By Kin Communications inc.,
Nevsun Resources Ltd. (“Nevsun”) today is pleased to announce that the Bisha Mining Share Company (“Bisha”), a 60% owned subsidiary of Nevsun, has closed its previously announced agreement to acquire the Mogoraib River exploration license in Eritrea.
Pursuant to the Agreement announced August 1, 2012, Bisha has paid Sanu Resources, a subsidiary of NGEx Resources Inc. of Vancouver, US$5 million.
The Mogoraib license is 97.4 square kilometers in area and includes the Hambok copper-zinc deposit. The Hambok deposit is located 16 km southwest of the Bisha Mine.
HIGHLIGHTS
- Acquisition agreement announced August 1, 2012 now closed
- Exploration license 97.4 square kilometers
- Includes the historic copper-zinc resources at the Hambok deposit
- Hambok has open pit potential 16 km southwest of Bisha processing plant
Nevsun CEO Cliff Davis commented:
“Bisha is commencing a strategic review of regional exploration potential that as a minimum will include further work on the historic resources at Hambok. In addition to the Mogoraib license, Bisha also plans to apply for further exploration area contiguous to the Bisha Mine to support a regional generative exploration program. We believe the Bisha region has excellent potential for the discovery of additional VMS deposits.”
The Company believes that the Hambok deposit is potential additional feed for the Bisha plant. If additional exploration is successful and reserves are identified, then Bisha may consider increasing plant capacity when it adds a zinc flotation plant to the copper plant in 2015 or 2016.
A historical resource estimate for Hambok (see Table 1) was filed in a NI 43-101 technical report on March 27, 2009 by Sanu Resources Ltd. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves.
Table 1: Historic Hambok Resource Estimate within the Mineralized Shell [Source: NI 43-101 Technical Report, Effective January 23, 2009 (1)]
Indicated
| Cut-off Zn % Grade > Cut-off | Tonnes > Cut-off | Cu (%) | Zn(%) | Au (g/t) | Ag (g/t) |
| 0.75 | 10,700,000 | 0.98 | 2.25 | 0.20 | 6.84 |
| 2.00 | 5,100,000 | 1.12 | 3.24 | 0.21 | 7.81 |
Inferred
| Cut-off Zn % Grade > Cut-off | Tonnes > Cut-off | Cu (%) | Zn(%) | Au (g/t) | Ag (g/t) |
| 0.75 | 17,000,000 | 0.85 | 1.74 | 0.19 | 5.89 |
| 2.00 | 5,100,000 | 0.96 | 2.81 | 0.19 | 6.20 |
1. The historic mineral resources estimate set out in the table above have been extracted from NI 43-101 technical report dated January 23, 2009, by Messrs. G. H. Giroux, P Eng. and C. Tucker Barrie, P.Geo., who are qualified persons under NI 43-101. Assumptions in the NI 43-101 report included: (i) metals prices – Cu at $1.30/lb; Zn at $0.79/lb; Au at $675/oz; Ag at $10/oz; (ii) recoveries – Cu at 85%; Zn at 84%; Au at 36%; Ag at 29%, however no metallurgical test work had been performed.
NGEx Resources says Hambok sale has been Finalized
By NGEx Resources Inc.,
NGEx Resources Inc. (TSX:NGQ) (“NGEx” or the “Company”) is pleased to announce that its previously announced agreement (the “Agreement”), to sell the Company’s Hambok copper-zinc deposit to Bisha Mining Share Company (“Bisha”) has closed and the initial cash payment of US$5,000,0000 has been received.
Pursuant to the Agreement, additional cash consideration of US$7,500,000 will be payable contingent upon the commencement of commercial production from the Mogoraib Exploration License.
Bisha Mining Share Company is 60% owned by Nevsun Resources Ltd. (TSX:NSU)(NYSE:NSU) and 40% owned by Enamco (Eritrean National Mining Company) and operates the Bisha gold-copper mine located approximately 16 kilometres from the Hambok deposit.
Including the payment from Bisha, the Company has current working capital of approximately $15 million which will be used to continue exploration on its South American copper-gold projects including its flagship Los Helados Project. Exploration drilling on the Los Helados project is expected to resume later this month.
