Highlights include progress at Timok in Serbia and an extension to the Bisha mine life in Ertitrea.
Nevsun Resources (TSX:NSU) has reported its financial results for the three and six months ended June 30, 2018.
As highlighted in the press release:
- Broke ground on the Timok upper zone exploration decline.
- Announced initial Timok lower zone inferred mineral resource of 1.7 billion tonnes grading 0.86 percent copper and 0.18 grams per tonne gold (0.96 percent copper equivalent) for 31.5 billion pounds of copper and 9.6 million ounces of gold.
- Announced Bisha open pit extension through 2022.
- Achieved copper recoveries of 69.4 percent with implementation of the revised reagent scheme in June.
- On track to meet full year 2018 guidance with quarterly production of 51.3 million pounds of zinc and 8.6 million pounds of copper.
- C1 cash costs also within guidance at US$0.71 per payable pound of zinc sold on a by-product basis.
- Revenue adversely impacted by lower zinc prices in June, resulting in downward provisional pricing adjustments.
- Unrestricted cash balance of US$125.1 million at the end of the quarter, of which US$110.8 million is attributable to Nevsun shareholders.
Nevsun CEO Peter Kukielski said:
“We improved metallurgical performance at Bisha in the second quarter with the implementation of the new reagent scheme. Production volumes were down principally due to the processing of lower grade material, however we expect to revert to processing higher grade material through the balance of 2018. Most importantly, we were able to convert a portion of our extensive resources to reserves in a capital efficient, economically attractive mine life extension, which is expected to extend Bisha cashflows, reducing Timok funding requirements.
“At Timok, the initial resource declaration for the lower zone confirmed the project as one of the largest copper porphyry discoveries in recent years and highlighted why we are so optimistic about the deposit’s long-term prospects. At the upper zone, the ground-breaking ceremony for the exploration decline demonstrated strong support from the Serbian government and other important local stakeholders. In the third quarter, we will complete the trade off study on the ramp up scenario for the Timok upper zone. We also continue to engage with potential strategic partners who could both invest in Nevsun and potentially bring complementary technical or other capabilities required for successful execution of the project.”