VANCOUVER, Jan. 12, 2017 /PRNewswire/ - Nevsun
Resources Ltd. (TSX:NSU)(NYSE MKT:NSU) ("Nevsun" or the "Company")
is pleased to report its operating results for the year ending
December 31, 2016 and a review of
2016 achievements against corporate objectives.
2016 PERFORMANCE HIGHLIGHTS
- Achieved top quartile safety performance at Bisha with no lost
time injuries
- Completed the acquisition of the high grade Timok copper-gold
project in Serbia
- Successfully integrated, ramped-up and are now rapidly
advancing the Timok project to production
- Completed the Bisha zinc project on-time and under budget,
declaring commercial production October
1
- Bisha production:
- Exceeded supergene copper guidance producing 55.8 million
pounds at a C1 cash cost of $1.03 per
payable pound sold
- Achieved zinc guidance, producing 90 million pounds from
primary ore
- Achieved gold guidance, monetizing 90,000 gold equivalent
ounces from stockpiles
- Secured Bisha District through significantly expanded
exploration rights
- Continued to pay peer leading dividends
Cliff Davis, Nevsun's CEO,
commented, "Nevsun had a strong 2016 delivering on our primary
objectives as set out in February of last year. First and
foremost, we maintained an incredible safety record in our
operations, solidly in the top quartile in the sector.
Second, we executed on our disciplined M&A strategy by
acquiring the Timok copper-gold project. Finally, we had a solid
year at Bisha, beating guidance on supergene copper production and
delivering the Bisha zinc expansion on-time and under budget."
Mr. Davis continued, "We enter 2017 with a strong balance sheet
and the leading growth profile in the sector. The clear
priority remains continuing resolution of the challenges related to
the copper flotation circuit at Bisha and ensuring the high-grade
Timok Project remains on track to deliver a pre-feasibility by
September 2017." Mr. Davis
emphasized, "We have a strong team focused on delivering value to
our shareholders through rapidly advancing the high-grade Timok
project to production."
A summary of Bisha's quarterly and full year operating results
follow.
|
Q1 2016
|
Q2 2016
|
Q3 2016
|
Q4 2016
|
2016
|
Mining
|
|
|
|
|
|
Ore mined,
tonnes(1)
|
1,337,000
|
964,000
|
672,000
|
670,000
|
3,643,000
|
Waste mined,
tonnes
|
2,028,000
|
2,448,000
|
2,446,000
|
2,445,000
|
9,367,000
|
Strip ratio, (using
tonnes)
|
1.5
|
2.5
|
3.6
|
3.6
|
2.6
|
Processing –
Supergene Ore
|
|
|
|
|
|
Ore milled,
tonnes(2)
|
584,000
|
471,000
|
-
|
-
|
1,055,000
|
Copper feed grade,
%
|
3.1
|
2.5
|
-
|
-
|
2.8
|
Recovery, % of
copper
|
87.0
|
82.9
|
-
|
-
|
85.2
|
Copper concentrate
grade, %
|
23.0
|
21.2
|
-
|
-
|
22.2
|
Copper in concentrate
produced, millions of pounds
|
34.2
|
21.6
|
-
|
-
|
55.8
|
Copper in concentrate
produced, tonnes
|
15,500
|
9,800
|
-
|
-
|
25,300
|
Payable copper in
concentrate sold, millions of pounds
|
34.9
|
22.9
|
0.8
|
-
|
58.6
|
Payable copper in
concentrate sold, tonnes
|
15,900
|
10,300
|
300
|
-
|
26,500
|
Payable gold in
concentrate sold, ounces
|
6,000
|
4,500
|
200
|
-
|
10,700
|
Payable silver in
concentrate sold, ounces
|
226,000
|
192,000
|
7,000
|
-
|
425,000
|
Processing – Primary
Ore
|
|
|
|
|
|
Ore milled,
tonnes
|
-
|
134,000
|
510,000
|
579,000
|
1,223,000
|
Zinc feed grade,
%
|
-
|
5.0
|
5.8
|
5.7
|
5.7
|
Copper feed grade,
%
|
-
|
1.1
|
1.0
|
0.8
|
0.9
|
Recovery, % of zinc
(3)
|
-
|
33.8
|
59.1
|
63.6
|
58.8
|
Zinc concentrate
grade, %
|
-
|
41.4
|
41.3
|
38.8
|
40.0
|
Zinc in concentrate
produced, millions of pounds(4)(5)
|
-
|
5.1
|
38.6
|
46.5
|
90.2
|
Zinc in concentrate
produced, tonnes(4)(5)
|
-
|
2,300
|
17,500
|
21,100
|
40,900
|
Payable zinc in
concentrate sold, millions of pounds
|
-
|
-
|
21.2
|
35.2
|
56.4
|
Payable zinc in
concentrate sold, tonnes
|
-
|
-
|
9,600
|
16,000
|
25,600
|
(1)
|
Ore tonnes mined in
2016 include 902,000 tonnes of supergene ore and 2,741,000 tonnes
of primary ore.
|
(2)
|
The supergene phase
of the Bisha mine ceased on June 2, 2016.
|
(3)
|
This represents the
overall combined zinc recovery from both the copper and zinc
flotation circuits. Copper recovery
for both circuits averaged 41.2% in Q3 2016 and 60.7% in Q4
2016.
|
(4)
|
The Company as yet
has not been able to produce a commercially saleable copper
concentrate due to metallurgical
challenges when processing the variable primary ore. The by-product
revenues from copper, gold and silver in the
zinc concentrates have not been material during 2016.
|
(5)
|
The zinc in
concentrate inventory at December 31, 2016 was approximately 20.4
million pounds.
|
2017 Outlook and Guidance
Nevsun is currently completing its annual forecasting process at
Bisha where the work on a robust geo-metallurgical resource model
and the copper flotation plant metallurgy are ongoing. We
expect to provide our 2017 Outlook and update on the resolution to
the challenges related to the copper flotation circuit in
mid-February 2017.
2016 Financial Results Release Date
The Company plans to release its annual 2016 and fourth quarter
2016 financial results on Thursday, February
23, 2017, after close of trading, with a conference call to
follow on Friday, February 24, 2017,
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 / +1 778-383-7413
The conference call will be available for replay until
March 3, 2017, by calling 1
888-390-0541 / +1 416-764-8677 and entering passcode 192626#.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is the 60% owner of the high grade Bisha
Mine in Eritrea. Nevsun is well positioned to grow
shareholder value through advancing the high-grade copper-gold
Timok Project in Serbia to production. Nevsun has a strong
debt-free balance sheet and a peer leading quarterly dividend.
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 Management Information Circulars
dated May 18, 2016 with respect to
the proposed arrangement between Reservoir Minerals Inc. and
Nevsun, and the Company's Annual Information Form for the fiscal
year ended December 31, 2015, 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, 2015, 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.