Canadian gold miner Nevsun Resources Ltd. (NSU) has unveiled first-quarter 2013 production results from its Bisha mine in Eritrea, East Africa. The company produced 42,000 ounces of gold in the quarter, at par with its expectations. Nevsun expects to produce 80,000 to 90,000 ounces of gold from the mine in first-half 2013.
Nevsun mined 475,000 tons of ore during the first quarter. Waste mined was 1,925,000 tons. Moreover, Nevsun milled 432,000 tons of ore at 4.14 g/t (grams per ton) gold. The results include a planned two-week mill shutdown for re-lining and readying for the copper transition later this year.
Nevsun is a high grade, low cost gold producer. The company has a 60% interest in the Bisha mine, which ranks as one of the highest grade open pit mines in the world. Nevsun’s significant development projects include the construction of Bisha Mine copper flotation circuit and exploration of the Northwest Zone, which is a satellite deposit to Bisha.
Bisha produced 313,000 ounces of gold last year, exceeding the company’s expectations. The mine is expected to shift to low cost copper/gold production this year. According to Nevsun, the copper transition is progressing as planned with plant commissioning expected in mid-2013.
Nevsun invested $64 million in the copper phase expansion during 2012. It expects copper production of roughly 200 million pounds in 2014.
Nevsun, which currently retains a short-term Zacks Rank #3 (Hold), will report its full financial results in mid-May 2013.
Other companies in the mining industry with favorable Zacks Rank are Atlatsa Resources Corporation (ATL), Anglo American Platinum Ltd. (AGPPY) and Materion Corporation (MTRN). All of them hold a Zacks Rank #2 (Buy).
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