VANCOUVER, July 26, 2016 /CNW/ - Nevsun Resources Ltd.
(TSX:NSU) (NYSE MKT:NSU) (the "Company" or "Nevsun") announces that
its 60%-owned subsidiary Bisha Mining Share Company ("BMSC") will
be increasing its total land package of exploration licenses to 814
square kilometers, up 1,891% from 41 square kilometers in
Eritrea's Bisha Volcanogenic
Massive Sulfide (VMS) District.
The increased exploration license area consists of two highly
prospective land packages (see map attached):
- 184 square kilometers surrounding the existing BMSC mining
licenses ("Tabakin Exploration License"), providing continuous
coverage for 15 kilometers over the Bisha mine favourable
stratigraphy; and
- 630 square kilometers in the vicinity of the Bisha mine over
highly prospective geology, combining new and previously
relinquished property and the current Mogoraib River
exploration license that hosts the Hambok, Asheli and Aderat
deposits ("New Mogoraib Exploration License").
"The Bisha VMS District remains vastly under-explored. Expanding
our exploration land package has been a high priority that required
a negotiation with the Ministry of Energy and Mines for extended
and improved license terms. BMSC now has ownership of all of
the exploration land in the Bisha district", stated Cliff Davis, President and CEO of Nevsun.
"With greater access to additional high-priority targets and
increased time to evaluate results, we have added another key
element to our strategy to deliver shareholder value through
exploration in this prolific mining district. We are proud
leaders in the Eritrean mining industry and believe BMSC's
exploration efforts will deliver mining for decades to come in the
Bisha District."
The Tabakin Exploration License includes the highly prospective
area between the Bisha and Harena mining licenses. Given the
prospectivity and proximity to the existing process plant and the
Bisha Mine, BMSC will be permitted to hold the land for ten years
before any partial relinquishments. A number of
untested geophysical and geochemical anomalies are present on this
property and evaluation will begin immediately.
The New Mogoraib Exploration License provides a fresh start on
the relinquishment terms for the entire 630 square kilometer land
package and will be subject to the existing relinquishment regime
for exploration licenses (three years of no relinquishment followed
by two one-year renewals with a 25% annual area reduction beginning
after year three). This additional land package will
ensure BMSC has sufficient time to fully test the exploration
potential using the successful exploration techniques of airborne
geophysical surveys followed by systematic ground and borehole
geophysics which have led to the exploration success at Harena and
Asheli. BMSC management have already identified one specific
high-priority target where drilling will begin in H2 2016.
Nevsun has funded its share of these newly acquired exploration
licenses via a reduction in the amount receivable from the Eritrean
National Mining Corporation (ENAMCO). This transaction, in
addition to $12.5 million collected
during Q2 2016, has reduced the amount receivable from ENAMCO to
$10 million at June 30, 2016. ENAMCO has agreed to
pay the remaining amount in two installments of $5 million, in each of October 2016 and March 2017. In exchange
for this commitment, Nevsun will no longer be charging interest on
the receivable. As a reminder, the receivable from ENAMCO arose in
2011 when ENAMCO agreed to a $254
million price for the acquisition of a 30% interest in
BMSC. The Company has collected the principal and
interest (total interest since 2011 is $15
million) from ENAMCO over the past five years. The
collection of this receivable is a good example of the State of Eritrea demonstrating that it is a
reliable jurisdiction for foreign direct investment. The
additional investment by Nevsun in this exploration land package
demonstrates our belief in the Bisha district, our confidence in
operating in Eritrea and our
strong relationship with the State of
Eritrea.
Quality
Assurance
Mr. Peter Manojlovic P.Geo.,
Nevsun's Vice President of Exploration, a Qualified Person as
defined by NI 43-101, has reviewed the technical content of this
press release and approved its dissemination.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is the 60% owner of the high grade Bisha
Mine in Eritrea. Bisha has nine years of reserve life,
generating revenue from both copper and zinc concentrates
containing gold and silver by-products. Nevsun has a strong
balance sheet with over US$200
million cash, no debt and pays a peer leading quarterly
dividend. Nevsun is well positioned to grow shareholder value
through exploration at Bisha and the newly acquired Serbian assets
that include the high-grade copper-gold Timok Project.
Forward Looking Statements
The above contains forward-looking statements or
forward-looking information within the meaning of the United States
Private Securities Litigation Reform Act of 1995, and applicable
Canadian securities laws. 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
concerning the Company's current beliefs, plans and expectations
about the future including but not limited to statements relating
to the business, prospects and future activities of, and
developments related to the Company, anticipated developments in
operations, commercial production, estimated future production,
future costs of production and capital expenditures, mine life of
mineral projects, the timing and amount of estimated capital
expenditures, costs and timing of exploration and development and
capital expenditures related thereto, operating expenditures, and
related cash flows, success of exploration activities, estimated
exploration budgets, currency fluctuations, requirements for
additional capital, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, title
disputes or claims, limitations on insurance coverage, the timing
and possible outcome of pending litigation, the timing and possible
outcome of regulatory and permitting matters, goals, strategies,
future growth, planned future acquisitions and explorations
activities, the adequacy of financial resources and other events or
conditions that may occur in the future, and are inherently
uncertain. The 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) exploration activities or the mine operations are disrupted
or suspended due to acts of god, internal conflicts in the country
of Eritrea or Serbia, unforeseen
government actions or other events; (iv) the Company experiences
the loss of key personnel; (v) the Company's operations or
exploration activities 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, 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; (ix) Reservoir's PEA is preliminary in nature and it
includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves; and other risks are more fully described in the Company's
Annual Information Form for the fiscal year ended December 31, 2015, which are 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 the Company's
forward-looking statements.
Further information concerning risks and uncertainties
associated with these forward-looking statements and our business
can be found in our Annual Information Form for the year ended
December 31, 2015, which is available
on the Company's website (www.nevsun.com), filed
under our profile on SEDAR (www.sedar.com) and on
EDGAR (www.sec.gov) under cover of Form 40-F.
NEVSUN RESOURCES LTD.
"Cliff T. Davis"
Cliff T. Davis
President & Chief Executive Officer
Revised Exploration Licenses held by Bisha Mining Share
Company
SOURCE Nevsun Resources Ltd.