Nevsun Resources Ltd. (TSX:NSU) (NYSE MKT:NSU) is pleased to announce that the Bisha Mine in Eritrea has reached commercial production for the copper expansion with the successful commissioning of its flotation plant. Since commissioning commenced in early Q3, the operation has produced approximately 60,000 tonnes of copper concentrate and is on track to meet guidance of 30 to 50 million pounds of copper production in 2013.
Nevsun's President Cliff Davis states "We are very pleased to advance this tremendous deposit to the next stage of production and we are looking forward to significant 2014 cash flow to add to our already strong balance sheet. Our continuing success can be attributed to our staff, contractors and the support of the Government of Eritrea. The State has understood from the beginning that responsible development of the mining industry has the potential to be a significant economic catalyst to the country over the next several years. Our success could not be achieved without the support of the Ministry of Energy and Mines and the Eritrean National Mining Corporation."
In the past month the plant has been achieving over 80% of its targeted metrics of feed grade, recovery rates, and copper produced in concentrate. The transportation logistics from site to Massawa port are working well and Bisha has made three ocean shipments totalling approximately $60 million in value, with another ship loading this week in Massawa.
Pre-commercial production sales proceeds and production costs to-date, including mining, processing and general and administrative costs directly attributable to the project, will be capitalized against the build cost. The build cost of the copper plant and infrastructure was approximately $110 million, compared to a budget of $125 million.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is a Vancouver-based mining company. Nevsun's 60%-owned Bisha Mine commenced commercial production in February 2011 and ranks as one of the highest grade open pit copper mines in the world. Nevsun has a strong balance sheet to grow shareholder value through exploration at Bisha and acquisition of additional mining assets.
