2012 Press Releases- Nevsun's Bisha Copper Expansion Project Update
June 19, 2012
HIGHLIGHTS
* Copper plant on schedule and within budget to-date
* Copper concentrate to be bulk shipped from existing port facilities
* On-track for commissioning in mid 2013
<
http://www.nevsun.com/> Nevsun Resources Ltd. (
<
http://www.nevsun.com/investors/quotes/> TSX:NSU / NYSE MKT: NSU) is
pleased to advise that the <
http://www.nevsun.com/projects/bisha-main/>
Bisha Mine copper expansion project ("project") is proceeding well against
schedule and budget.
The Bisha <
http://www.nevsun.com/projects/bisha-main/copper-expansion/>
copper expansion project will expand ore processing capacity from 2.0 to 2.4
million tonnes per year and convert from gold/silver doré to copper
concentrate production. Annual run-rate copper production is expected to be
180 million pounds of payable metal per year, in concentrate with
significant gold and silver by-product credits. The copper plant total spend
forecast remains approximately $100 million and hot commissioning is
scheduled for Q2 2013.
The project is currently tracking within schedule and budget. As at the end
of May, approximately 60% of the project was committed (ordered and price
fixed). The remaining un-committed budget includes a relatively large $7
million in contingency.
A dedicated project page has been added to the Nevsun website and a project
<
http://www.nevsun.com/projects/bisha-main/gallery/> photo gallery is
regularly updated at
<
http://www.nevsun.com/projects/bisha-main/copper-expansion/>
http://www.nevsun.com/copper-expansion.
Copper Plant Progress
With all major process critical and long lead orders placed, the current
project activities include outstanding procurement, equipment delivery,
completion of civil works and commencement of steel erection. Most of the
major equipment, including all the copper flotation cells, has arrived at
Bisha and is awaiting installation. The filter press frames, regrind mills,
concentrate thickener, mill cyclones and regrind cyclones are in transit.
Foundations for the cells, racking, reagents store, and workshop will soon
be complete. Assembly and installation of the plant equipment is expected to
commence this month.
Copper Concentrate Bulk Handling Update
After careful consideration of various bulk shipping alternatives to
smelters, the Rotainer system has been chosen for delivery of concentrate
into bulk shipping carriers, using the existing Massawa container port.
Rotainer and Rotainer equivalent systems are proven in both the iron ore and
copper concentrate industry, mainly in Australia.
Concentrate will be trucked in specially built, Rotorcon reusable intermodal
containers from the Bisha Mine site to the port of Massawa, and stacked at
the existing container facility. Container trucking will be contracted and
no specialized prime mover (truck) or trailer equipment is required. The
copper concentrate containers will be discharged into the bulk carriers
using Rotainer`s Lid-Lift crane equipment which rotates the container a full
360 degrees after lifting the lid.
The Rotainer system is designed with industry leading dust suppression
allowing Bisha to operate out of the existing Massawa container port. The
environment is a key focus for the State of Eritrea and the Rotainer system
meets both the needs for copper concentrate export while setting high
environmental standards for mining operations in Eritrea.
The estimated capital cost of the Rotainer system and containers is expected
to be under $25 million.
Effectively this Rotainer system is in substitution for the need to develop
dedicated bulk handling facilities at the port of Massawa for the
<
http://www.nevsun.com/projects/bisha-main/> Bisha concentrate. The Company
will take responsibility of the cost and control for commissioning of the
Rotainer system, which reduces schedule risk. Nevsun is confident that the
Rotainer system will be operational for copper concentrate shipping,
starting in mid-2013.
Cash on hand and from Bisha operations is more than sufficient to pay for
the remaining cost of approximately $80 million for both the copper plant
and the rotainer system.
Forward Looking Statements: The above contains forward-looking statements
regarding future cash flow, the growth potential of the company and future
dividend payments. Forward-looking statements are frequently, but not
always, identified by words such as "expects," "anticipates," "believes,"
"intends," "estimated," "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:nsu_at_kincommunications.com> nsu_at_kincommunications.com
Website: <
http://www.nevsun.com/> www.nevsun.com
Received on Tue Jun 19 2012 - 17:47:25 EDT
