From: Biniam Tekle (biniamt@dehai.org)
Date: Mon Sep 21 2009 - 14:04:14 EDT
Bisha Project Secures Sales Contracts
September 21, 2009
Highlights
Metal contracts signed for future sale of copper and gold dore
Kin Communications hired as Nevsun’s Investor Relations contact
Nevsun Resources Ltd. (NSU-TSX/AMEX) is pleased to announce that its Bisha
Project has entered into metal sales contracts for its future gold and
copper production at the Bisha Mine in Eritrea, Africa. Pricing for all
metals will be fixed at spot rates at the time of delivery.
The Bisha Mine is expected to begin production in the fall of 2010, with a
projected 10 year mine life. Bisha’s gold will be refined in Switzerland
and Canada by two major international companies while the copper concentrate
will be shipped to major smelters in Europe and India.
Metal production within the first two years is estimated at approximately
900,000 ounces of payable gold, followed by over 500,000,000 pounds of
payable copper in years 3-5, plus in years 5-10 an additional 1 billion
pounds of payable zinc and 200,000,000 pounds of copper.
As a result of very high grade gold ore, the expected $200 per ounce
operating costs are much lower than industry averages and accordingly the
mine will generate significant cash flow for the Company and the Government
of Eritrea. The resulting cash flow should enable Nevsun to quickly pay off
project debt, allow for mine expansion and provide significant returns to
shareholders.
Nevsun considers the metal sales contracts as a milestone and as another
vote of confidence in the Project and the country of Eritrea. The Eritrean
Government has been very supportive of the Bisha economic development and
has been a strong partner, both financially and logistically.
Nevsun has hired Kin Communications to provide corporate communications and
investor relations services. Kin is located in Vancouver and will be in
continuous contact with Nevsun’s management, shareholders and media to
further communicate the corporate objectives of Nevsun Resources Ltd. Kin
may be reached at the contact details noted below.
In addition, John Clarke has now resigned as a Director of the Company. The
Board thanks John for his significant contribution over the past several
years.
Forward Looking Statements: The above contains forward-looking statements
concerning anticipated production, timing and the support of the Eritrean
government. 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”
Cliff T. Davis
President & Chief Executive Officer
Nsu09-08.doc For further information, 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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