By Nevsun,
Nevsun Resources Ltd. (TSX: NSU / NYSE MKT: NSU) is pleased to announce gold production results of 34,900 ounces (990 Kg) for the quarter ending June 30, 2013, in line with 2013 production guidance of 110,000 ounces of gold in addition to 30,000 to 50,000 pounds of copper in concentrate.
Cliff Davis, President and CEO stated: “We are particularly proud of the safety record at the Bisha Mine, with a milestone of 12 million man hours achieved without a lost time injury. The last LTI was in Q4 of 2011.”
Q2 2013 OPERATING HIGHLIGHTS
- Safety milestone reached – 12 million man hours without a lost time injury
- Gold production of 34,900 ounces in line with guidance
- Copper expansion project completed on-time and under budget
- Copper plant commissioning with pyrite sand on schedule
- Milled 455,000 tonnes at 2.75 g/t gold and 80% recovery
A summary of the Company’s second quarter operating results are as follows:
| Q2 2013 3 months ending June 30 |
Q1 2013 3 months ending March 31 |
Year-to-Date 2013 6 months ending June 30 |
|
| Mining | |||
| Ore mined, tonnes1 | 425,000 | 475,000 | 900,000 |
| Waste mined, tonnes | 1,647,000 | 1,925,000 | 3,572,000 |
| Strip ratio (calc in BCM’s) | 4.5 | 5.1 | 4.8 |
| Milling | |||
| Ore milled, tonnes | 455,000 | 432,000 | 887,000 |
| Feed grade, g/t | 2.75 | 4.14 | 3.43 |
| Processing | |||
| Recovery % of gold | 80% | 79% | 79% |
| Gold in doré, ounces poured | 34,900 | 42,300 | 77,200 |
| Gold ounces in PM2 concentrate | 2,700 | – | 2,700 |
| Silver ounces in PM2 concentrate | 277,000 | – | 277,000 |
| —————————————————————————————————————————————- | |||
- Q2 2013 mining tonnage includes both oxide ore from Harena (249,000 tonnes) and from Bisha Main pit (176,000 tonnes) of which the latter is inclusive of the transitional pyrite sands ore (93,000 tonnes)
- PM is the precious metals concentrate produced from flotation of 56,000 tonnes transitional pyrite sand materials with the tails from this flotation directed to the CIL for gold in doré ounces poured
Waste mined in the quarter was 1,675,000 tonnes for a strip ratio of 4.5 to 1 by volume. Waste stripping remains behind plan however this is not expected to have an adverse impact on copper production through to the end of 2014. Actions are in place to rectify the underlying equipment delivery and maintenance issues. The northeast layback has been delayed such that the oxide ore below the northeast wall will likely be mined and stock piled for processing in future years. The Company’s 2013 guidance remains unchanged.
The 455,000 tonnes milled was inclusive of 56,000 tonnes of the transitional pyrite sand ore processed commencing June 15, 2013. Pyrite sand processing, which serves to partially commission the copper flotation plant, is progressing to plan with minor problems rectified. To date, the pyrite sand is performing to expectations for metallurgical performance.
Gold dore poured was 34,900 ounces in the quarter. Starting June 15 an additional 2,700 ounces gold and 277,000 ounces silver was produced in concentrate. The precious metals concentrate will either be direct sold or blended with copper concentrate.
Full financial results will be released in mid August.
Corporate Development
Nevsun continues to review acquisition opportunities in the gold and copper sectors however the Company has not yet identified an appropriate investment with an all-in economic return suitable for our shareholders. Management continues to apply strict protocol to this process.
