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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Wed Nov 10 2010 - 17:08:48 EST
2010 Press Releases-Bisha Project Update and Q3 2010 Results
November 10, 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 third quarter
results.
Mine construction has continued as scheduled, with Nevsun completing the
following during the course of Q3 and to date:
* Completion of substantially all civil, plate work, structural,
mechanical and piping elements of the project;
* Completion and establishment of operation of the power plant;
* Completion of all major earthworks associated with the tailings
management facility;
* Installation of the liner for the tailings management facility
required to support operations;
* Commissioning of various mechanical equipment; and
* Pre-strip mining continued per plan and stock-piling of ore has
commenced.
Cost expenditures over the quarter were incurred as budgeted and the project
remains on track to come within the targeted $260 million cost.
Commissioning is progressing smoothly and the following targets are expected
to be achieved in Q4.
Q4 Targets
* Operation of tailings management facility;
* Full plant commissioning, including the introduction of ore; and
* First gold pour.
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.
Cliff Davis, CEO of Nevsun, was quoted saying "We are obviously very pleased
with our on-site team that has brought us to this point and particularly
happy with the support of the Eritrean government in its continuing
contribution to the project financially, politically and logistically. It is
a truly team effort."
<http://www.nevsun.com/properties/photo_gallery> Pictures of the
construction progress are updated regularly and can be found on the Company
<http://www.nevsun.com/> website.
QUARTERLY RESULTS
The Company's end of quarter financial position includes a healthy $74.8
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 are included in the annual MD&A and posted on the Nevsun
<http://www.nevsun.com/project/highlights> web site.
The Company's third quarter loss of $1,299,876 increased by $285,887 from Q3
2009's IFRS adjusted loss of $1,013,989.
Complete details of the Q3 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: The above contains forward-looking statements
concerning the timing of the plant commissioning and anticipated commercial
production. 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
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
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