From: Biniam Tekle (biniamt@dehai.org)
Date: Thu May 13 2010 - 08:36:08 EDT
http://www.nevsun.com/news/2010/may12/
*May 12, 2010*
Bisha Update & Plant Commissioning Targets
Nevsun Resources Ltd. (TSX:NSU / NYSE Amex:NSU) is pleased to provide a
brief update on the Bisha project and the first quarter results.
*BISHA PROJECT UPDATE*
The Bisha Project is positioned to be Eritrea’s first modern day mine, with
production under the current mine plan to yield payable metals of 1.06M oz
gold, 734M lb copper, 1B lb zinc and 9.4M oz silver. It benefits from the
continued support of the local Eritrea Government and is fully financed.
Mine construction continues on schedule, with the Bisha project now
approximately 60% complete. During the course of Q1 2010, the following
milestones were achieved:
1. Financing completed by Nevsun;
2. Ball and SAG mills assembled and set in place;
3. Pre-strip mining commenced;
4. Cost expenditure transpired virtually as planned. At March 31, 2010,
approximately $175 million had been spent, ordered or arranged and the
project remains on track to come within the targeted $260 million total
cost.
Pictures of the construction progress are updated regularly and can be found
on the Company web site – www.nevsun.com/properties/photo_gallery .
*Targets for remainder of 2010:*
*Q2*
1. SAG and Ball mills fully installed;
*Q3*
2. Completion of structural steel and plate-work;
3. Completion of plant electrical and piping;
4. Completion of pre-strip and ore stockpiling;
*Q4*
5. Completion of tails management facility;
6. Plant commissioning;
7. First gold production.
The Company is still on target for the commissioning of the plant in Q4 2010
and all key senior operations personnel are in place for supervision,
training and commissioning purposes. Installation of the SAG and ball
grinding mills is ongoing and should be completed by the end of Q2.
Furthermore, the construction of the tailings facility commenced in Q4 2009
and installation of the impermeable liner is ongoing and should be completed
in Q4 2010.
*QUARTERLY RESULTS*
The Company’s end of quarter financial position includes a healthy $113
million cash position that, together with the financial contribution by the
State of Eritrea, will carry the project through to positive cash flow in Q1
2011. The estimated Bisha Project cash flow under various metals price
assumptions is included in the annual MD&A and posted on the Nevsun web site
- www.nevsun.com/project/highlights .
During the first quarter the Company wrote off deferred finance costs of
$10.7 million associated with previous project debt arrangements as a result
of switching to an all equity approach to financing the Bisha construction.
As noted in our press release on February 23, 2010, the decision to finance
the project by equity instead of debt has significantly enhanced the
estimated cash flow through the elimination of finance costs and debt
repayment. The first quarter loss of $11.5 million compares to $1.3 million
for the same period last year.
Complete details of the Q1 2010 financial statements and management's
discussion and analysis can be found on the Nevsun website at
www.nevsun.comas well as on Sedar at
www.sedar.com and EDGAR at http://www.sec.gov/edgar/searchedgar/webusers.htm.
*Forward Looking Statements: *
Forward Looking Statements: The above contains forward-looking statements
concerning cash position, construction progress, reserves, mine planning and
project economics. Forward-looking statements are frequently, but not
always, identified by words such as “expects,” “anticipates,” “believes,”
“intends,” “estimates,” “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
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, those
described in the Management Discussion and Analysis of the Company. 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. For the reasons set forth above, investors should not place
undue reliance on forward-looking statements.
*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: ir@kincommunications.com
Website: www.nevsun.com
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