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From: Biniam Tekle (biniamt@dehai.org)
Date: Thu Sep 09 2010 - 07:29:47 EDT
http://www.kincommunications.com/markets/kincommunications/pressreleases/september082010/
September 08, 2010
Kin Communications' Client Nevsun Resources Reaches Billion Dollar Milestone
VANCOUVER, B.C. – Kin Communications Inc. is pleased to announce that
its client, Nevsun Resources Ltd. (TSX:NSU / NYSE Amex:NSU), reached
$1 billion market capitalization.
Nevsun shares hit a 52-week high of $5.45 pushing it over the $1
billion milestone. The milestone was reached following an announcement
by the company in August that it had bought out a third party royalty
on its 60% owned Bisha gold and base metals project in Eritrea, East
Africa.
"We have had a fantastic year and we expect our growth to continue as
we move from construction to commercial production in 2011," said
Cliff T. Davis, President and Chief Executive Officer, Nevsun
Resources. "This rally in our share price and trading volumes
demonstrates the confidence the market has in Nevsun and rewards the
hard work we have put into the Bisha project in the Eritrea."
Bisha will be the first modern mine permitted and built in Eritrea and
will set the stage for subsequent development. Nevsun is well
positioned to take advantage of the geologic potential in this area of
East Africa through strong government relationships, zero debt and a
number of very good exploration targets in the immediate area.
The Bisha mine is on track for commissioning in Q4 2010, and is
expected to produce over 400,000 ounces of gold annually at a
conservative operating cost of less than $250/oz during its first two
years of operation.
"This is a significant achievement for Nevsun and we are proud to
represent Nevsun in our portfolio of clients," said Arlen Hansen,
President of Kin Communications. "We continue to believe that
significant upside remains for shareholders as the company trades at a
much lower cash flow per share multiple than industry comparables
based on first 5 years of projected Gold/Base Metals production."
Current valuations do not consider upside associated with open-pit and
underground potential at Bisha as well as regional exploration
potential associated with Nevsun's Eritrean land position.
Nevsun marks the second of Kin's clients to reach the $1 billion
market cap milestone
http://www.kincommunications.com/clients/ventanagold/.
Kin Communications celebrated Nevsun's milestone along with Kin's
third anniversary. Kin is a full service investor relations firm
specializing in mineral resource companies since Kin's inception,
clients raise over $438m since October 2007.
Kin Communications Inc.
Cristina Bittante, VP Marketing and Investor Relations
For further information, please contact:
Kin Communications
Tel: 604 684 6730
Toll free: 1 866 684 6730
Email: ir@kincommunications.com
Website: www.kincommunications.com
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