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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Wed May 04 2011 - 09:47:33 EDT
Bisha Mine and Corporate Update
May 04, 2011
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
<http://www.nevsun.com/> Nevsun Resources Ltd. (TSX:NSU / NYSE Amex: NSU)
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: Forward Looking Statements: The above contains
statements regarding positive drill results, indications that the Bisha
concession may host multiple deposits, the Harena deposit as a potential
source of supplemental feed and valuable cash flow, the close relationship
between the interpreted graphitic horizon and the Harena massive sulphide,
and additional prospects at the Harena area. Although we believe the
expectations reflected in our forward looking statements are reasonable,
results may vary, and we cannot guarantee future results, levels of
activity, performance or achievements. . 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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