Proactive investorsLogo Proactive Investors UK Website

Search field

1 year chart

digital-look imported chart image

1 day chart

digital-look imported chart image
Additional information
Additional Information
Market: TSX, AMEX
Sector: Gold Mining
Epic: NSU
News: Latest news
Web Site: Nevsun Resources
Other Articles: 17-02-201004-02-201008-12-2009

RSS - Subscribe to the News Today on Proactive UK ▼

Thursday September 02, 11:00Baobab Resources identifies distinct ore domain at Tete’s South Zone

Baobab MD Ben James said the latest drilling results from the Tete project's South Zone characterise a distinct, higher mass recovery, ore domain.

FULL ARTICLE ►

RSS - Subscribe to the News Today on Proactive AU ▼

Thursday September 02, 08:15Indonesia edges closer toward uranium mining and nuclear power

After nearly five decades of national debate on the issue, Indonesia's central government may finally be ready to develop a national nuclear policy, which may lead to domestic uranium mining.

FULL ARTICLE ►

RSS - Subscribe to the News Today on Proactive CN ▼

Wednesday September 01, 01:25Green Dragon Gas reports significant growth as China’s thirst for energy continues

China's thirst for energy resources has continued with an increased focus on domestic supplies of gas, Green Dragon Gas chairman Randeep Grewal said today. In the company's interim results, [...]

FULL ARTICLE ►
Nevsun Resources

Nevsun Resources

Nevsun Resources is a gold and base metal explorer/developer with a focus on developing mining projects in Africa. Nevsun is currently focused on advancing its high grade gold, copper and zinc Bisha Project in Eritrea.

Monday, November 03, 2008

Nevsun Resources – Finance lined up to develop Bisha

by Sami Kiri company news image

When most of the mining companies find it hard to raise money for exploration Toronto and AMEX listed Nevsun Resources (TSX/AMEX: NSU) has secured the approval for a US$89 million commitment from the Industrial Development Corporation of South Africa (“IDC”). Funds are expected to be utilised for the development of the Bisha Project, Eritrea.  This proves the old adage that there are always investors for good projects.

Nevsun presented in one of our investor forums in Toronto during which we as well as our readers had an opportunity to interview the management. John Clarke, Vice Chairman, was optimistic about their ability to move the Bisha Project forward. Bisha is a large precious metal and base metal-rich volcanogenic massive sulphide (VMS) deposit located in a newly discovered VMS district in western Eritrea.  Suggested models for the deposit include felsic dominated bimodal-siliclastic VMS and Noranda/Kuroko type deposits and a comparison has been made to the Matagami VMS district in Quebec. Nevsun and the Eritrean National Mining Corporation (“ENAMCO”) (collectively the “Sponsors”) own the Project.  

IDC is a national development finance institution established to promote economic growth and industrial development in South Africa. Its mandate includes the rest of the Africa continent with a primary objective to contribute to balanced, sustainable economic growth in Africa. In addition to IDC, several other potential lenders have also submitted indicative terms for the remaining funds required and the Sponsors are in the process of evaluating these proposals. Nevsun is clearly not short of investors for Bisha.

Nevsun has also provided updated project economics for Bisha. Benefiting from low site operating costs throughout the projected mine life, Bisha is characterised by its high returns and quick capital payback. A strengthening US dollar is expected to improve the economics further. Bisha has a project Internal Rate of Return of 42% and a pay back period of 1.6 years; impressive by any standard. These are based on conservative assumptions such as Au $600/oz, Cu $1.50/lb, Zn $0.50/lb and Ag $8/oz, and a Preproduction capex of $250 million. No wonder Nevsun has financial backers!

Brisk development activities are underway at Bisha. During spring/summer 2008 Nevsun has upgraded construction camp and facilities. In August 2008 SENET, the EPCM contractor, was mobilized to site enabling site clearance and heavy earth moving for plant construction. In September/ October 2008 Nevsun has advanced town site construction for 400 people. The company is well on its way to get Bisha to production.

Market uncertainties may make investors nervous but attempts by the management of resource companies to advance their projects usher considerable confidence both on the company and projects themselves. Nevsun’s Bisha project and its continued progress is one of those few examples where the management continues with delivering the business plan promised, regardless of market conditions. We will continue our readers tuned in to Nevsun story and soon will get John Clarke and his team present Nevsun in our London forums.

About Nevsun Resources

Nevsun Resources Ltd. is a gold and base metal explorer/developer with a focus on developing mining projects in Africa. Nevsun is currently focused on advancing its high grade gold, copper and zinc Bisha Project in Eritrea. The project is developed with the Eritrean government as a partner. The project has 27.2 million tonnes of measured and indicated resource and 11.7 million tonnes of inferred resource (43-101 compliant).

 

AddThis Feed Button
Register here to be notified of future Nevsun Resources articles.

Other Nevsun Resources articles


Other Nevsun Resources news

More news ►

Investors interested in Nevsun Resources recently viewed


No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.