VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct 10, 2012) - Nevsun Resources Ltd. (NSU.TO)(NYSE MKT:NSU)(NYSE Amex:NSU) -
- 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
Nevsun Resources Ltd. ("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)]|
|Cut-off Zn % Grade > Cut-off||Tonnes > Cut-off||Cu |
|Cut-off Zn % Grade > Cut-off||Tonnes > Cut-off||Cu |
|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 www.sedar.com under Sanu Resources Ltd.
To view Figure 1 please click on the following link: http://media3.marketwire.com/docs/NSU1010.pdf
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