Tag Archives: Asheli Deposit

Nevsun Delivers Substantial Resource Growth at Bisha from 2016 Drilling

Nevsun updated its mineral resource estimates for Bisha, Harena and Asheli deposits in Eritrea. Harena Inferred resources now increased by nearly 130%. Bisha district Inferred resources also increased by over 100%. Asheli’s maiden inferred resources outlines modest increase.

BY NEVSUN RESOURCES

Nevsun Resources Ltd. (TSX: NSU) (NYSE MKT: NSU) is pleased to announce the updated mineral resource estimates effective December 31, 2016, for the Bisha, Harena and Asheli deposits in Eritrea. These updated resources form the first part of the annual year end mineral resource and mineral reserve statement for 2016. The updated mineral reserve estimate, currently in-progress, should be released in late May or early June 2017. Continue reading Nevsun Delivers Substantial Resource Growth at Bisha from 2016 Drilling

Nevsun Shares Jump on Additional High Grade Mineralization at Asheli

Nevsun Shares Jumps by 4% following Asheli new drilling results, 21 km from Bisha

By Frik Els | for Mining.com,

Amid a down day on metals markets Nevsun Resources (TSE:NSU NYSEMKT:NSU) stock jumped 4% on Thursday after releasing new assay results from further drilling at Asheli, part of its $11 million ongoing regional exploration program at its Bisha mine in Eritrea.

By the close in New York the Nevsun shares changed hands at $3.34 affording the counter a market capitalization of $658 million. Nevsun is up 24% in value this year.

The Vancouver-based firm announced new massive and stringer sulphide intersections at Asheli which is located 21km from Bisha where the company has been mining copper and zinc containing gold and silver as by-products:

New intersections at Asheli include:

  • MX-071: 13.3m @ 1.82% Cu, 9.87% Zn, 0.51g/t Au, 30g/t Ag
  • MX-075: 31.3m @ 1.30% Cu, 13.98% Zn, 0.70g/t Au, 41g/t Ag, including 13.7m @ 0.91% Cu, 28.01% Zn, 0.24g/t Au, 16g/t Ag
  • MX-076: 11.00m @ 1.91% Cu, 9.99% Zn, 0.36g/t Au, 33g/t Ag
  • MX-082: 14.3m @ 1.43% Cu, 5.93% Zn, 0.37 g/t Au, 23 g/t Ag
  • True widths are estimated to be approximately 70% of the drill intercept length
  • Drilling extends Asheli down dip with increasing zinc grades
  • Further expansion potential possible to the northeast
  • Drill testing has begun on the numerous untested targets along the 4 kilometers of similar stratigraphy

Nevsun CEO Cliff Davis said

“the deposit is fairly compact and relatively shallow which should be advantageous for mining. There is room for growth to the northeast and strong footwall alteration is present in this area. VMS deposits rarely occur in isolation and we have now started testing other targets along the four kilometers of similar geology to the east and northeast.”

Following the results the announcement Haywood Securities commented that the Asheli trend, which is part of Nevsun’s Mogoraib River Exploration Licence, includes over 4 kilometres of untested strike length, “which stand to further define the Bisha district as a multi-deposit volcanogenic massive sulphide (VMS) camp comparable to other world-class VMS camps around the globe.”

Nevsun currently owns 60% (the Eritrean government owns the rest) of the $250 million east African mine which started operations as a gold-silver producer in 2010. Three years later Bisha underwent a $110 million expansion to switch to copper concentrate production from supergene ore.

This year the company will pivot again to expand flotation capacity to produce zinc concentrate. Zinc is the best-performing metal in 2016 rising more than 18% in price since the start of the year. Life of mine payable metals at Bisha is put at 470m pounds of copper, 1.7 billion pounds of zinc, 240,000 ounces of gold and 8.2 million ounces of silver.

Nevsun acquired Reservoir Minerals Inc. in a deal worth $365 million in April. The deal, which still has to be finalized, provides the companies 100% ownership in the upper zone of the Timok Copper Project in Serbia, which had previously been owned by Reservoir and Freeport McMoRan. Nevsun shareholders will own two-thirds of the combined company.



EDITOR’S NOTE


The Asheli deposit was discovered by Bisha Mining Share Company (BMSC) in April 2015. The initial focus of exploration was a 700 meter long section of highly sericite and chlorite altered felsic volcanics with associated small, pod-shaped surface gossans. The geology continues on-strike for five kilometers of similar geology. Limited historical drilling had intersected only narrow stringer style mineralization with minor chalcopyrite and sphalerite but no massive sulphides.

BMSC’s 2015 discovery hole MX-044 returned 8.30 meters of massive sulphide grading 1.44% Cu and 4.00% Zn. Follow-up drilling in hole MX-052 confirmed the new discovery with 22.90 meters of massive sulphide grading 2.29% Cu and 4.50% Zn and additional massive sulphide mineralization was intersected in hole MX-056 (20.90 meters grading 1.26% Cu, 6.08% Zn). Drilling was suspended in July for the rainy season in this part of Eritrea and to focus on other high priority targets elsewhere.

In April 2016, drilling resumed at Asheli with a goal of better defining the geometry of the massive sulphide deposit. Early results from the campaign included hole MX-068 which targeted the projected down plunge extension of the mineralization approximately 100 meters below the known deposit. This hole successfully intersected 44.0 meters of massive sulphide grading 1.97% Cu and 9.13% Zn.

Four additional holes have now intersected massive sulphides at the Asheli deposit. Hole MX-075 drilled 60 meters down dip of hole MX-068 intersected 31.3 meters of massive and stringer sulphides grading 1.30% Cu and 13.98% Zn. A particularly zinc rich section graded 0.91% Cu and 28.01% Zn over 13.7 meters. The deposit remains open to the northeast where it has potentially been off-set. Future drilling will target this area. A maiden resource for Asheli will be included in the annual resource update scheduled to be released in early 2017.

Drilling is now in progress targeting the 4 kilometers of similar stratigraphy to the northeast.

(Source: Nevsun.com)

Nevsun Q1 2016 Results Earnings Call Transcript

Nevsun is on top of the leading, highly profitable copper miner in Africa

By Seeking Alpha Transcripts,

The Vancouver-based mining company Nevsun Resources held a conference call on Friday, April 22, 2016 to discuss Q1 (01 January – 31 March) 2016 earnings results from its 60% owned Bisha mine in Eritrea that is regarded as one of the highest grade open pit copper mines in the world.

Present at the conference call, Nevsun Executives including Cliff Davis – President and CEO; Frazer Bourchier – COO, Tom Whelan – CFO; and Scott Trebilcock – Chief Development Officer.

Analysts present at the conference call includes Stefan Ioannou – Haywood Securities; Albert Sebastian – Prospect Advisors; Craig Hutchison – TD Securities; and Joseph Gallucci – Dundee Capital Markets. Continue reading Nevsun Q1 2016 Results Earnings Call Transcript

Nevsun Outlook Provides 2016 Production and Cost Guidance

Nevsun Resources Ltd. provides its 2016 Bisha Mine production and cost guidance and overall outlook for the year.

By Nevsun Resources,

Nevsun Resources Ltd. (TSX:NSU / NYSE MKT:NSU) today announces its 2016 outlook guidance which includes revenues from copper, zinc and monetization of precious metal stockpiles from the Bisha Mine in Eritrea.

The Bisha Mine, operated by Nevsun’s 60 percent owned subsidiary Bisha Mining Share Company (BMSC or Bisha), remains an exceptional base metal mine with a track record of resource growth. 2016 is a transitional year as the operation moves into the primary ore body at Bisha, adding zinc concentrate production to revenues. All financial figures are in US dollars. Continue reading Nevsun Outlook Provides 2016 Production and Cost Guidance

Can Uncertainty Over Sovereign Risk Create a Buying Opportunity for Nevsun Resources?

“Eritrea is a mysterious economic zone but companies operating in the country are simply overlooked by the market. Almost all reports on sovereign risk label it a “no go.” But what we found out is that idea is a bit exaggerated. That is why frontier markets like Nevsun are there to take full advantage of the growth” – Nicholas Bhandari, Head of Quantitative Research at Equities.com

By Joel Anderson | Equities.com,

The Equities.com research team looked into Nevsun Resources (NSU) with its most recent research report. The Canadian resource company, which is active in Eritrea, presented an intriguing challenge in terms of valuation, so we talked with Nicholas Bhandari, Head of Quantitative Research at Equities.com, about the approach they took in digging into this mining company.

You can download the entire research report in the research section at Equities.com.

EQ: So with Nevsun Resources, you’ve delved into new territory a bit in trying to assess the risk associated with operating a mine in a country with uncertain political and economic futures. How did you approach this challenge, as your other reports to this point haven’t included this sort of risk?  Continue reading Can Uncertainty Over Sovereign Risk Create a Buying Opportunity for Nevsun Resources?

Nevsun and its Zinc Processing Plant in Eritrea (Update-III)

By TesfaNews,

NEVSUN Resources recently announced a new Volcanogenic Massive Sulphide (VMS) discovery 20 kilometres to the southwest of its operating Bisha Mine in Eritrea.

We already knew the Bisha project was a VMS project and all VMS-projects occur in one large deposit (in this case the Bisha mine) but also contain several smaller satellite deposits as a cluster around the main deposit. Since 2012, Nevsun Resources has been focusing on effectively finding those satellite deposits.  Continue reading Nevsun and its Zinc Processing Plant in Eritrea (Update-III)