From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Tue Jul 13 2010 - 15:07:51 EDT
Nevsun Resources Ltd.: Bisha Project Remains on Schedule and On Budget
Jul 13, 2010 13:29 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 13, 2010) - Nevsun Resources
Ltd. (TSX:NSU)(NYSE Amex:NSU) is pleased to provide a brief update on the
Bisha project in Eritrea.
The project continues to be on schedule and on budget. Bisha is advancing
well towards plant commissioning phase late this year. After a relatively
short commissioning process (60 days) and after reaching commercial
production during Q1 2011, the Company expects to produce in excess of
100,000 ounces of gold each quarter at a cost of less than $250 per ounce.
With over 95% of procurement completed, project management are comfortable
the actual capital cost will be within the budget of approximately $260
million.
With these low operating costs, Bisha is anticipated to have much higher
than average industry profitability and cash flow. Estimated Bisha Project
cash flow under various metals price assumptions is included in the annual
MD&A and posted on the Nevsun web site -
<http://www.nevsun.com/project/highlights>
www.nevsun.com/project/highlights.
The Company's cash position at June 30 was approximately US$83 million. This
cash, plus the normal contributions by the Eritrean National Mining
Corporation is enough to satisfy all construction cash requirements. Q2
financial results will be released on or about August 12, 2010.
Pictures of the construction progress are updated regularly and can be found
on the Company web site - <http://www.nevsun.com/project/gallery>
www.nevsun.com/project/gallery.
Forward Looking Statements: The above contains forward-looking statements
concerning cash position, construction progress and project economics.
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, President & Chief Executive Officer
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