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Nevsun Resources Ltd.
Nevsun Resources Ltd.
10/09/2012 | Press release
Nevsun Announces Q3 Gold Production of 98,000 Ounces
distributed by noodls on 10/09/2012 08:15
October 09, 2012
Nevsun Announces Q3 Gold Production of 98,000 Ounces
- Produced 98,000 ounces of gold in Q3 2012 (267,000 ounces year-to-date)
- Mined 316,000 tonnes at 5.21 g/t gold
- Harena pre-stripping complete; ore production to start in October 2012
- Copper plant expansion remains on plan for mid-2013 commissioning
- Nevsun continues to review acquisition opportunities
Nevsun Resources Ltd. (TSX:NSU / NYSE MKT:NSU) is pleased to announce strong production results of 98,000 ounces of gold for the quarter ended September 30, 2012. Gold production in the quarter was again above expectations due to higher than anticipated grades in the transitional oxide zone. However, Nevsun does not expect this level of production to continue as the transitional oxide zone is nearly exhausted and the mill will start processing lower grade Harena ore in Q4. Bisha is expected to meet or exceed the top end of full year 2012 production guidance of 280,000 to 300,000 ounces of gold.
A summary of the Company's third quarter operating results are as follows:
| Q3 2012 3 months ending September 30 | Q2 2012 3 months ending June 30 | Q1 2012 3 months ending March 31 | Year-to-Date 2012 Nine months ending September 30 | |
| Mining | ||||
| Ore mined, tonnes | 316,000 | 500,000 | 349,000 | 1,165,000 |
| Mined grade, g/t | 5.21 | 6.04 | 4.71 | 5.42 |
| Waste mined, tonnes | 2,590,000 | 1,659,000 | 1,826,000 | 6,075,000 |
| Strip ratio, (calc in BCM's) | 10.3 | 4.0 | 6.2 | 6.3 |
| Copper phase prestrip, tonnes | - | 481,000 | 739,000 | 1,220,000 |
| Milling | ||||
| Ore milled, tonnes | 465,000 | 465,000 | 430,000 | 1,360,000 |
| Feed grade, g/t | 7.40 | 6.93 | 6.58 | 6.98 |
| Processing | ||||
| Recovery % of gold | 87% | 85% | 86% | 86% |
| Gold in doré, ounces poured | 98,000 | 87,000 | 82,000 | 267,000 |
The mine performed well in the quarter, with above plan milled grade and recovery. Waste mining to pre-strip Harena ore and copper supergene progressed to plan. Ore mining decreased relative to the previous quarter during the June to September rainy season.
Nevsun expects to announce its full Q3 financial results on November 8, 2012, with a conference call the same day.
Harena
Pre-stripping of Harena was completed in Q3 and Harena ore
mining and processing will soon commence.
Other Updates
The copper plant expansion continues to progress on
schedule with concentrate production expected in mid-2013.
In addition to the ongoing Bisha operations and capital expansion, Nevsun continues its due diligence of expansion opportunities of both gold and copper projects in Africa, the Americas and Europe
Forward Looking Statements
The above contains forward-looking statements regarding
future gold production, future mine operations, future
copper phase expansion, timing of copper production and
possible acquisition activity. Forward-looking statements
are frequently, but not always, identified by words such as
"expects," "anticipates,"
"believes," "intends,"
"estimated," "potential,"
"possible" and similar expressions, or statements
that events, conditions or results "will,"
"may," "could" or "should"
occur or be achieved. Forward-looking statements are
statements about the future and are inherently uncertain,
and actual achievements of the Company or other future
events or conditions may differ materially from those
reflected in the forward-looking statements due to a
variety of risks, uncertainties and other factors,
including, without limitation, the risks that (i) any of
the assumptions in the historical resource estimates turn
out to be incorrect, incomplete, or flawed in any respect;
(ii) the methodologies and models used to prepare the
resource and reserve estimates either underestimate or
overestimate the resources or reserves due to hidden or
unknown conditions, (iii) the mine operations are disrupted
or suspended due to acts of god, internal conflicts in the
country of Eritrea, or unforeseen government actions; (iv)
the Company experiences the loss of key personnel; (v) the
mine operations are adversely affected by other political
or military, or terrorist activities; (vi) the Company
becomes involved in any material disputes with any of its
key business partners, lenders, suppliers or customers;
(vii) the Company is subjected to any hostile takeover or
other unsolicited attempts to acquire control of the
Company; (viii) the Company is subject to any adverse
ruling in any of the pending litigation to which it is a
party; or (ix) the Company incurs unanticipated costs as a
result of the transition from the oxide phase of the Bisha
mining operations to the copper phase in 2013. Other risks
are more fully described in the Company's most recent
Management Discussion and Analysis, which is incorporated
herein by reference. The Company's forward-looking
statements are based on the beliefs, expectations and
opinions of management on the date the statements are made
and the Company assumes no obligation to update such
forward-looking statements in the future, except as
required by law. For the reasons set forth above, investors
should not place undue reliance on forward-looking
statements.
Please see the Company's Annual Information Form for the fiscal year ended December 31, 2011 and the Company's Management Discussion and Analysis for the quarter ended June 30, 2012 for a more complete discussion of the risk factors associated with our business.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is a Vancouver-based mining company
with an operating mine in Eritrea. Nevsun's 60%-owned
Bisha Mine commenced gold production in February 2011 and
is scheduled to transition to copper/gold production in
2013. Management expects the Bisha Mine will rank as one of
the highest grade open pit base metal deposits in the
world.
Cliff T. Davis
President & Chief Executive Officer
