From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Mon Sep 21 2009 - 14:10:02 EDT
Nevsun Resources Ltd.: Bisha Project Secures Sales Contracts
Press Release
Source: Nevsun Resources Ltd.
On Monday September 21, 2009, 11:53 am EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 09/21/09) - Highlights
- Metal contracts signed for future sale of copper and gold dore
- Kin Communications hired as Nevsun's Investor Relations contact
Nevsun Resources Ltd. (TSX:NSU - News)(AMEX:NSU - News) 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.
Cliff T. Davis President & Chief Executive Officer
Contacts:
Kin Communications
604 684 6730 or Toll free 1 866 684 6730
ir@kincommunications.com
www.nevsun.com <http://www.nevsun.com/>
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