2009 Press Releases
September 21, 2009
Bisha Project Secures Sales Contracts
Highlights
- Metal contracts signed for future sale of copper and gold dore
- Kin Communications hired as Nevsun's Investor Relations contact
Nevsun Resources Ltd. (TSX:NSU)(NYSE Amex:NSU) is pleased to announce that its Bisha Project has entered into metal sales contracts for its future gold and copper production at the Bisha Mine in Eritrea, Africa. Pricing for all metals will be fixed at spot rates at the time of delivery.
The Bisha Mine is expected to begin production in the fall of 2010, with a projected 10 year mine life. Bisha's gold will be refined in Switzerland and Canada by two major international companies while the copper concentrate will be shipped to major smelters in Europe and India.
Metal production within the first two years is estimated at approximately 900,000 ounces of payable gold, followed by over 500,000,000 pounds of payable copper in years 3-5, plus in years 5-10 an additional 1 billion pounds of payable zinc and 200,000,000 pounds of copper.
As a result of very high grade gold ore, the expected $200 per ounce operating costs are much lower than industry averages and accordingly the mine will generate significant cash flow for the Company and the Government of Eritrea. The resulting cash flow should enable Nevsun to quickly pay off project debt, allow for mine expansion and provide significant returns to shareholders.
Nevsun considers the metal sales contracts as a milestone and as another vote of confidence in the Project and the country of Eritrea. The Eritrean Government has been very supportive of the Bisha economic development and has been a strong partner, both financially and logistically.
Nevsun has hired Kin Communications to provide corporate communications and investor relations services. Kin is located in Vancouver and will be in continuous contact with Nevsun's management, shareholders and media to further communicate the corporate objectives of Nevsun Resources Ltd. Kin may be reached at the contact details noted below.
In addition, John Clarke has now resigned as a Director of the Company. The Board thanks John for his significant contribution over the past several years.
Forward Looking Statements:
The above contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.
NEVSUN RESOURCES LTD.
Cliff T. Davis
President & Chief Executive Officer
For further information, please contact:
Kin Communications
Tel: 604 684 6730
Toll free 1 866 684 6730
Email: ir@kincommunications.com
Website: www.nevsun.com
