VANCOUVER, March 23, 2017 /CNW/ - Nevsun Resources Ltd.
(TSX: NSU) (NYSE MKT: NSU) ("Nevsun" or the "Company") 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.
Highlights
- Increased Harena Inferred resources by nearly 130% to 25
million tonnes grading 0.93% copper, 4.76% zinc, 0.8 g/t gold and
31 g/t silver
- Harena remains open with further drilling ongoing in
2017
- Maiden Inferred resource for Asheli totalling 2.4 million
tonnes grading 1.86% copper, 8.59% zinc, 0.4 g/t gold, and 30 g/t
silver
- Additional targets immediately along strike of Asheli
presently being evaluated
- Increased Bisha district Inferred resources by over 100% to
31 million tonnes containing 667 million pounds copper, 3.3 billion
pounds zinc, 780 thousand ounces gold, and 30 million ounces
silver
- Measured and Indicated resources of 38 million tonnes
containing 869 million pounds copper, 3.5 billion pounds zinc, 710
thousand ounces gold and 41 million ounces silver
Cliff Davis, Nevsun CEO,
commented, "Our 2016 regional exploration program built on 2015
successes adding over 1.1 billion copper equivalent pounds of
inferred resources. Harena, in particular, continues to increase in
size and has growing underground mining potential to extend the
mine life at Bisha. Our exploration drilling was also
successful in defining a new massive sulphide resource at Asheli,
further highlighting the prospectivity of the Bisha District to
host additional resources."
Mr. Davis went on to say, "Nevsun, alongside our Eritrean
partner, ENAMCO, continues to invest in regional exploration at
Bisha with the ongoing objective to significantly increase the mine
life of our operation."
Tables 1.1 to 1.7 containing the complete mineral resource
estimates for each deposit are appended at the end of this
release. Copper equivalent is calculated by dividing
contained zinc by 2.5 and adding to contained copper.
For the Timok project in Serbia, resources are the same as
previously disclosed in the 2016 Preliminary Economic Assessment
and will be updated when the Upper Zone project pre-feasibility
study is published in September
2017.
Harena
In 2016, 6,080 metres of new drilling was completed at Harena
continuing to extend the deposit to depth where it remains open.
The inferred resource at Harena grew to over 25 million tonnes from
11 million tonnes the year earlier, for an additional 162 million
pounds of copper, 1,668 million pounds of zinc, 280 thousand ounces
of gold and 10.2 million ounces of silver. New metallurgical
testing found the expected recovery for zinc to be 85%, an
improvement on the previous recoveries of 72% after testing with a
more representative set of material. Drilling continues at
Harena in an effort to expand the deposit to depth.
Asheli
Asheli was discovered in June 2015
by Bisha as part of the Regional Exploration Program. In
2016, 12,918 metres of drilling was completed in 28 holes resulting
in the definition of a new inferred resource of 2.4 million tonnes
containing 98 million pounds of copper and 455 million pounds of
zinc. Importantly, Asheli's average grade of 1.9% copper and
8.6% zinc is higher than either Harena or Bisha's primary sulphide
grade. Drilling continues in the Asheli area following up on
encouraging mineralization recently discovered 200 metres north of
the main deposit.
Bisha
At Bisha, 11,770 metres of drilling in 21 holes was completed in
2016 testing the deposit below the proposed ultimate pit. This work
has determined the down dip extent of the deposit.
Considerable additional diamond drill core and reverse circulation
drilling for production and metallurgical test work was also
completed which has improved our understanding of the zonation,
composition and recovery of the various ore types. Measured
and Indicated resources including stockpiles at Bisha now stand at
23.4 million tonnes containing 529 million pounds of copper, 2,836
million pounds of zinc, 560 thousand ounces of gold and 34 million
ounces of silver, a small decrease mostly due to mining
depletion.
Qualified Persons Statement
All mineral resource estimates in this report have been prepared
by the Qualified Persons described below in accordance with
Canadian National Instrument 43-101 - Standards of Disclosure for
Mineral Projects ("NI 43-101") and the Canadian Institute of
Mining, Metallurgy and Petroleum's Classification System (CIM
Definition Standards for Mineral Resources and Mineral Reserves
2010).
The information in this press release that relates to mineral
resources was prepared by Phil
Jankowski, a Qualified Person as defined by NI 43-101.
Mr. Jankowski has reviewed and approved the technical contents of
this press release for his relevant sections.
Peter Manojlovic, P.Geo., and
Frazer Bourchier, P.Eng., are Nevsun's designated Qualified Persons
and have reviewed and approved the contents of this press
release.
A Quality Assurance/Quality Control program was part of the
sampling program for the Bisha work. Certified reference material
(standards), duplicates and blank samples are systematically
inserted into the flow of drill samples and results analyzed on a
batch by batch basis. This program includes a chain of custody
whereby diamond drill core samples are initially crushed and
sub-sampled at the Bisha Mine sample preparation facility and
pulverized and analyzed by Genalysis in Perth, Australia. Multi-element analysis is
completed using ICP-AES methods; gold is analyzed by fire assay
with AAS finish. Reverse circulation drill samples are processed at
the Bisha Mine on-site laboratory, which is a member of the SGS
group. Multi-element analysis is completed using ICP-OES methods
with gold also analyzed by fire assay.
Cautionary Notes to Investors - Resource Estimates
In accordance with applicable Canadian securities regulatory
requirements, all mineral resource estimates of the Company
disclosed or incorporated by reference in this news release have
been prepared in accordance with Canadian National Instrument
43-101 - Standards of Disclosure for Mineral Projects, classified
in accordance with Canadian Institute of Mining Metallurgy and
Petroleum's "CIM Standards on Mineral Resources and Reserves
Definitions and Guidelines" (the "CIM Guidelines"). The definitions
of mineral reserves and mineral resources are set out in our
disclosure of our mineral reserve and mineral resource estimates in
our Annual Information Form.
The Company uses the terms "mineral resources", "measured
mineral resources", "indicated mineral resources" and "inferred
mineral resources". While those terms are recognized by Canadian
securities regulatory authorities, they are not recognized by the
United States Securities and Exchange Commission (the "SEC") and
the SEC does not permit U.S. companies to disclose resources in
their filings with the SEC.
Pursuant to the CIM Guidelines, mineral resources have a higher
degree of uncertainty than mineral reserves as to their existence
as well as their economic and legal feasibility. Inferred mineral
resources, when compared with measured or indicated mineral
resources, have the least certainty as to their existence, and it
cannot be assumed that all or any part of an inferred mineral
resource will be upgraded to an indicated or measured mineral
resource as a result of continued exploration. Pursuant to NI
43-101, inferred mineral resources may not form the basis of any
economic analysis, including any feasibility study. Accordingly,
readers are cautioned not to assume that all or any part of a
mineral resource exists, will ever be converted into a mineral
reserve, or is or will ever be economically or legally mineable or
recovered.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is the 100% owner of the high-grade
copper-gold Timok Upper Zone in Serbia and 60% owner of the
high-grade copper-zinc Bisha Mine in Eritrea. Nevsun is well positioned with a
strong debt-free balance sheet to grow shareholder value through
advancing the Timok project to production.
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", "hopes", "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 and information made concerning: statements relating to
the business, prospects and future activities of, and developments
related to the Company, anticipated dividends, 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) the timing and success of improving the quality of the
copper circuit product by resolving the metallurgical challenges
from the variable ore materials being processed to produce
concentrate from the copper circuit; * the effect on resource or
reserve estimates due to the possible inability to resolve the
metallurgical challenges on the variable ore materials being
processed on a timely basis or at all; and other risks are more
fully described in the Company's Annual Information Form for the
fiscal year ended December 31, 2016,
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, 2016, 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
NSU 17-06.doc
Mineral Resources
The below reported Mineral Resources for Bisha and Harena are
inclusive of Mineral Reserves which will be reported later.
Table 1.1: Consolidated Bisha, Harena, Northwest, Hambok and
Asheli Mineral Resource as at 31 December
2016.
(Phil Jankowski, MAusIMM
(CP), (BMSC))
Measured
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
|
Oxide
|
10
|
|
|
40
|
8.4
|
|
|
10
|
1
|
Supergene
|
30
|
2.97
|
|
30
|
0.6
|
2,000
|
|
30
|
1
|
Boundary
|
10
|
5.57
|
1.24
|
54
|
0.6
|
1,000
|
<1000
|
20
|
<1
|
Primary
|
1,250
|
1.02
|
6.62
|
42
|
0.8
|
28,000
|
183,000
|
1,690
|
31
|
Total
Measured
|
1,300
|
|
31,000
|
183,000
|
1,740
|
33
|
|
Indicated
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Supergene
|
1,130
|
1.45
|
|
10
|
0.3
|
36,000
|
|
360
|
11
|
Boundary
|
60
|
1.34
|
1.85
|
24
|
0.5
|
2,000
|
2,000
|
40
|
1
|
Primary
|
32,480
|
1.00
|
4.24
|
33
|
0.5
|
715,000
|
3,038,000
|
34,240
|
547
|
Total
Indicated
|
33,660
|
|
753,000
|
3,040,000
|
34,650
|
559
|
|
|
|
|
|
|
|
Total
Measured and
Indicated
(including
stockpiles)
|
37,800
|
|
869,000
|
3,451,000
|
41,250
|
710
|
|
Inferred
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Oxide
|
650
|
|
|
19
|
2.9
|
|
|
390
|
59
|
Supergene
|
880
|
1.19
|
|
4
|
0.4
|
23,000
|
|
100
|
12
|
Primary
|
28,900
|
0.99
|
5.21
|
31
|
0.8
|
634,000
|
3,318,000
|
28,870
|
700
|
Total
Inferred
|
30,430
|
|
657,000
|
3,318,000
|
29,370
|
770
|
|
Total
Inferred
(including
stockpiles)
|
30,940
|
|
667,000
|
3,318,000
|
29,900
|
780
|
|
Notes to be read in
conjunction with the Resource table above:
|
(1)
|
Tonnage is rounded to
the nearest 10,000 tonnes and grades are rounded to two decimal
places for copper and zinc, one decimal place for gold, and zero
decimal places for silver. Contained metal for copper and zinc are
rounded to the nearest million pounds. Contained metal for silver
is rounded to the nearest 10,000 ounces and gold is rounded to the
nearest 1,000 ounces.
|
(2)
|
Rounding as required
by reporting guidelines may result in apparent summation
differences between tonnes, grade and contained metal
content.
|
(3)
|
Consolidated Resource
Table includes all surface stockpiles
|
(4)
|
Tonnage and grade
measurements are in metrics units. Contained gold and silver ounces
are reported as troy ounces, contained copper and zinc as
avoirdupois pounds.
|
(5)
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
|
Table 1.2: Stockpile Mineral Resource as at 31 December 2016
(Phil Jankowski, MAusIMM (CP),
(BMSC))
Measured
(Stockpiles)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
|
Oxide
|
320
|
|
|
172
|
5.1
|
|
|
1,750
|
51
|
Supergene
|
40
|
2.33
|
|
38
|
0.7
|
2,000
|
|
40
|
1
|
Boundary
|
2,290
|
1.56
|
4.13
|
39
|
0.8
|
79,000
|
208,000
|
2,830
|
61
|
Primary
|
200
|
0.74
|
4.5
|
36
|
0.7
|
3,000
|
20,000
|
230
|
5
|
Total
Measured
|
2,840
|
|
84,000
|
228,000
|
4,850
|
118
|
|
Inferred
(Stockpiles)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Oxide-Au
|
210
|
|
|
70
|
1.2
|
|
|
480
|
8
|
Oxide-Cu
|
300
|
1.45
|
|
6
|
0.2
|
10,000
|
|
60
|
2
|
Total
Inferred
|
510
|
|
|
|
|
10,000
|
|
540
|
10
|
|
Notes to be read in
conjunction with the Resource table above:
|
(1)
|
Measured Oxide
comprises Bisha LTS (Long Term Stockpile) and Harena MOP
stockpiles.
|
(2)
|
Measured Supergene
comprises Bisha LTS stockpiles.
|
(3)
|
Measured Boundary
comprises Bisha ROM, River Bed and LTS Boundary Ore that has been
stockpiled during the mining of the Primary ore; processing of
Boundary to date has produced a Bulk Cu-Zn Concentrate using a 10%
blend of Boundary Ore with primary ore from the Bisha mine to the
process plant.
|
(4)
|
Measured Primary
comprises Bisha ROM and Crushed Ore stockpiles.
|
(5)
|
Inferred Oxide
comprises River Bed Pyrite Sand, North Dump and Bisha LTS
Hangingwall Copper Ore; further metallurgical studies are required
to finalize a metallurgical treatment flowsheet for this
material.
|
(6)
|
Stockpiles are
estimated by multiplying their surveyed volumes with a loose
density derived by factoring their measured insitu density by an
appropriate swell factor. Grades are taken from their insitu grade
as estimated by close spaced grade control drilling. Tonnage is
rounded to the nearest 10,000 tonnes and grades are rounded to two
decimal places for copper and zinc, one decimal place for gold, and
zero decimal places for silver. Contained metal for copper and zinc
are rounded to the nearest million pounds. Contained metal for
silver is rounded to the nearest 10,000 ounces and gold is rounded
to the nearest 1,000 ounces.
|
(7)
|
Rounding may result
in apparent summation differences between tonnes, grade and
contained metal content.
|
(8)
|
Tonnage and grade
measurements are in metrics units. Contained gold and silver ounces
are reported as troy ounces, contained copper and zinc pounds as
imperial pounds.
|
Table 1.3: Bisha Mineral Resource as at 31 December 2016.
(Phil Jankowski, MAusIMM (CP),
(BMSC))
Measured (Open
Pit)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
|
Oxide
|
10
|
|
|
40
|
8.4
|
|
|
10
|
1
|
Supergene
|
30
|
2.97
|
|
30
|
0.6
|
2,000
|
|
30
|
1
|
Boundary
|
10
|
5.57
|
1.24
|
54
|
0.6
|
1,000
|
<1000
|
20
|
<1
|
Primary
|
1,250
|
1.02
|
6.62
|
42
|
0.8
|
28,000
|
183,000
|
1,690
|
31
|
Total OP
Measured
|
1,300
|
|
31,000
|
183,000
|
1,740
|
33
|
|
Indicated (Open
Pit)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Supergene
|
110
|
1.33
|
|
10
|
0.4
|
3,000
|
|
40
|
1
|
Boundary
|
60
|
1.34
|
1.85
|
24
|
0.5
|
2,000
|
2,000
|
40
|
1
|
Primary
|
19,140
|
0.97
|
5.74
|
45
|
0.7
|
409,000
|
2,422,000
|
27,410
|
412
|
Total OP
Indicated
|
19,310
|
|
414,000
|
2,424,000
|
27,490
|
414
|
|
|
|
|
|
|
|
Total OP
Measured and
Indicated
|
20,600
|
|
446,000
|
2,608,000
|
29,230
|
448
|
|
Inferred (Open
Pit)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Oxide
|
10
|
|
|
25
|
1.6
|
|
|
10
|
<1
|
Supergene
|
780
|
1.23
|
|
1
|
0.1
|
21,000
|
|
30
|
2
|
Total OP
Inferred
|
790
|
|
21,000
|
<1000
|
40
|
2
|
|
Inferred
(Underground)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Primary
|
1,460
|
0.73
|
7.44
|
43
|
0.9
|
24,000
|
240,000
|
2,020
|
42
|
Total UG
Inferred
|
1,460
|
0.73
|
7.44
|
43
|
0.9
|
24,000
|
240,000
|
2,020
|
42
|
|
|
|
|
|
|
|
|
|
|
Total
Inferred
|
2,250
|
|
|
|
|
45,000
|
240,000
|
2,060
|
44
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to be read in
conjunction with the Resource table above:
|
(1)
|
Mineral Resources are
defined within an optimal Lerch-Grossman (LG) Pit Shell, generated
using metal prices for copper, zinc, gold and silver of $3.00lb,
$1.20/lb, $1,265/oz and $21/oz respectively using blocks of all
Resource categories. The mining cost and total ore based cost
(process, G&A and stockpile rehandle) applied was approximately
10-15% below the long term view on costs. Overall pit slopes varied
from 38° to 44°. NSR cut-off ($US/t) used were: $37.50 for Oxide
Phase, $37.00 for Supergene and $35.00 for Primary
Phase.
|
(2)
|
Tonnage is rounded to
the nearest 10,000 tonnes and grades are rounded to two decimal
places for copper and zinc, one decimal place for gold, and zero
decimal places for silver. Contained metal for copper and zinc are
rounded to the nearest million pounds. Contained metal for silver
is rounded to the nearest 10,000 ounces and gold is rounded to the
nearest 1,000 ounces.
|
(3)
|
Rounding as required
by reporting guidelines may result in apparent summation
differences between tonnes, grade and contained metal
content.
|
(4)
|
Tonnage and grade
measurements are in metrics units. Contained gold and silver ounces
are reported as troy ounces, contained copper and zinc as
avoirdupois pounds.
|
(5)
|
The Underground
resource was derived by defining a shape around contiguous blocks
with an NSR > $100/t outside the optimized resource pit shell.
The $100 NSR cutoff represents the processing cost plus
approximately $60/t mining cost.
|
(6)
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
|
Table 1.4: Harena Mineral Resource as at 31 December 2016.
(Phil Jankowski, MAusIMM (CP),
(BMSC))
Indicated (Open
Pit)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Primary
|
3,950
|
0.87
|
3.16
|
28
|
0.6
|
76,000
|
274,000
|
3,520
|
74
|
Total OP
Indicated
|
3,950
|
|
76,000
|
274,000
|
3,520
|
74
|
|
Inferred (Open
Pit)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Oxide
|
120
|
|
|
20
|
2.0
|
|
|
70
|
8
|
Primary
|
1,920
|
0.87
|
2.49
|
40
|
1.0
|
37,000
|
105,000
|
2,450
|
63
|
Total OP
Inferred
|
2,040
|
|
37,000
|
105,000
|
2,530
|
71
|
|
Inferred
(Underground)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Total UG
Inferred
|
23,020
|
0.93
|
4.96
|
30
|
0.8
|
473,000
|
2,515,000
|
22,050
|
558
|
|
Total
Inferred
|
25,060
|
|
510,000
|
2,620,000
|
24,580
|
628
|
|
Notes to be read in
conjunction with the Resource table above:
|
(1)
|
Mineral Resources are
defined within an optimal Lerchs-Grossman (LG) pit shell, generated
using metal prices for copper, zinc, gold and silver of $3.00/lb,
$1.20/lb, $1,265/oz and $21/oz respectively using blocks of all
Resource categories. The mining cost and total ore based cost
(process, G&A and stockpile rehandle) applied was approximately
10% below the long term view on costs with appropriate ore haulage
costs for each satellite deposit. Overall pit slopes varied from 29
deg to 35.5 deg. NSR cut-offs ($US/t) used were $40.00 for Oxide
and $41.00 for Primary.
|
(2)
|
Net Smelter Return
values were calculated for each block using all resource
categories, metal prices, recoveries, appropriate smelter terms and
downstream costs. Metallurgical recoveries, supported by
metallurgical test work, were applied as follows: Oxide zone: a
recovery of 75% and 22% were applied for gold and silver
respectively; and Primary zone; recoveries to copper concentrate of
85%, 36% and 29% were applied for copper, gold and silver
respectively. A zinc recovery to zinc concentrate of 85% was
applied.
|
(3)
|
Mineral Resources are
reported within the pit shell generated using the specified
commodity prices, using NSR block grade cut-off derived as above.
Tonnage is rounded to the nearest 10,000 tonnes and grades are
rounded to two decimal places for copper and zinc, one decimal
place for gold, and zero decimal places for silver. Contained metal
for copper and zinc are rounded to the nearest million pounds.
Contained metal for silver is rounded to the nearest 10,000 ounces
and gold is rounded to the nearest 1,000 ounces.
|
(4)
|
Rounding may result
in apparent summation differences between tonnes, grade and
contained metal content.
|
(5)
|
Tonnage and grade
measurements are in metrics units. Contained gold and silver ounces
are reported as troy ounces, contained copper and zinc pounds as
imperial pounds.
|
(6)
|
Underground Inferred
Resources were derived by selecting contiguous blocks outside the
optimized resource pit shell, with an NSR cutoff of $100, which
represents the processing cost plus approximately $60/t mining
cost.
|
(7)
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
|
Table 1.5: Northwest Mineral Resource as at 31 December 2016.
(Phil Jankowski, MAusIMM (CP),
(BMSC))
Indicated (Open Pit)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Oxide
|
|
|
|
|
|
|
|
|
|
Supergene
|
1,020
|
1.47
|
|
10
|
0.2
|
33,150
|
|
330
|
10
|
Primary
|
2,530
|
1.04
|
1.08
|
13
|
0.3
|
58,020
|
60,250
|
1,050
|
20
|
Total
Indicated
|
3,550
|
|
91,170
|
60,250
|
1,380
|
30
|
|
|
|
|
|
|
|
|
|
|
Inferred (Open Pit)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Oxide
|
500
|
|
|
18
|
3.7
|
|
|
300
|
50
|
Supergene
|
100
|
0.8
|
|
19
|
3.7
|
2,000
|
|
70
|
10
|
Primary
|
100
|
0.9
|
0.9
|
15
|
2.9
|
2,400
|
2,400
|
60
|
10
|
Total
Inferred
|
700
|
|
4,400
|
2,400
|
430
|
70
|
|
|
|
|
|
|
|
|
|
|
|
Notes to be read in
conjunction with the Resource tables for Northwest
above:
|
(1)
|
No change has
occurred Northwest since 2014 which used metal prices for copper,
zinc, gold and silver of $3.35/lb, $1.05/lb, $1,350/oz and $23/oz,
respectively. Mineral Resources are defined within an optimal
Lerchs-Grossman (LG) Pit Shell. The mining cost and total ore based
cost (process, G&A and stockpile rehandle) applied was
approximately 10% below the long term view on costs with
appropriate ore haulage costs for each satellite deposit. Overall
pit slopes varied from 39 to 45 for Northwest . NSR cut-off ($US/t)
used were: $40.70 for Oxide Phase, $39.70 for Supergene and Primary
Phase.
|
(2)
|
Net Smelter Return
values were calculated for each block using all resource
categories, metal prices, recoveries, appropriate smelter terms and
downstream costs. Metallurgical recoveries, supported by
metallurgical test work, were applied as follows:
|
|
|
a.
|
Oxide Phase;
recoveries of 88% and 22% were applied to gold and silver
respectively.
|
|
|
b.
|
Supergene Phase;
recoveries of 87%, 46% and 50% were applied for copper, gold and
silver respectively. Zinc has not been assigned a recovery as the
values are isolated on the fringes of the deposit.
|
|
|
c.
|
Primary Phase;
recoveries to copper concentrate of 87%, 36% and 29% were applied
for copper, gold and silver respectively. Recoveries to zinc
concentrate of 81%, 36% and 29% were applied for zinc, gold and
silver respectively.
|
(3)
|
Mineral Resources are
reported within the pit shell generated using the specified
commodity prices, using NSR block grade cut-off derived as above.
Tonnage is rounded to the nearest 10,000 tonnes and grades are
rounded to two decimal places for copper and zinc, one decimal
place for gold and zero decimal places for silver. Tonnages and
grades for the Inferred category are further rounded reflecting the
uncertainty that attaches to this category. Contained metal for
copper and zinc are rounded to the nearest ten thousand
pounds.
|
(4)
|
Rounding as required
by reporting guidelines may result in apparent summation
differences between tonnes, grade and contained metal
content.
|
(5)
|
Tonnage and grade
measurements are in metrics units. Contained gold and silver ounces
are reported as troy ounces, contained copper and zinc pounds as
imperial pounds.
|
Table 1.6: Hambok Mineral Resource as at 31 December 2016.
(Phil Jankowski, MAusIMM (CP),
(BMSC))
Indicated (Open Pit)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Oxide
|
|
|
|
|
|
|
|
|
|
Primary
|
6,860
|
1.14
|
1.86
|
10
|
0.2
|
172,370
|
281,240
|
2,260
|
40
|
Total
Indicated
|
6,860
|
|
172,370
|
281,240
|
2,260
|
40
|
|
|
|
|
|
|
|
|
|
|
Inferred (Open Pit)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Oxide
|
20
|
|
|
17
|
1.5
|
|
|
10
|
1
|
Primary
|
2
|
0.9
|
0.2
|
8
|
0.2
|
30
|
10
|
0
|
0
|
Total
Inferred
|
22
|
|
30
|
10
|
10
|
1
|
|
Notes to be read in
conjunction with the Resource tables for Hambok above:
|
(1)
|
No change has
occurred to Hambok since 2014 which used metal prices for copper,
zinc, gold and silver of $3.35/lb, $1.05/lb, $1,350/oz and $23/oz,
respectively. Mineral Resources are defined within an optimal
Lerchs-Grossman (LG) Pit Shell. The mining cost and total ore based
cost (process, G&A and stockpile rehandle) applied was
approximately 10% below the long term view on costs with
appropriate ore haulage costs for each satellite deposit. Overall
pit slopes was 40 overall for Hambok (preliminary assessment). NSR
cut-off ($US/t) used were: $44.45 for Oxide Phase and $43.45 for
Primary Phase.
|
(2)
|
Net Smelter Return
values were calculated for each block using all resource
categories, metal prices, recoveries, appropriate smelter terms and
downstream costs. Metallurgical recoveries, supported by
metallurgical test work, were applied as follows:
|
|
|
a.
|
Oxide Phase;
recoveries of 88% and 22% were applied to gold and silver
respectively.
|
|
|
b.
|
Primary Phase;
recoveries to copper concentrate of 88%, 87%, 36% and 29% were
applied for copper, zinc, gold and silver respectively. Preliminary
metallurgical characterization studies, but not full testing, have
been completed for Hambok.
|
(3)
|
Mineral Resources are
reported within the pit shell generated using the specified
commodity prices, using NSR block grade cut-off derived as above.
Tonnage is rounded to the nearest 10,000 tonnes and grades are
rounded to two decimal places for copper and zinc, one decimal
place for gold and zero decimal places for silver. Contained metal
for copper and zinc are rounded to the nearest ten thousand
pounds.
|
(4)
|
Rounding as required
by reporting guidelines may result in apparent summation
differences between tonnes, grade and contained metal
content.
|
(5)
|
Tonnage and grade
measurements are in metrics units. Contained gold and silver ounces
are reported as troy ounces, contained copper and zinc pounds as
imperial pounds.
|
Table 1.7: Asheli Mineral Resource as at 31 December 2016.
(Phil Jankowski, MAusIMM (CP),
(BMSC))
Inferred
(Underground)
|
Contained
Metal
|
|
Tonnes
|
Copper
|
Zinc
|
Silver
|
Gold
|
Cu
|
Zn
|
Ag
|
Au
|
Domain
|
(`000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
('000
lbs)
|
('000
lbs)
|
('000
Oz)
|
('000
Oz)
|
Primary
|
2,400
|
1.86
|
8.59
|
30
|
0.4
|
98,400
|
455,000
|
2,320
|
31
|
Total
Inferred
|
2,400
|
1.86
|
8.59
|
30
|
0.4
|
98,400
|
455,000
|
2,320
|
31
|
|
Notes to be read in
conjunction with the Resource table above:
|
(1)
|
Mineral Resources are
defined within an interpreted massive sulphide body. No cutoffs
have been applied due to the dimensions and continuity of the
mineralisation, and the low confidence in the local grade estimate
as reflected in the resource classification.
|
(2)
|
Tonnage is rounded to
the nearest 10,000 tonnes and grades are rounded to two decimal
places for copper and zinc, one decimal place for gold, and zero
decimal places for silver. Contained metal for copper and zinc are
rounded to the nearest million pounds. Contained metal for silver
is rounded to the nearest 10,000 ounces and gold is rounded to the
nearest 1,000 ounces.
|
(3)
|
Rounding as required
by reporting guidelines may result in apparent summation
differences between tonnes, grade and contained metal
content.
|
(4)
|
Tonnage and grade
measurements are in metrics units. Contained gold and silver ounces
are reported as troy ounces, contained copper and zinc as
avoirdupois pounds.
|
(5)
|
An open pit
optimisation failed to produce any optimal pit. The resource is
being considered as having potential for underground
mining.
|
(6)
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
|
|
|
SOURCE Nevsun Resources Ltd.