webmaster
© Copyright DEHAI-Eritrea OnLine, 1993-2010
All rights reserved
From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Thu Aug 12 2010 - 14:15:58 EDT
Bisha Mine Reaches 70% Completion & Q4 Commissioning On Track
August 12, 2010
<http://www.nevsun.com/> Nevsun Resources Ltd. (TSX:NSU / NYSE Amex:NSU) is
pleased to provide a brief update on the Bisha project and the second
quarter results.
The Bisha Project is positioned to be Eritrea's first modern day mine, with
production anticipated to yield 1.06M oz gold, 734M lb copper, 1B lb zinc
and 9.4M oz silver. Gold will be produced at an operating cost of less than
$250/oz, with copper operating costs ranging from $0.54-$0.67/lb, and zinc
operating costs at $0.50/lb. Bisha benefits from the continued support of
the Eritrean government.
Mine construction continues as scheduled and as at the date of this release
the Bisha project is now over 70% complete. During the course of Q2 2010,
the following was achieved:
* Completion of the majority of structural steel, plate work and
mechanical elements of the project;
* Installation of the Ball and SAG mills;
* Installation of the liner in the tailings management facility
commenced; and
* Pre-strip mining continued per plan.
Cost expenditures over the quarter were incurred as planned and the project
remains on track to come within the targeted $260 million total cost. As at
June 30, 2010, approximately $168 million had been spent and a further $32
million had been ordered or arranged.
The Company is working effectively towards the following targets for
remainder of 2010:
Q3
* Completion of plant electrical and piping installation; and
* Installation of the electrical power plant.
Q4
* Commencement of ore extraction and stockpiling;
* Completion of the tailings management facility;
* Plant commissioning; and
* First gold pour.
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/properties/photo_gallery.
QUARTERLY RESULTS
The Company's end of quarter financial position includes a healthy $82.1
million cash position that, together with the financial contribution by the
State of Eritrea, should carry the project through to positive cash flow in
Q1 2011. The 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 second quarter loss of $2,434,312 increased by $1,850,361 from
Q2 2009's IFRS adjusted loss of $583,951 and was due primarily to an
increase in share-based payments expense resulting from issuing options
earlier in the year than in the prior year and increasing the number of
stock options issued. The majority of the options issued in the quarter vest
only if the Bisha project is successfully producing gold within a specified
time and capital cost.
As noted in our press release on February 23, 2010, the decision to finance
the project by equity instead of debt has significantly enhanced the
estimated cash flow through the elimination of finance costs and debt
repayment.
Complete details of the Q2 2010 Financial Statements and Management's
Discussion and Analysis can be found on the Nevsun website at
<http://www.nevsun.com> www.nevsun.com as well as on Sedar at
<http://www.sedar.com> www.sedar.com and EDGAR at
<http://www.sec.gov/edgar/searchedgar/webusers.htm>
http://www.sec.gov/edgar/searchedgar/webusers.htm.
Forward Looking Statements:
Forward Looking Statements: The above contains forward-looking statements
concerning cash position, construction progress, reserves, mine planning 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
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
----[This List to be used for Eritrea Related News Only]----