Nevsun Announces Increased Base Metals Reserves
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/24/12 -- Nevsun Resources Ltd. (TSX: NSU)(NYSE MKT: NSU) -
HIGHLIGHTS
. (the "Company or "Nevsun") today announced new increased base metal Canadian National Instrument 43-101 ("NI 43-101") compliant mineral resources and reserves estimates at its 60%-owned ("Bisha") in Eritrea. Expressed as contained metal, the reserves estimate is 6% higher and the zinc reserves estimate is 38% higher as of May 31, 2012, compared with the previous reserves estimate effective date January 1, 2011. Management will hold a conference call on Tuesday, July 24, 2012 to discuss the results (details below).
Total mineral reserves estimate consists of 26.5 million tonnes with the oxide portions grading 5.79 gram per tonne ("g/t") gold for a total of 167,000 troy ounces of gold, the supergene portions grading 4.09% copper for a total of 579 million pounds of copper, and the primary portions grading 1.09% copper and 6.33% zinc for a total of 462 million pounds of copper and 2,680 million pounds of zinc respectively. A tabulation of total mineral resources and mineral reserves by classification is appended at the end of this .
The new resources and reserves estimates resulted from 27,000 meters of diamond drilling in 2011 and from adjustments to the mine plan based on the new resource model. The reserves estimate underscores the fact that the Bisha Mine is one of the highest grade open pit base metals deposits in the world.
Nevsun intends to continue drilling while re-starting generative exploration in 2012 with the objective of further increasing reserves and extending the mine life at Bisha. An approximately 8,000 meters diamond drilling program is progressing at the which is 1.5 km from the existing Bisha Main pit.
Nevsun expects base metals production at Bisha to commence in mid-2013 and continue until 2024. The Mine has been producing gold since 2011 but, as previously disclosed, management currently expects Bisha to complete oxide gold production in the first quarter of 2013. This new mineral reserves estimate predicts 167,000 ounces of remaining oxide gold reserves (900 kt (at) 5.78 g/t) as of May 31, 2012. Based on the 2012 guidance and this reserves estimate, management expects between 30,000 and 50,000 payable ounces of oxide gold would remain to be mined in Q1 2013.
Nevsun reiterates forecast full year 2012 gold production guidance of 240,000 to 260,000 ounces and management intends to re-evaluate this guidance in August when reviewing the full quarter financial results with the added benefit of observing actual mining results for the month of July.
As part of the mineral resources and reserves estimation review, the Company retained AGP Mining Consultants Inc. ("AGP"), an independent mining and geological consulting firm that had not previously reported on the property. AGP estimated the new mineral resources at Bisha. AGP's estimate was in turn reviewed by an independent third party engineering company. AMEC Americas Limited estimated the new mineral resources at . AGP also prepared the new combined Bisha and Harena mineral reserves estimate. An NI 43-101 technical report will be filed within 45 days on SEDAR.
Table 2: Payable Production Profile Projections (100% Project Basis)
The following production profile was developed by AGP as a possible scenario, without optimizing the mine plan, and, compared to previous production profiles, would result in accelerating the timing of zinc expansion capital. Optimization work, which the Company intends to perform over the remainder of the year, is required before the Company decides on whether to accelerate zinc expansion.
Table 3: Estimated Bisha Net Financial Impact (100% Project Basis in USD)
The net impact of the above production profile, and other mine plan changes on the Bisha Project cash flow, on a go-forward basis, is demonstrated below using different metals prices. These are all on an after-tax, royalty and CAPEX basis:
Conference Call Details
The Company will hold a conference call on Tuesday, July 24, 2012 at 8AM Vancouver / 11AM Toronto, New York / 4PM London, to discuss the quarterly results. Dial in details are as follows:
North America: 416-695-6622 / 1-800-766-6630
UK: 00800-4222-8835 (Toll Free)
Other International: +1 416-695-6622
The conference call will be available for replay until August 6, 2012 by calling +1 905-694-9451 / 1 800-408-3053 and entering passcode 3153642.
Qualified Persons Statement
All mineral resources and mineral reserves estimates in this report have been prepared by the Qualified Persons described below in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects and the Canadian Institute of Mining, Metallurgy and Petroleum's Classification System (CIM Definition Standards for Mineral Resources and Mineral Reserves 2010).
The information in this press release that relates to Mineral Resources was prepared by Michael Waldegger, P.Geo., of AGP Mining Consultants Inc. for Bisha and by David Thomas, P.Geo., of AMEC Americas Limited for Harena. The information in this report that relates to Mineral Reserves was prepared by Jay Melnyk, P.Eng., of AGP Mining Consultants Inc.
Darin Wasylik, P.Geo., and Frazer Bourchier, P.Eng., are Nevsun's designated Qualified Persons and have reviewed and approved the contents of this press release.
Sample preparation and analysis was done by ALS Chemex in Vancouver, Canada.
Cautionary Notes to Investors - Reserve and Resource Estimates
In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed or incorporated by reference in this news release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines"). The definitions of mineral reserves and mineral resources are set out in our disclosure of our mineral reserve and mineral resource estimates in our Annual Information Form.
The Company uses the terms "mineral resources", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". While those terms are recognized by Canadian securities regulatory authorities, they are not recognized by the United States Securities and Exchange Commission (the "SEC") and the SEC does not permit U.S. companies to disclose resources in their filings with the SEC.
Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral reserve, or is or will ever be economically or legally mineable or recovered.
Forward-Looking Statements
The above contains forward-looking statements regarding increases in estimated grade and mineral resources and reserves, future production profiles, and the effect of future production profiles on future cash flows and net present value. 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 on which the Company's revised resource and reserve estimates are based 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 2012. 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 March 31, 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
To view "Figure 1 - Cross Section of Bisha Main Zones" accompanying this press release, please click on the following link:
Gold reserves are contained primarily in an oxide ore zone and base metals reserves are contained in supergene and primary sulphide zones which underlie the gold oxide. See Figure 1 above for an illustration of the zones. The adjusted mine plan anticipates the Bisha Main pit extending to a depth of 290 meters below surface, 30 meters deeper than the previous ultimate pit and incorporates an additional pit 115 meters deep at Harena, which is located 9 kilometers from Bisha Main. See Figure 2 below for a map of the licensed areas.
To view "Figure 2 - Bisha Mine Licensed Areas" accompanying this press release, please click on the following link:
Contacts:
Kin Communications
604 684 6730 or Toll free: 1 866 684 6730
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Datum: 24.07.2012 - 10:00 Uhr
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