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Resource Clips

Posts tagged ‘Nevsun Resources Ltd (NSU)’

The golden Horn of Africa

March 7th, 2013

Sunridge, Nevsun, Chalice drill Eritrean gold, copper, zinc, silver

by Greg Klein

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While continuing the Asmara feasibility study in Eritrea, Sunridge Gold TSXV:SGC announced on March 7 a new near-surface discovery at Kodadu, four kilometres east of Asmara’s Debarwa deposit. With assays complete on 21 reverse-circulation holes, the company now plans an initial resource estimate for the potential deposit.

True widths for the two zones were estimated at about 70%. Some highlights from the gossan zone include:

Sunridge, Nevsun, Chalice drill gold, copper, zinc, silver in Eritrea

Gossan outcrops helped draw Sunridge Gold’s attention
to the Kodadu zones near its Asmara project in Eritrea.

  • 1.71 grams per tonne gold over 51 metres
  • 1.77 g/t over 31 metres
  • 1.66 g/t over 22 metres
  • 1.06 g/t over 32 metres
  • 1.08 g/t over 27 metres
  • 1.05 g/t over 20 metres
  • 1.18 g/t over 17 metres.

The top-most intercepts started at surface while the deepest stopped at a down-hole depth of 51 metres.

Some shear zone highlights include:

  • 1.15 g/t over 33 metres
  • 2.3 g/t over 16 metres
  • 0.99 g/t over 21 metres
  • 0.64 g/t over 15 metres
  • 0.81 g/t over 11 metres
  • 1.19 g/t over 1 metre.

Again, the top-most interval began at surface. The deepest ended at 79 metres down hole.

The company now wants to “rapidly define a resource that could be mined as feed” to a processing facility near Asmara’s Emba Derho copper-zinc-gold-silver deposit, 25 kilometres away, which would also serve three nearby satellite deposits. Three of Asmara’s four deposits would be open pit operations. The fourth, Adi Nefas, would go underground.

Asmara’s feasibility study is slated for Q2 release and already the company is forecasting improvements to last May’s pre-feas. Using a 10% discount rate, that study projected a pre-tax net present value of $555 million and a 27% internal rate of return. With initial capital costs then estimated at $489 million, payback would have come in 3.5 years, while the life of mine would last 15.25 years.

Now Sunridge is considering a staged start-up to cut capex and get to the ore earlier. Mining would begin with copper, gold and silver from Debarwa’s supergene (higher-grade) zone. Work would progress with heap leach gold production at the Emba Derho plant, processing ore from the Debarwa and Gupo deposits as well as Emba Derho. The next stage would involve mining and processing the remaining copper supergene ore from Debarwa and Emba Derho. With full production in year three, Asmara would produce an estimated annual average of 70 million pounds (31,750 tonnes) copper, 140 million pounds (63,500 tonnes) zinc, 31,000 ounces gold and 997,000 ounces silver over the mine’s first eight years.

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Quarterly records

October 9th, 2012

Gold producers with higher ounces for Q3

by Greg Klein

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With third quarter results rolling in, some miners are competing with each other to announce record-high gold ounces for their companies. Here’s a look at five companies that released Q3 production numbers on October 9.

Q3 marked a record 32,137 gold ounces for Avion Gold’s TSX:AVR Tabakoto open-pit and underground operation in Mali. That’s an increase from 28,640 ounces in Q2 and the third consecutive quarterly record. The company now expects to exceed its 2012 guidance of 95,000 to 102,000 ounces. Avion produced 91,200 ounces in 2011.

Gold producers with higher ounces for Q3

Liquid gold pours from Nevsun Resources’ Bisha Mine, which produced 98,000 ounces in Q3 2012.

Avion holds an 80% interest in Tabakoto. The company emphasizes that its southern Mali operation had uninterrupted production despite the sectarian violence centred in the country’s north following a March 22 military coup.

The company closed October 9 at $0.88, two cents above the day’s opening price. With a market cap of $390.71 million, Avion’s 52-week high and low are $2.31 and $0.41.

Another Q3 record-setter, St Andrew Goldfields TSX:SAS reported 25,742 gold ounces from three mines in Ontario’s Timmins Mining District. The Q2 total was 23,106 ounces. Q3’s breakdown comes to 13,147 ounces from the Holt underground mine, 5,408 ounces from the Holloway underground mine and 7,187 ounces from the Hislop open pit. All three share the Holt Mill.

Last month the company re-filed documents on Sedar to correct an overstatement of the inferred category for Holt and Holloway. The corrected estimate for Holt shows 1.09 million ounces measured and indicated, and 229,000 ounces inferred. The measured and indicated numbers include proven and probable reserves of 415,000 ounces. Holloway’s corrected estimate shows 110,000 ounces measured and indicated, and 452,000 inferred. M&I includes proven and probable reserves of 31,000 ounces. These figures correct an overstatement of 665,000 inferred ounces for Holt and 44,000 inferred ounces for Holloway.

Nevertheless the company maintains it’s on track to meet 2012 guidance totalling between 90,000 and 100,000 ounces for all three mines.

St Andrew opened October 9 at $0.47 and closed on $0.465. SAS has a market cap of $171.23 million, a 52-week high of $0.65 and a low of $0.305.

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Chalice, Zara report Eritrea Gold Results up to 39.25 g/t over 3m

December 23rd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningChalice Gold Mines Ltd TSX:CXN and Zara Mining Share Company announced assays from the Koka South discovery adjacent to their Zara Gold Project in Eritrea. Results include

39.25 g/t gold over 3 metres
(including 115.33 g/t over 1 metre)
21.38 g/t over 5 metres
9.73 g/t over 7 metres
(including 49.64 g/t over 1 metre)
6.06 g/t over 5 metres

The project is a joint venture under Zara Mining SC, the operating company. Under the agreement, the Eritrean National Mining Corp will pay Chalice US$32 million for a 30% interest. ENAMCO will also pay Chalice approximately $2 million towards exploration costs on the Zara licences outside the Koka licence. Following completion of the agreement, the Zara Project’s ownership structure will be 60% Chalice, 30% ENAMCO and 10% free carried interest. Chalice and ENAMCO will pay development costs for Koka and exploration costs for the Zara licences on a two-thirds/one-third basis.

Managing Director Doug Jones tells, “They’re pretty encouraging results. Koka South is immediately adjacent to the Koka open pit, where we’ve got 760,000 ounces mineable at five grams. It looks like Koka South is a continuation of that system, whereas the Koka Main mineralization tends to be over a width of 15 to 20 metres. It seems to extend down into the Koka South area, but you’re getting significantly higher results, as you can see from these results and the previous results in early November.

The Chinese are already heavily invested in Eritrea. It’s not a surprise that they’re quite keen on acquiring additional assets there. And there’s quite a strong political link between Eritrea and China—Doug Jones

“We’ve got assays from three more holes to come for this season. Holes 236 and 237 look fairly promising because they have visible mineralization, and that does seem to confirm that mineralization continues to the south, at depth. It seems that close to surface at Koka South we’re not seeing the mineralization in the surface geochemistry. There were a couple of holes that had no significant intersections near surface. But certainly the deeper holes have good-looking visible mineralization.

“We’re continuing to expand; 760,000 ounces, even at five grams, is not a big reserve. We’d like to get that over a million ounces. Given that Koka South is so close to the pit, it could be a significant material addition to the Koka operation. It’ll probably be underground, though. I think the strip ratio there would preclude an open pit.

“About two and a half kilometres further south we’ve got the Debre Konate prospect, where we had some pretty interesting results that we released December 15. That’s a pretty exciting prospect too, with very robust soil anomalies. The Debre Tsaeda prospect looks interesting too. So we’ve got a big drill program planned for next year,” Jones says.

Chalice announced December 12 it had signed a non-binding letter of intent proposing terms to sell its 60% share in Zara. Jones acknowledges widespread speculation that a Chinese company was involved. But he declined to elaborate publicly.

“The Chinese are already heavily invested in Eritrea,” he points out. “It’s not a surprise that they’re quite keen on acquiring additional assets there. And there’s quite a strong political link between Eritrea and China.

“The UN sanctions on Eritrea have had a limited effect on exploration and mining so far,” he reports. “It’s been suggested in some circles that the sale of this project results from the sanctions. But it has nothing to do with the sanctions. The press release from Nevsun TSX:NSU [December 6] pointed out that the wording of the sanctions has virtually no impact on the mining industry. I think that it just reinforces aversion in people who are already risk-averse. But I don’t think people who were prepared to fund projects in Eritrea six months ago are going to change their minds because of renewed or extended sanctions. Certainly in terms of our day-to-day activities, it’s not going to affect us at all.

“If the sale goes through, we’ll be looking for a new project,” Jones says. “I think there’ll be a lot of opportunity next year. The way the market is, I think it’s going to be difficult for a lot of juniors to fund their projects. If we have something in the order of $80 million to $100 million, that gives us the ability to leverage it into new projects. We’d be looking for relatively advanced projects.

“We were planning to take Koka into production. We put everything into place except the funding, then this offer came through. We were already transitioning from a purely exploration company towards development with the addition of a couple of mining engineers, and more additions of that sort were planned.

“We’d like to diversify our political risk. Regardless of whether we think Eritrea is a good country to work in, the market has its own view. Along with Nevsun, we’ve been hammered fairly hard through that perception. We’ll certainly look at opportunities inside Eritrea, but we’ll look at others as well, to diversify our political risk.”

Jones concludes, “We’re in an interesting position at the moment. We have a good project which we could take through to production. We’re in the process of being made an offer. If we go through with that, it should leave us with a significant amount of money which will open up a lot of opportunities going into the new year. With the market the way it is, I think a lot of the juniors are going to be starved for funds. So if we have cash in the kitty, we’ll be able to take on some new projects.”

View Company Profile

Chalice Gold Mines Ltd
Joanne Jobin
North American IR Manager

or Tim Goyder
Executive Chairman
or Doug Jones
Managing Director

by Greg Klein

Nevsun reports Eritrea Copper Assays as high as 1.13% over 103.8m

November 3rd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningNevsun Resources Ltd TSX:NSU announced drill results from its Bisha Main deposit in Eritrea. Highlights include

0.76% copper and 11.84% zinc over 88.5 metres
0.84% copper and 8.29% zinc over 94.7 metres
0.86% copper and 10.71% zinc over 85.9 metres
1.13% copper and 4.98% zinc over 103.8 metres
1.27% copper and 5.78% zinc over 99.6 metres

CEO Cliff Davis remarked, “Bisha is a world-class VMS deposit that we see evolving into a world-class VMS mining camp. The high-grade zinc and copper intercepts released today are part of an ongoing program to grow organically through drilling known mineralization in and around the Bisha operation.”

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Kin Communications

by Ted Niles

Nevsun reports Eritrea Copper Assays including 8.26% over 37.5m

October 27th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningNevsun Resources Ltd TSX:NSU announced assay results from its Bisha project in Eritrea, East Africa. Highlights include

0.79% copper over 12 metres (including 1.54% over 3 metres)
8.26% over 37.5 metres (including 16.99% over 10.5 metres)
0.58% over 19 metres (including 1.12% over 6.5 metres)
1.29% over 12 metres
0.5% over 66 metres (including 2.28% over 3 metres)

A resource and reserve re-statement for the Bisha Main deposit is expected by 1Q 2012.

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Kin Communications

by Ted Niles

Nevsun reports Eritrea Gold Assays including 11.78 g/t over 18m

March 3rd, 2011

Nevsun Resources Ltd TSX:NSU announced drill results from the Harena Deposit near its Bisha Main Deposit in Eritrea, East Africa. Highlights include 11.78 g/t gold over 18 metres, 4.09 g/t over 31.9 metres, 3.34 g/t over 51 metres, 2.73 g/t over 60 metres, 3.89 g/t over 18 metres and 3.19 g/t over 24 metres.

Nevsun views the Harena deposit as a very likely source of supplemental feed for the processing plant at Bisha for both the gold and base metal phases.

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Kin Communications

by Ted Niles

Sunridge reports Eritrea Assays up to 5.72% Copper, 2.13 g/t gold over 31.9m

February 3rd, 2011

Sunridge Gold Corp TSXV:SGC announced assays from the Debarwa Deposit on its Asmara Project in Eritrea, East Africa. Highlights include 5.72% copper and 2.13 g/t gold over 31.9 metres (including 17.99% copper over 6 metres), 11% copper and 4.19 g/t gold over 9.3 metres, 16.22% copper and 3.22 g/t gold over 13.5 metres (including 26.04% copper over 3.3 metres), 14.9% copper and 2.15 g/t gold over 16.7 metres, and 11.22% copper and 1.75 g/t gold over 25.5 metres.

VP Business Development Greg Davis tells, “We first began working in Eritrea in 2003. Since then we’ve drilled about 150,000 metres, spending just shy of $30 million. We’ve established four deposits so far. Three of them are VMS with indicated resources on them, one of them is a gold deposit with an inferred resource. We began in November a feasability study on the Debarwa VMS deposit. It’s an extremely high grade copper-gold-zinc VMS deposit. As part of that study we’re looking at what we call the DSO Zone which is approximately 18% to 20% copper, and we’re looking at starting mining operations by mining it and direct shipping it. The feasability study will also consider the rest of the deposit.

“With that DSO option I mentioned, Debarwa is tailor-made for a little company like us to get into production. However most of our value is in the northern deposit which contains the large Emba Derho VMS deposit which is 62.5 million tonnes in the current indicated resource. We’ve already begun work on it, but we’ll announce who we’ve awarded the contract to early next week. The feasability study and the prefeasability study for the northern projects are scheduled to be completed around October of this year.

“The assays that were released today are amazing. Some of the highest copper grades you will see anywhere in the world. It’s the same kind of geology as the Bisha Deposit—Nevsun‘s project. They announced earlier this year that they began to pour gold and they’re in the process of commissioning the mine which you’ll likely see sometime in the next month. Debarwa is very similar; it has a gold oxide cap from surface down to about 30 metres, a supergene copper zone from about 30 metres down to about 60 metres, and then primary sulfides from 60 metres open at depth.

“The outlook for the project is excellent. These VMS deposits in Eritrea are very prolific and we still have a lot of exploration outside to go.We can get into production with fairly low capital costs. Emba Derho would have much larger capital costs but we feel that we would be able to raise the money to build the mine.

“It’s a dream to work and operate in Eritrea. All operators will say the same thing. It really is a dream. You’ve got the full support of everyone in the country—all levels of government. The [common] perception is something that’s been keeping the share price of Nevsun and us and other operators down, however I think that’s about to change with operations beginning at Bisha. I think the world mining community will see that this is a great place to operate.”

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Greg Davis
VP Business Development

by Ted Niles