VANCOUVER, Jan. 10, 2018 /PRNewswire/ - Nevsun Resources
Ltd. (TSX:NSU) (NYSE American:NSU) ("Nevsun" or the "Company") is
pleased to report its 2017 fourth quarter and full year production
results (100% basis) for the Bisha Mine in Eritrea for the year ending December 31, 2017.
Bisha Full Year 2017 Operating Highlights
- Produced 207.8 million pounds of zinc in zinc concentrate, at
the top end of its guidance of 190-210 million pounds
- Produced 18.0 million pounds of copper in copper concentrate,
below guidance of 20-30 million pounds
- Produced 55.1 million pounds of zinc in Q4 2017 as zinc
recoveries continued to improve in H2 2017 from H1 2017
- Moved a record 5.3 million tonnes of material in Q4 2017
Peter Kukielski, Nevsun CEO,
commented, "We continued to see positive results from our primary
ore metallurgy improvement program in the second half of 2017 with
zinc recoveries now consistently around 70%. A specialist
contractor was brought in to oversee heavy mining equipment
maintenance, which resulted in improved equipment availability and
allowed Bisha to move a record amount of waste in Q4. This
completed the necessary catch up on stripping of the Bisha pit to
allow the mine to access and process 100% fresh primary ore in
2018."
Mr. Kukielski continued, "We look forward to providing the
market with our 2018 outlook for both Bisha and Timok later this
month."
Preliminary Q4 2017 and full year 2017 operating results are
summarized below:
Mining
|
Q4
2017
|
Full Year
2017
|
Ore mined,
tonnes
|
362,000
|
2,050,000
|
Waste mined,
tonnes
|
4,981,000
|
15,960,000
|
Strip Ratio (using
tonnes)
|
13.8
|
7.8
|
|
|
|
Processing
|
Q4
2017
|
Full Year
2017
|
Ore milled,
tonnes
|
520,000
|
2,233,000
|
Zinc feed grade,
%
|
6.9%
|
6.2%
|
Copper feed grade,
%
|
1.2%
|
1.0%
|
Recovery, % of
zinc
|
69.3%
|
68.2%
|
Recovery, % of
copper
|
31.0%
|
37.0%
|
Zinc in concentrate
produced, tonnes
|
24,700
|
94,000
|
Zinc in concentrate
produced, millions of pounds
|
55.1
|
207.8
|
Copper in concentrate
produced, tonnes
|
1,700
|
8,000
|
Copper in concentrate
produced, millions of pounds
|
4.1
|
18.0
|
Copper production in Q4 was, as in Q3, impacted by processing of
stockpiled zinc-only ore (previously described as "boundary"
material). Zinc-only ore does not result in any recovery of copper
into copper concentrate. Zinc-only ore was processed due to a
shortage of fresh primary ore in the Bisha Main pit in H2 2017.
During the quarter, stripping levels increased to 5.0 million
tonnes from an average of 3.7 million tonnes per quarter over the
previous three quarters. Waste stripping benefitted from
shorter haulage distances due to in-pit waste dumping and from
improved heavy mining equipment availability due to the employment
of an experienced third-party in overseeing maintenance. Mining
benches, walls and faces in the Bisha main pit continued to be
re-established to improve mining efficiency with the goal of
accessing 100% fresh primary ore in 2018.
The majority of new mining equipment announced in Q3 2017 and
purchased in Q4 2017 will arrive on site during H1 2018. This
equipment will replace aging equipment on site, improving
mechanical availabilities which, along with continued in-pit
dumping of waste, will assist the mine in meeting its planned
material movement for the upcoming year.
Nevsun expects to release its 2018 outlook and production
guidance later in January.
2017 Financial Results Release Date
Nevsun plans to release its annual 2017 and fourth quarter 2017
financial results on Thursday, March 1,
2018, after close of trading, with a conference call to
follow on Friday, March 2, 2018 at
8am Vancouver / 11am
Toronto, New York / 4pm
London. Conference call details
follow:
North
America: 1 888-390-0546 / +1 416-764-8688 / +1
778-383-7413
UK: 0800 652 2435 (toll free)
Other International: +1 416-764-8688 / +1 778-383-7413The
conference call will be available for replay until March 9, 2018, by calling 1 888-390-0541 / +1
416-764-8677 and entering passcode 946987#.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is the 100% owner of the high-grade
copper-gold Timok Upper Zone and 60.4% owner of the Timok Lower
Zone in Serbia. The Timok Lower Zone is a partnership with
Freeport-McMoRan Exploration Corporation ("Freeport") which
currently owns 39.6% and upon completion of any feasibility study,
Nevsun Resources Ltd. will own 46% and Freeport will own 54%. Nevsun generates cash
flow from its 60% owned copper-zinc Bisha Mine in Eritrea.
Nevsun is well positioned with a strong debt-free balance sheet to
grow shareholder value through advancing Timok 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, objectives 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 production, processing and recoveries of zinc and
copper, mineral reserve and resource estimates, mining efficiencies
and access to mineral reserves, goals, strategies, future growth,
planned future acquisitions and explorations activities,
anticipated C1 cash costs to produce zinc or copper, resolution of
metallurgical challenges from variable ore materials to produce
concentrate and the ability to increase processing and recovery
rates of zinc and copper, achievement of and timing for achievement
of any key milestones including, planned mineral movement at the
Bisha Mine. 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 Company is unable to increase stripping to mine
greater tonnages of primary ore or increase mining efficiencies;
and * the metallurgical challenges on the variable ore materials
being processed on a timely basis or at all or increase recovery
rates of zinc and copper to initial design levels; and other risks
that are more fully described in the Company's Annual Information
Form for the fiscal year ended December 31,
2017, 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 AIF 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.
"Peter Kukielski"
Peter Kukielski
President & Chief Executive Officer
SOURCE Nevsun Resources Ltd.