July 24, 2012
Nevsun Announces Increased Base Metals Reserves
VANCOUVER, BC - Nevsun Resources Ltd. (TSX:NSU)(NYSE MKT:NSU)
HIGHLIGHTS
- 4.09% copper grade in supergene ore reserves estimate
- 6.33% zinc grade in primary ore reserves estimate
- Total contained copper in probable reserves increased by 6%
- Total contained zinc in probable reserves increased by 38%
Nevsun Resources Ltd. (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 Mine ("Bisha") in Eritrea. Expressed as contained metal, the copper 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 news release.
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 Northwest Zone 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 @ 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 Harena. 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.
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