2012 Press Releases- Nevsun Acquires Exploration License and Resources Near
Bisha Mine
August 03, 2012
http://www.nevsun.com/news/2012/august01/
HIGHLIGHTS
* Agreement to purchase the Mogoraib exploration license in Eritrea
* 97.4 square kilometers, including the copper-zinc Hambok deposit
* Open pit potential 16 km southwest of Bisha processing plant
* Historic indicated and inferred base metal resource estimate at
Hambok
<
http://www.nevsun.com/> Nevsun Resources Ltd. (TSX: NSU / NYSE MKT: NSU)
("Nevsun") today is pleased to announce that the Bisha Mining Share Company
("Bisha"), a 60% owned subsidiary of Nevsun, has entered into an agreement
(the "Agreement") to acquire the Mogoraib exploration license (the
"Property") in Eritrea. Pursuant to the Agreement, Bisha will pay Sanu
Resources, a subsidiary of NGEx Resources Inc. of Vancouver, US$5 million on
closing and potentially an additional US$7.5 million contingent upon
achieving commercial production from the Property. The Agreement is subject
to approval of authorities in Eritrea.
Nevsun CEO Cliff Davis commented: "The acquisition of the Mogoraib license
is the start of Bisha's regional generative exploration program. Bisha is
looking to establish a larger regional land package on which to explore for
additional reserves for the Bisha plant. We believe the area has good
potential for the discovery of additional VMS deposits and have started the
process of applying for additional exploration licenses."
The Mogoraib license is 97.4 square kilometers in area and includes the
Hambok copper-zinc deposit. The Hambok deposit is located 16 km southwest
of Nevsun's Bisha Mine (Figure 1). Hambok represents potential feed for
Bisha that could impact the size and timing of the primary phase investment
in a zinc flotation plant. A historical resource estimate for Hambok was
filed in a NI 43-101 technical report on March 27, 2009 by Sanu Resources
Ltd.
A qualified person has not done sufficient work to classify the historical
estimate as current mineral resources or mineral reserves and the Company is
not treating the historical estimate as current mineral resources or mineral
reserves.
While Bisha does not believe that Hambok is economic as a stand-alone
deposit it plans to undertake further exploration on the deposit. With the
Bisha plant a short distance away, Hambok could become additional feed for
Bisha base metal operations. If additional exploration is successful and
base metal reserves are identified, then Bisha may consider increasing
capacity when the Bisha plant transitions from copper to zinc in 2015 or
2016.
The Hambok massive sulphide body is a steeply east dipping, lenticular body
consisting of a series of lenses. The massive sulphide body extends for over
1000m along strike, approximately 350m down dip and is up to 75m thick in
the center of the lens.
Local stringer sulphide vein mineralization lies within the footwall to the
massive sulphide mineralization. The main sulphide minerals are pyrite,
chalcopyrite, and sphalerite. There is also minor galena, tennantite, and
digenite. The distribution of assayed base metal values within the sulphide
body shows that the best grades occur at the top, bottom, and edges of the
thickest accumulation of sulphides.
The data base for the resource calculation set out in the following table
consisted of 57 drill holes, 326 down hole surveys and assays for gold,
silver, copper and zinc. A geologic model from cross sections outlined the
massive sulphide unit and was the basis for a three dimensional mineralized
solid that constrained the estimate.
Table 1: Historic Hambok Resource Estimate within the Mineralized Shell
[Source: NI 43-101 Technical Report, Effective January 23, 2009 (1)]
Indicated
Cut-off Zn % Grade
> Cut-off
Tonnes >
Cut-off
Cu (%)
Zn(%)
Au (g/t)
Ag (g/t)
0.75
10,700,000
0.98
2.25
0.20
6.84
2.00
5,100,000
1.12
3.24
0.21
7.81
Inferred
Cut-off Zn % Grade
> Cut-off
Tonnes >
Cut-off
Cu (%)
Zn(%)
Au (g/t)
Ag (g/t)
0.75
17,000,000
0.85
1.74
0.19
5.89
2.00
5,100,000
0.96
2.81
0.19
6.20
1. The historic mineral resources estimate set out in the table above have
been extracted from NI 43-101 technical report dated January 23, 2009, by
Messrs. G. H. Giroux, P Eng. and C. Tucker Barrie, P.Geo., who are qualified
persons under NI 43-101. Assumptions in the NI 43-101 report included: (i)
metals prices - Cu at $1.30/lb; Zn at $0.79/lb; Au at $675/oz; Ag at $10/oz;
(ii) recoveries - Cu at 85%; Zn at 84%; Au at 36%; Ag at 29%, however no
metallurgical test work had been performed.
Details and additional notes can be found in the Hambok Technical report
filed March 27, 2009 on SEDAR <
http://www.sedar.com> www.sedar.com under
Sanu Resources Ltd.
Forward Looking Statements
The above contains forward-looking statements regarding potential
exploration results, expansion of the Bisha mill, historical estimated grade
and estimated mineral resources and potential for mining such economically
unproven resources. 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. Information concerning the interpretation of
drill results and mineral resource and reserve estimates also may be deemed
to be forward-looking statements, as such information constitutes a
prediction of what mineralization might be found to be present if and when a
project is actually developed. Forward-looking statements are statements
about the future and are inherently uncertain, and 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) the mine operations are disrupted or suspended
due to acts of god, internal conflicts in the country of Eritrea, or
unforeseen government actions; (iv) the Company experiences the loss of key
personnel; (v) the mine 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; or (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 2012. Other risks are more fully
described in the Company's most recent Management Discussion and Analysis,
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 forward-looking statements.
Please see the Company's Annual Information Form for the fiscal year ended
December 31, 2011 and the Company's Management Discussion and Analysis for
the quarter ended March 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 gold production in
February 2011 and is scheduled to transition to copper/gold production in
2013. Management expects the Bisha Mine will rank as one of the highest
grade open pit base metal deposits in the world.
NEVSUN RESOURCES LTD.
Cliff T. Davis
President & Chief Executive Officer
For further information, please 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
Figure 1 - Map of Mogoraib License and Bisha Area (click to enlarge)
<
http://www.nevsun.com/news/2012/august01/BMSC-w-Mogoraib-large.jpg>
http://www.nevsun.com/news/2012/august01/BMSC-w-Mogoraib.jpg
Received on Fri Aug 03 2012 - 10:20:04 EDT
