Nevsun Closes Acquisition of Mogoraib Exploration License Near Bisha Mine
October 10, 2012
http://www.nevsun.com/news/2012/october10/
HIGHLIGHTS
* Acquisition agreement announced August 1, 2012 now closed
* Exploration license 97.4 square kilometers
* Includes the historic copper-zinc resources at the Hambok deposit
* Hambok has open pit potential 16 km southwest of Bisha processing
plant
<
http://www.nevsun.com/> Nevsun Resources Ltd. (TSX: NSU / NYSE MKT: NSU)
("Nevsun") today is pleased to announce that the Bisha Mining Share Company
("Bisha"), a 60% owned subsidiary of Nevsun, has closed its previously
announced agreement to acquire the Mogoraib River exploration license in
Eritrea. Pursuant to the Agreement announced August 1, 2012, Bisha has paid
Sanu Resources, a subsidiary of NGEx Resources Inc. of Vancouver, US$5
million.
Nevsun CEO Cliff Davis commented: "Bisha is commencing a strategic review of
regional exploration potential that as a minimum will include further work
on the historic resources at Hambok. In addition to the Mogoraib license,
Bisha also plans to apply for further exploration area contiguous to the
Bisha Mine to support a regional generative exploration program. We believe
the Bisha region has excellent potential for the discovery of additional VMS
deposits."
The Mogoraib license is 97.4 square kilometers in area and includes the
Hambok copper-zinc deposit. The Hambok deposit is located 16 km southwest of
the Bisha Mine (Figure 1). The Company believes that the Hambok deposit is
potential additional feed for the Bisha plant. If additional exploration is
successful and reserves are identified, then Bisha may consider increasing
plant capacity when it adds a zinc flotation plant to the copper plant in
2015 or 2016.
A historical resource estimate for Hambok (see Table 1) was filed in a NI
43-101 technical report on March 27, 2009 by Sanu Resources Ltd. A qualified
person has not done sufficient work to classify the historical estimate as
current mineral resources or mineral reserves and the Company is not
treating the historical estimate as current mineral resources or mineral
reserves.
Table 1: Historic Hambok Resource Estimate within the Mineralized Shell
[Source: NI 43-101 Technical Report, Effective January 23, 2009 (1)]
Indicated
Cut-off Zn % Grade > Cut-off
Tonnes > Cut-off
Cu (%)
Zn(%)
Au (g/t)
Ag (g/t)
0.75
10,700,000
0.98
2.25
0.20
6.84
2.00
5,100,000
1.12
3.24
0.21
7.81
Inferred
Cut-off Zn % Grade > Cut-off
Tonnes > Cut-off
Cu (%)
Zn(%)
Au (g/t)
Ag (g/t)
0.75
17,000,000
0.85
1.74
0.19
5.89
2.00
5,100,000
0.96
2.81
0.19
6.20
1. The historic mineral resources estimate set out in the table above have
been extracted from NI 43-101 technical report dated January 23, 2009, by
Messrs. G. H. Giroux, P Eng. and C. Tucker Barrie, P.Geo., who are qualified
persons under NI 43-101. Assumptions in the NI 43-101 report included: (i)
metals prices - Cu at $1.30/lb; Zn at $0.79/lb; Au at $675/oz; Ag at $10/oz;
(ii) recoveries - Cu at 85%; Zn at 84%; Au at 36%; Ag at 29%, however no
metallurgical test work had been performed.
Details and additional notes can be found in the Hambok Technical report
filed March 27, 2009 on SEDAR <
http://www.sedar.com> www.sedar.com under
Sanu Resources Ltd.
Forward Looking Statements
The above contains forward-looking statements regarding potential
exploration results, expansion of the Bisha mill, historical estimated grade
and estimated mineral resources and potential for mining such economically
unproven resources. 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. Information concerning the interpretation of
drill results and mineral resource and reserve estimates also may be deemed
to be forward-looking statements, as such information constitutes a
prediction of what mineralization might be found to be present if and when a
project is actually developed. 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, the risks
that (i) any of the assumptions in the historical resource estimates turn
out to be incorrect, incomplete, or flawed in any respect; (ii) the
methodologies and models used to prepare the resource and reserve estimates
either underestimate or overestimate the resources or reserves due to hidden
or unknown conditions, (iii) the mine operations are disrupted or suspended
due to acts of god, internal conflicts in the country of Eritrea, or
unforeseen government actions; (iv) the Company experiences the loss of key
personnel; (v) the mine operations are adversely affected by other political
or military, or terrorist activities; (vi) the Company becomes involved in
any material disputes with any of its key business partners, lenders,
suppliers or customers; (vii) the Company is subjected to any hostile
takeover or other unsolicited attempts to acquire control of the Company;
(viii) the Company is subject to any adverse ruling in any of the pending
litigation to which it is a party; or (ix) the Company incurs unanticipated
costs as a result of the transition from the oxide phase of the Bisha mining
operations to the copper phase in 2013. Other risks are more fully described
in the Company's most recent Management Discussion and Analysis, which is
incorporated herein by reference. 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, except as required by law.
For the reasons set forth above, investors should not place undue reliance
on forward-looking statements.
Please see the Company's Annual Information Form for the fiscal year ended
December 31, 2011 and the Company's Management Discussion and Analysis for
the quarter ended June 30, 2012 for a more complete discussion of the risk
factors associated with our business.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is a Vancouver-based mining company with an operating
mine in Eritrea. Nevsun's 60%-owned Bisha Mine commenced gold production in
February 2011 and is scheduled to transition to copper/gold production in
2013. Management expects the Bisha Mine will rank as one of the highest
grade open pit base metal deposits in the world.
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
Figure 1 - Map of Mogoraib License and Bisha Area
http://www.nevsun.com/news/2012/october10/map.jpg
Received on Wed Oct 10 2012 - 15:58:53 EDT
