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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Fri Jan 28 2011 - 14:06:05 EST
Bisha Commissioning and Resource Expansion on Track
January 28, 2011
<http://www.nevsun.com/> Nevsun Resources Ltd. (TSX:NSU / NYSE Amex:NSU) is
pleased to advise the Bisha Mine commissioning is progressing as planned and
its resource expansion program is well under way.
Nevsun's President Cliff Davis states "We are very pleased with the
commissioning program to date. As the plant moves into steady state
operations, we continue to increase feed grade to the mills as gold recovery
is at or above schedule. Thanks to the hard work of the Bisha team, their
contractors and the continued support from the State of Eritrea, we are on
track to be a mid-tier gold producer by the end of this quarter."
Bisha Resource and Reserve Expansion Program
The 2011 Resource and Reserve Expansion Program for Bisha is expected to
increase mine life and enable throughout expansion. The program includes
drilling incremental resources and increasing the classification of existing
resources.
"In addition to achieving commercial gold production this quarter, our
second major objective for the year is to expand Bisha's reserves and
resources," states Davis. "Through infill drilling and updated resource
models, we expect significant increases to our copper, gold, and zinc
reserves, in addition to expanding the total resource base through in-pit,
step-out and satellite deposit drilling."
The program aims to expand resources and reserves in four ways:
* Resource and reserve restatement with recent metals pricing - end Q1
2011
* Drilling satellite deposit Harena - drill results in February 2011,
resource statement in end Q1 2011
* Drilling Hangingwall Copper adjacent to Bisha pit - drill results in
Q2; resource statement by end of Q4 2011
* Infill drilling deep primary sulphide material under Bisha Main pit
- drilling in Q2; resource statement by end of Q4 2011
The first new resource and reserve statement for Bisha is expected late this
quarter, incorporating more recent metals pricing and other updated mine
plans than the previous 2006 estimates. Later in 2011, subject to drill
results, the Company expects a second increase to Bisha's resource and
reserves by including results from the Hangingwall Copper and its infill
deep drilling at Bisha Main.
The Harena drilling program concluded just before the holidays in December
2010, after 2,449m of diamond drilling. Assays are due in February, with
the objective of generating an incremental resource statement and applying
for a mining license later this year so the oxide gold material can be
co-processed with Bisha Main's ore.
The program to drill the Hangingwall Copper has commenced with two drills
mobilizing to site. The program is budgeted for up to 12,000m over three
months. After this program, the drills will move to Bisha Main, where deep
drilling will commence. The program is budgeted for 14,000m of drilling, to
infill drill the Bisha Main pit resources to 450 m, with the objective of
increasing the classification and quantity of resources.
Forward Looking Statements: The above contains forward-looking statements
concerning development progress, planned mine output 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: <mailto:ir@kincommunications.com> ir@kincommunications.com
Website: <http://www.nevsun.com> www.nevsun.com
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