Bisha Mines Generates $100 Million in Less than 2 Months

Nevsun has accumulated significant cash during Q1

Nevsun Q1 2011 Operating Highlights

Nevsun Resources Ltd. (TSX:NSU / NYSE Amex: NSU) is pleased to announce the Bisha mine in Eritrea processed 461,000 tonnes of ore yielding 75,000 ounces of gold in doré in the first quarter (Q1) 2011, during the same period it was ramping up to commercial production. Nevsun has accumulated significant cash during Q1, with a cash balance of $100 million as of March 31, 2011.

Note that present market price for an ounce of Gold is above 1,400 USD.

The Bisha mine continues to perform very well and is now producing over 1,000 oz gold per day (which is equivalent to $1.4 Million) . The table below demonstrates the successful ramp up to commercial production in January and February and the first month of full operations in March.

  Jan 2011 Feb 2011 Mar 2011 Total Q1 2011
  Pre-Production(1) Production  
Tonnes milled 126,000 160,000 175,000 461,000
Recovery, % of gold 86% 88% 89% 88%
Gold in doré, ounces 16,000 25,000 34,000 75,000
Gold price realized, per oz n/a(2) $1,390 $1,430 $1,405
(1) for accounting purposes, sales from ounces produced prior to March 1, 2011 are considered pre-production and capitalized
(2) no gold sales in January

Nevsun’s cash accumulation since December 31, 2010 reflects ounces shipped and paid by the refiner to March 31, 2011. The last shipment in the quarter was March 28, 2011.

Full Q1 results including costs and profitability are expected on or before May 11, 2011. (Source: https://www.nevsun.com/news/2011/april06/)