SUNRIDGE Gold Corp. (the “Company” or “Sunridge”) (SGC: TSX.V/SGCNF: OTCQX) is pleased to announce that the Asmara Mining Share Company (“AMSC”) has recently been formed in Eritrea. AMSC is the operating entity which will own and operate the Asmara copper-zinc-gold mine in Eritrea.
CHINESE investment group SFECO this week announced that mine construction work at the Zara gold project in Eritrea entered a smooth 200 days.
In comparison to the Bisha mine, the Zara Gold project is found in a mountainous terrain with some unfavorable natural factors. However, the company said it achieved to complete the fundamental structures needed for the main plant.
“Q2 cash costs were managed to expectations helping Nevsun maintain a strong balance sheet despite the drop in metals prices and delivery of a significant capital expansion project,”said president and CEO Cliff Davis.
Nevsun Resources(TSE:NSU)(NYSE MKT:NSU) reported Wednesday that its second quarter profit and revenues declined sharply on lower gold volumes and prices, as the company transitions to a majority copper producer, managing to keep costs in line with expectations despite the weaker metals environment and the capital-intensive project underway.
Nevsun Resources (NSU) has had a fascinating history, and for investors getting in the latter part of 2008 and early part of 2009 (when it was trading under $1.00), they enjoyed some huge gains, as the share price soared to as high as $7.53 per share in the latter part of 2010.
Alas it wasn’t the fate of the stock to continue on with that performance, as it has steadily fallen from those highs to trade at just over $3.00 per share as I write.
The challenge at this time for Nevsun, now that its best gold years are now behind it, is in transitioning from gold production to a low cost copper concentrate producer, with gold becoming a byproduct of copper production. Depending on the price movement of gold, this could be considered a huge positive or a significant negative for the company. Continue reading Nevsun Transitioning From Gold To Copper Producer→