VANCOUVER, April 20, 2017 /CNW/ - Nevsun Resources Ltd.
(TSX: NSU) (NYSE MKT: NSU) ("Nevsun" or the "Company") is pleased
to provide an update on the high-grade Timok Upper Zone ("Timok
UZ") project in Serbia.
Highlights
- Overall PFS remains on track for September 2017
- 30,000 metre Timok UZ resource infill drill program
completed
- Preliminary assay results in line with the current
resource
- Metallurgical test work well advanced
- Condemnation, hydrology and geotechnical drilling nearing
completion
- Exploration decline permitting underway with construction
start expected in Q4 2017
- New greenfield exploration program commencing on Timok UZ
exploration license
"We are very satisfied with how the Timok UZ project is coming
together. With over 336 Serbian nationals on staff or on contract,
the team is executing the pre-feasibility study ("PFS") and further
advancing the project as we remain on track to deliver the PFS in
September and break ground on an exploration decline in Q4,"
commented Cliff Davis, Nevsun
CEO. Mr. Davis further commented, "Due to our strong cash
position and Bisha cash flow, we are embarking on a regional
exploration program targeting more high-grade Upper Zone type
mineralization. The licence area remains under-explored, even
adjacent to the Timok UZ resource, and a new discovery of an
additional upper zone would be game changing."
Infill Drilling Program Complete
The infill drilling of the Timok UZ resource is essentially
complete with 29,700 metres of drilling in 36 holes. Assays
for 10% of the holes are outstanding and will be released in due
course. Condemnation, geotechnical and metallurgical drill
holes are also nearing completion. Data and analyses from these
holes will feed into the various on-going PFS work streams.
The infill drilling has so far confirmed the high-grade and bulk
portion of the orebody. The Timok UZ resource will be updated with
the PFS study release in September
2017, with the accompanying NI 43-101 Technical Report to be
filed by mid-November.
Timok Upper Zone Project Update
Rakita doo ("Rakita"), a Serbian company, is the operator of the
Timok UZ project. The team in Serbia (including contractors
and consultants) currently has over 336 Serbian nationals employed
on the project supplemented with 65 expatriates with specific
technical and project management expertise. In addition, the
project is supported by various external specialty consultants
including Knight Piesold, Ausenco, and SRK. SRK will manage the
physical PFS report and associated NI 43-101 Technical Report.
All technical study work (mining, metallurgy, hydrology,
tailings storage facility, and infrastructure) is progressing to
plan with the metallurgical work playing a key role in the overall
design. Primary metallurgical assessments underway are copper
concentrate flotation, gold recovery from pyrite, and arsenic
management. The exploration decline design is complete and
the tender process has begun. Expressions of interest for the
decline construction have gone to market with a plan to award the
contract in August and start construction in Q4 2017.
Overall Timok UZ project permitting is progressing well
including the baseline Environmental and Social Impact Assessment
("ESIA"). Decline permitting is also near completion with the final
permits expected in time to start construction in Q4. Land
acquisition for the decline is complete and additional land
requirements, important for overall project timing, continue to
advance.
Commences Timok Greenfield Regional Exploration
Nevsun has approved the budget for Rakita to undertake an
exploration program targeting additional high grade Upper Zone
style mineralization under the Miocene basement in the immediate
area around Timok UZ and on the additional exploration licenses to
the north of Bor. The work around the Timok UZ includes 10
diamond drill holes of approximately 1,000 metres each with
follow-up borehole electromagnetic surveys. The work on the
northern licenses is expected to include a geophysical survey
(VTEM) over the properties looking for shallow Upper Zone style
mineralization followed by ground geophysics (gravity), soil
geochemistry and finally drill testing anomalies with 4,000 metres
of drilling.
The total proposed budget is $4
million in 2017 and is incremental to the 2017 Outlook and
Guidance news release (February 23,
2017) exploration budget.
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 Bisha
copper-zinc 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
SOURCE Nevsun Resources Ltd.