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From: B-Haile (eritrea.lave@comhem.se)
Date: Mon Mar 28 2011 - 09:38:02 EST
Nevsun Resources Ltd.
Mar 28, 2011 09:06 ET
Nevsun Increases Mineable Reserves at Bisha by 40% Using Updated Metal Prices
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2011) - Nevsun Resources Ltd. (TSX:NSU)(NYSE Amex:NSU) is pleased to announce the revised reserve estimate for its Bisha mine in Eritrea. The revised estimate has increased the total proven and probable reserves to 28.3 million tonnes from the previously reported 20.1 million tonnes (2006 feasibility study). The net impact of higher throughputs and lower cut-off grade has resulted in an extended mine life of 13 years, while increasing previously reported robust cash flow.
Highlights
40% increase in reserves, using $1,015/oz gold, $15.85/oz silver, $2.40/lb copper, $0.92/lb zinc 20% increase in ore throughput starting in 2013 Bisha 13 year undiscounted cash flow now totals $2,162,000,000 (1)
Upgrade does not include pit expansion at depth, hanging wall copper zone or the Harena satellite deposit
(1) Bisha Project undiscounted cash flow was estimated using what Nevsun has classified below as a medium metals price scenario, at $1,200/oz gold, $24/oz silver, $3.30/lb copper and $1.00/lb zinc, all on an after-tax, after expansion capex basis.
Mineral Resources, Effective Date: 01 January, 2011
Mineral resources for the project which are based on the same resource model as the model used in the 2006 feasibility study, were re-estimated within an optimized pit shell using a base-case gold price of $1,170/oz, silver price of $18.20/oz, copper price of $2.76/lb, and zinc price of $1.05/lb, and variable NSR cut-offs, based on oxidation state, and include:
Measured: 2,124 kt grading 2.72 g/t Au, 40.01 g/t Ag, 2.26% Cu, 2.07% Zn
Indicated: 27,726 kt grading 1.62 g/t Au, 38.79 g/t Ag, 1.53% Cu, 3.22% Zn
Inferred: 10,570 kt grading 0.67 g/t Au, 47.78 g/t Ag, 0.91% Cu, 5.67% Zn
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Mineral Reserves, Effective Date: 01 January, 2011
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