At $1,400 per ounce gold and $22 per ounce silver, the potential revenue to be realized from this material alone is believed to exceed $100 million over the next 6 to 12 months. The pyrite sand ore was never included in the latest mineral reserve estimate due to its unconsolidated nature and inability to core drill and sample assay. The economics of processing this additional ore through the new flotation plant more than justifies the slight delay to originally planned start of copper concentrate production.
Based upon the above, 2013 guidance is revised to 110,000 ounces gold produced (excluding the 25,000 to 30,000 ounces in the northeast layback but including the 30,000 ounces from the pyrite sand flotation tails) and between 30 to 50 million pounds of contained copper in concentrate. After ramp-up of copper supergene ore is completed in Q1 2014, the Bisha operation is expected to produce in the order of 200 million pounds of copper on an annualized basis at less than $1.00 per pound cash cost.
Change in Gold Index
The Company has been advised that after close of trading on June 21, 2013, Nevsun will be removed from NYSE Arca Gold Miners Index because Nevsun's revenue will be switching to majority copper from majority gold during 2013. Nevsun has been advised that the Van Eck Gold Miners ETF is required to sell its position in Nevsun since the ETF tracks the index. During March of this year a similar event occurred when Nevsun was deleted from the Van Eck's proprietary Market Vectors Junior Gold Miners index, at which time the company experienced very significant trading volumes and was essentially price neutral.
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," "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 regarding the Company's continuing operations in Eritrea including but not limited to future gold and copper production, copper phase expansion and the transition to copper production, all of which 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, unforeseen government actions or other events; (iv) the Company experiences the loss of key personnel; (v) the Company's operations 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, lenders, 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; or (ix) the Company incurs unanticipated costs as a result of the transition from the oxide phase of the Bisha mining operations to the copper phase in 2013; (x) are associated with the speculative nature of exploration activities, periodic interruptions to exploration, failure of drilling, processing and mining equipment, the interpretation of drill results and the estimation of mineral resources and reserves, changes to exploration and project plans and parameters and other risks are more fully described in the Company's Management Discussion and Analysis for the fiscal year ended December 31, 2012, which is 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.
Please see the Company's Annual Information Form for the fiscal year ended December 31, 2012, and the Company's Management Discussion and Analysis for the year ended December 31, 2012, for a more complete discussion of the risk factors associated with our business.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is a Vancouver-based mining company with an operating mine in Eritrea. Nevsun's 60%-owned Bisha Mine commenced commercial gold production in February 2011 and is transitioning to copper/gold production in H2 2013. Management expects the Bisha Mine will rank as one of the highest grade open pit base metal deposits in the world.
NEVSUN RESOURCES LTD.
Cliff T. Davis
President & Chief Executive Officer
Toll free: 1 866 684-6730
Most Popular Stories
- Twitter Names Woman to Board
- Aspen Contracting Adding 300 Jobs
- Obamacare Doing Just Fine, Ky. Governor Says
- Rand Paul Signs up for Obamacare
- Hispanic Employment Improves in November
- U.S. Chamber to Run Ads in Idaho, W.Va.
- U.S. Unemployment Rate Dips to 7 Percent
- Consumer Spending Rises, Incomes Fall
- American Eagle Issues Weak Q4 Outlook
- NSA Tracks 5 Billion Cellphone Records a Day