million had been arranged for further expenditure.
The project, which is positioned to be Eritrea's first modern-day mine,
anticipates production to yield 1,06-million ounces of gold, 734-million
pounds of copper, one- billion pounds of zinc and 9,4-million ounces of
silver.
Gold will be produced at an operating cost of less than $250/oz, with copper
operating costs ranging from $0,54/lb to $0,67/lb, and zinc operating costs
at $0,50/lb. Continued Support Bisha benefits from the continued support of
the Eritrean government.
Further, the company adds that it is working effectively in completing the
plant's electrical and piping installations as well as the installation of
the electrical power plant. This is expected to be concluded by the third
quarter of 2010.
Ore Extraction
Finally, in the fourth quarter of the year, the company aims to start ore
extraction and stockpiling, complete the tailings management facility and
commission the plant, and anticipates its first gold pour.
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