Nevsun Resources Ltd.
) has performed better than its expectations by producing 87,000
ounces of gold in the second quarter. The 6% improvement in output,
compared with the first quarter of 2012, stemmed from
higher-than-expected grades in portions of the transitional oxide
zone at its Bisha mine.
About 500,000 tons of ore were mined at the company's flagship
Bisha mine, grading at 6.04 g/t of gold. This is a substantial
improvement from the first quarter, in which the company mined
349,000 tons at 4.71 g/t of gold.
For fiscal 2012, the company still expects gold production in the
range of 2.4 to 2.6 million tons. During its first quarter
conference call, Nevsun hiked its guidance by approximately 25%
owing to unusually high gold grades encountered in April, 2012.
However, it added that the guidance might be revised when it
releases its full second quarter results in August, taking into
account the production results in July.
Earlier this month, Nevsun was granted a mining license for the
Harena deposit. The Harena deposit, located approximately 9 km
south of the Bisha plant, is a satellite VMS deposit with oxide
gold and base metal sulphide ores. Bisha has all the equipment on
site to start mining operations at Harena.
Henceforth, Harena's reserves and resources will be included in
the Bisha figures. The Harena gold oxide ore is of a lower grade
and thus will be blended with the higher grade Bisha oxide.
The company also noted that the copper plant expansion is in
progress and slated for start-up in mid-2013. Orders have been
placed for the equipments required to export copper concentrate by
mid-2013. In addition, Nevsun is on the lookout for expansion
opportunities of both copper and gold projects in Africa, the
Americas and Europe.
Vancouver, Canada-based Nevsun Resources, a gold and base metal
developer, together with its subsidiaries, engages in the
exploration, development, extraction, processing, and reclamation
of mineral properties in Africa. The company's main focus is on its
Bisha Mine in Eritrea, East Africa.
Bisha is a large precious and base metal volcanogenic massive
sulphide deposit that went into commercial gold-silver production
in February 2011. The Bisha Mine, with more than 12 years of
current reserves, ranks as one of the highest grade open pit mines
in the world.
GOLD FIELDS-ADR (GFI): Free Stock Analysis
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Nevsun Resources competes with
Gold Fields Ltd.
Randgold Resources Limited
). Shares of Nevsun Resources currently retain a Zacks #3 Rank
(short-term Hold rating).