Nevsun Resources
TICKER: NSU:US/TSX
Nevsun Resources Ltd. is a gold and base metal explorer/developer with a focus on developing mining projects in Africa. Nevsun is currently focused on advancing its high grade gold, copper and zinc Bisha Project in Eritrea.
The Bisha volcanic-associated massive sulphide (VMS) deposit is located in a newly discovered VMS district in western Eritrea. Nevsun completed a feasibility study for the Bisha project in late 2006. The Bisha Mining and Stability Agreements were signed in December 2007 and the Bisha Mining License was awarded in January 2008. The mining license covers an area of 16.5 square kilometers (includes the Bisha Main Zone deposit and the Northwest Zone deposit) within a mining agreement area of approximately 39 square kilometers. The Company retains an exploration license of approximately 94.5 square kilometers which includes the Harena deposit.
With recent advances in preliminary and detailed engineering design at Bisha, an update to capital costs (approx. US$250m) and a revised financial model (approx. 1.2 years payback at current metal prices), the Company is entirely focused on advancing the Bisha Project to production by early 2010. Nevsun and its partner, ENAMCO (Eritrean National Mining Corporation) expect to finance the Bisha Mine using their existing cash resources and debt financing.
The Bisha Mine will be a low cost gold producer for its first two years of production (approx. 430,000 ounces gold per year) and a low cost high grade copper concentrate producer (containing approx. 75,500 tonnes of contained copper metal per year) for a further three years. Thereafter the mine will produce separate zinc and copper concentrates.
The Company's Eritrean portfolio provides a good base for future corporate growth.