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From: Biniam Tekle (biniamt@dehai.org)
Date: Tue May 03 2011 - 09:47:23 EDT
http://www.nevsun.com/news/2011/may03/
May 03, 2011 08:01 ET
Nevsun Resources Ltd.: Bisha Mine and Corporate Update
**
*VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 3, 2011) -* Nevsun
Resources Ltd. (TSX:NSU)(NYSE Amex:NSU) -
*HIGHLIGHTS*
- *Bisha purchase price to be finalized on or before June 30, 2011*
- *Gold production – 105,000 ounces year to date*
- *Safety milestone – 7 million man-hours, with only 6 lost time injuries
*
Nevsun Resources Ltd. is pleased to announce that the Bisha mine in Eritrea
continues to have strong operating performance since declaring commercial
production in February this year. The Company also advises that Nevsun and
the Eritrean National Mining Corporation (ENAMCO) have agreed to finalize
the Bisha purchase price by June 30, 2011 (see details below).
*Corporate Update*
The Bisha Mine is subject to a Shareholders' Agreement between Nevsun and
ENAMCO regarding the purchase by ENAMCO of a 30% interest in Bisha. To allow
the parties sufficient time to make a final determination of the purchase
price, Nevsun and ENAMCO have agreed to have the price finalized by June 30,
2011. The parties have already agreed that the price will be settled from
the after tax cash flow from the mine, which will leave Nevsun with the
majority of profits until the price is fully paid. Effectively, the ENAMCO
interest in Bisha pays for itself, without a separate use of government
funds.
*Operating Highlights*
>From January to April the mine produced over 105,000 ounces of gold, which
includes two start-up months of early stage ramp up. Recoveries continue to
exceed those planned. Without any hedges in place, the Company enjoys full
exposure to metals prices and sells gold at spot prices.
Cash from operations continues to accumulate. Q1 2011 financial statements
and management discussion and analysis should be released on or before May
12, 2011.
*Safety Milestone*
The Bisha project also achieved a significant milestone in late April when
it surpassed seven million man-hours with no major injuries or fatalities
amongst both employees and contractors, a remarkable achievement in a new
mining jurisdiction. Nevsun and Bisha Mining Share Company are committed to
implementing processes and procedures that meet or surpass International
standards for mining and industrial safety.
Cliff Davis, Nevsun CEO, commented, "I am very proud of our remarkable
safety record. It is a credit to the strong Bisha team and world class
contractors employed in the development of the Bisha project. We have
introduced to the Eritrean work place high standards for safety practices
that have been properly implemented throughout our employee and contractor
group."
*Forward Looking Statements: The above contains forward-looking statements
regarding the timing of Q1 results and finalization of the purchase price
for 30% of Bisha. 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. 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
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