NEVSUN RESOURCES VANCOUVER, March 23, 2017 /PRNewswire/ - Nevsun Resources Ltd. (TSX: NSU) (NYSE MKT: NSU) ("Nevsun" or the "Company") is pleased to announce the updated mineral resource estimates effective December 31, 2016, for the Bisha, Harena and Asheli deposits in Eritrea. These updated resources form the first part of the annual year end mineral resource and mineral reserve statement for 2016. The updated mineral reserve estimate, currently in-progress, should be released in late May or early June 2017.
Highlights
-- Increased Harena Inferred resources by nearly 130% to 25 million tonnes
grading 0.93% copper, 4.76% zinc, 0.8 g/t gold and 31 g/t silver
-- Harena remains open with further drilling ongoing in 2017
-- Maiden Inferred resource for Asheli totalling 2.4 million tonnes grading
1.86% copper, 8.59% zinc, 0.4 g/t gold, and 30 g/t silver
-- Additional targets immediately along strike of Asheli presently being
evaluated
-- Increased Bisha district Inferred resources by over 100% to 31 million
tonnes containing 667 million pounds copper, 3.3 billion pounds zinc,
780 thousand ounces gold, and 30 million ounces silver
-- Measured and Indicated resources of 38 million tonnes containing 869
million pounds copper, 3.5 billion pounds zinc, 710 thousand ounces gold
and 41 million ounces silver
Cliff Davis, Nevsun CEO, commented, "Our 2016 regional exploration program built on 2015 successes adding over 1.1 billion copper equivalent pounds of inferred resources. Harena, in particular, continues to increase in size and has growing underground mining potential to extend the mine life at Bisha. Our exploration drilling was also successful in defining a new massive sulphide resource at Asheli, further highlighting the prospectivity of the Bisha District to host additional resources."
Mr. Davis went on to say, "Nevsun, alongside our Eritrean partner, ENAMCO, continues to invest in regional exploration at Bisha with the ongoing objective to significantly increase the mine life of our operation."
Tables 1.1 to 1.7 containing the complete mineral resource estimates for each deposit are appended at the end of this release. Copper equivalent is calculated by dividing contained zinc by 2.5 and adding to contained copper.
For the Timok project in Serbia, resources are the same as previously disclosed in the 2016 Preliminary Economic Assessment and will be updated when the Upper Zone project pre-feasibility study is published in September 2017.
Harena
In 2016, 6,080 metres of new drilling was completed at Harena continuing to extend the deposit to depth where it remains open. The inferred resource at Harena grew to over 25 million tonnes from 11 million tonnes the year earlier, for an additional 162 million pounds of copper, 1,668 million pounds of zinc, 280 thousand ounces of gold and 10.2 million ounces of silver. New metallurgical testing found the expected recovery for zinc to be 85%, an improvement on the previous recoveries of 72% after testing with a more representative set of material. Drilling continues at Harena in an effort to expand the deposit to depth.
Asheli
Asheli was discovered in June 2015 by Bisha as part of the Regional Exploration Program. In 2016, 12,918 metres of drilling was completed in 28 holes resulting in the definition of a new inferred resource of 2.4 million tonnes containing 98 million pounds of copper and 455 million pounds of zinc. Importantly, Asheli's average grade of 1.9% copper and 8.6% zinc is higher than either Harena or Bisha's primary sulphide grade. Drilling continues in the Asheli area following up on encouraging mineralization recently discovered 200 metres north of the main deposit.
Bisha
At Bisha, 11,770 metres of drilling in 21 holes was completed in 2016 testing the deposit below the proposed ultimate pit. This work has determined the down dip extent of the deposit. Considerable additional diamond drill core and reverse circulation drilling for production and metallurgical test work was also completed which has improved our understanding of the zonation, composition and recovery of the various ore types. Measured and Indicated resources including stockpiles at Bisha now stand at 23.4 million tonnes containing 529 million pounds of copper, 2,836 million pounds of zinc, 560 thousand ounces of gold and 34 million ounces of silver, a small decrease mostly due to mining depletion.
Qualified Persons Statement
All mineral resource estimates in this report have been prepared by the Qualified Persons described below in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum's Classification System (CIM Definition Standards for Mineral Resources and Mineral Reserves 2010).
The information in this press release that relates to mineral resources was prepared by Phil Jankowski, a Qualified Person as defined by NI 43-101. Mr. Jankowski has reviewed and approved the technical contents of this press release for his relevant sections.
Peter Manojlovic, P.Geo., and Frazer Bourchier, P.Eng., are Nevsun's designated Qualified Persons and have reviewed and approved the contents of this press release.
A Quality Assurance/Quality Control program was part of the sampling program for the Bisha work. Certified reference material (standards), duplicates and blank samples are systematically inserted into the flow of drill samples and results analyzed on a batch by batch basis. This program includes a chain of custody whereby diamond drill core samples are initially crushed and sub-sampled at the Bisha Mine sample preparation facility and pulverized and analyzed by Genalysis in Perth, Australia. Multi-element analysis is completed using ICP-AES methods; gold is analyzed by fire assay with AAS finish. Reverse circulation drill samples are processed at the Bisha Mine on-site laboratory, which is a member of the SGS group. Multi-element analysis is completed using ICP-OES methods with gold also analyzed by fire assay.
Cautionary Notes to Investors - Resource Estimates
In accordance with applicable Canadian securities regulatory requirements, all mineral resource estimates of the Company disclosed or incorporated by reference in this news release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects, classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines"). The definitions of mineral reserves and mineral resources are set out in our disclosure of our mineral reserve and mineral resource estimates in our Annual Information Form.
The Company uses the terms "mineral resources", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". While those terms are recognized by Canadian securities regulatory authorities, they are not recognized by the United States Securities and Exchange Commission (the "SEC") and the SEC does not permit U.S. companies to disclose resources in their filings with the SEC.
Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral reserve, or is or will ever be economically or legally mineable or recovered.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is the 100% owner of the high-grade copper-gold Timok Upper Zone in Serbia and 60% owner of the high-grade copper-zinc Bisha Mine in Eritrea. Nevsun is well positioned with a strong debt-free balance sheet to grow shareholder value through advancing the Timok project to production.
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; (x) 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 Annual Information Form for the fiscal year ended December 31, 2016, 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, 2016, 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
NSU 17-06.doc
Mineral Resources
The below reported Mineral Resources for Bisha and Harena are inclusive of Mineral Reserves which will be reported later.
Table 1.1: Consolidated Bisha, Harena, Northwest, Hambok and Asheli Mineral Resource as at 31 December 2016.
(Phil Jankowski, MAusIMM (CP), (BMSC))
Measured Contained Metal
-------- ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Oxide 10 40 8.4 10 1
----- --- --- --- --- ---
Supergene 30 2.97 30 0.6 2,000 30 1
--------- --- ---- --- --- ----- --- ---
Boundary 10 5.57 1.24 54 0.6 1,000 <1000 20 <1
-------- --- ---- ---- --- --- ----- ----- --- ---
Primary 1,250 1.02 6.62 42 0.8 28,000 183,000 1,690 31
------- ----- ---- ---- --- --- ------ ------- ----- ---
Total Measured 1,300 31,000 183,000 1,740 33
-------------- ----- ------ ------- ----- ---
Indicated Contained Metal
--------- ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Supergene 1,130 1.45 10 0.3 36,000 360 11
--------- ----- ---- --- --- ------ --- ---
Boundary 60 1.34 1.85 24 0.5 2,000 2,000 40 1
-------- --- ---- ---- --- --- ----- ----- --- ---
Primary 32,480 1.00 4.24 33 0.5 715,000 3,038,000 34,240 547
------- ------ ---- ---- --- --- ------- --------- ------ ---
Total Indicated 33,660 753,000 3,040,000 34,650 559
--------------- ------ ------- --------- ------ ---
Total 37,800 869,000 3,451,000 41,250 710
Measured and
Indicated
(including
stockpiles)
----------
Inferred Contained Metal
-------- ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Oxide 650 19 2.9 390 59
----- --- --- --- --- ---
Supergene 880 1.19 4 0.4 23,000 100 12
--------- --- ---- --- --- ------ --- ---
Primary 28,900 0.99 5.21 31 0.8 634,000 3,318,000 28,870 700
------- ------ ---- ---- --- --- ------- --------- ------ ---
Total Inferred 30,430 657,000 3,318,000 29,370 770
-------------- ------ ------- --------- ------ ---
Total Inferred 30,940 667,000 3,318,000 29,900 780
(including
stockpiles)
----------
Notes to be read in conjunction with the Resource
table above:
-------------------------------------------------
(1) Tonnage is rounded to the nearest
10,000 tonnes and grades are
rounded to two decimal places for
copper and zinc, one decimal place
for gold, and zero decimal places
for silver. Contained metal for
copper and zinc are rounded to the
nearest million pounds. Contained
metal for silver is rounded to the
nearest 10,000 ounces and gold is
rounded to the nearest 1,000
ounces.
(2) Rounding as required by reporting
guidelines may result in apparent
summation differences between
tonnes, grade and contained metal
content.
(3) Consolidated Resource Table includes
all surface stockpiles
(4) Tonnage and grade measurements are
in metrics units. Contained gold
and silver ounces are reported as
troy ounces, contained copper and
zinc as avoirdupois pounds.
(5) Mineral Resources that are not
Mineral Reserves do not have
demonstrated economic viability.
Table 1.2: Stockpile Mineral Resource as at 31 December 2016
(Phil Jankowski, MAusIMM (CP), (BMSC))
Measured (Stockpiles) Contained Metal
-------------------- ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Oxide 320 172 5.1 1,750 51
----- --- --- --- ----- ---
Supergene 40 2.33 38 0.7 2,000 40 1
--------- --- ---- --- --- ----- --- ---
Boundary 2,290 1.56 4.13 39 0.8 79,000 208,000 2,830 61
-------- ----- ---- ---- --- --- ------ ------- ----- ---
Primary 200 0.74 4.5 36 0.7 3,000 20,000 230 5
------- --- ---- --- --- --- ----- ------ --- ---
Total Measured 2,840 84,000 228,000 4,850 118
-------------- ----- ------ ------- ----- ---
Inferred (Stockpiles) Contained Metal
-------------------- ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Oxide-Au 210 70 1.2 480 8
-------- --- --- --- --- ---
Oxide-Cu 300 1.45 6 0.2 10,000 60 2
-------- --- ---- --- --- ------ --- ---
Total Inferred 510 10,000 540 10
-------------- --- ------ --- ---
Notes to be read in conjunction with the Resource
table above:
-------------------------------------------------
(1) Measured Oxide comprises Bisha LTS
(Long Term Stockpile) and Harena
MOP stockpiles.
(2) Measured Supergene comprises Bisha
LTS stockpiles.
(3) Measured Boundary comprises Bisha
ROM, River Bed and LTS Boundary Ore
that has been stockpiled during the
mining of the Primary ore;
processing of Boundary to date has
produced a Bulk Cu-Zn Concentrate
using a 10% blend of Boundary Ore
with primary ore from the Bisha
mine to the process plant.
(4) Measured Primary comprises Bisha ROM
and Crushed Ore stockpiles.
(5) Inferred Oxide comprises River Bed
Pyrite Sand, North Dump and Bisha
LTS Hangingwall Copper Ore; further
metallurgical studies are required
to finalize a metallurgical
treatment flowsheet for this
material.
(6) Stockpiles are estimated by
multiplying their surveyed volumes
with a loose density derived by
factoring their measured insitu
density by an appropriate swell
factor. Grades are taken from their
insitu grade as estimated by close
spaced grade control drilling.
Tonnage is rounded to the nearest
10,000 tonnes and grades are
rounded to two decimal places for
copper and zinc, one decimal place
for gold, and zero decimal places
for silver. Contained metal for
copper and zinc are rounded to the
nearest million pounds. Contained
metal for silver is rounded to the
nearest 10,000 ounces and gold is
rounded to the nearest 1,000
ounces.
(7) Rounding may result in apparent
summation differences between
tonnes, grade and contained metal
content.
(8) Tonnage and grade measurements are
in metrics units. Contained gold
and silver ounces are reported as
troy ounces, contained copper and
zinc pounds as imperial pounds.
Table 1.3: Bisha Mineral Resource as at 31 December 2016.
(Phil Jankowski, MAusIMM (CP), (BMSC))
Measured (Open Pit) Contained Metal
------------------ ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Oxide 10 40 8.4 10 1
----- --- --- --- --- ---
Supergene 30 2.97 30 0.6 2,000 30 1
--------- --- ---- --- --- ----- --- ---
Boundary 10 5.57 1.24 54 0.6 1,000 <1000 20 <1
-------- --- ---- ---- --- --- ----- ----- --- ---
Primary 1,250 1.02 6.62 42 0.8 28,000 183,000 1,690 31
------- ----- ---- ---- --- --- ------ ------- ----- ---
Total OP Measured 1,300 31,000 183,000 1,740 33
----------------- ----- ------ ------- ----- ---
Indicated (Open Pit) Contained Metal
------------------- ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Supergene 110 1.33 10 0.4 3,000 40 1
--------- --- ---- --- --- ----- --- ---
Boundary 60 1.34 1.85 24 0.5 2,000 2,000 40 1
-------- --- ---- ---- --- --- ----- ----- --- ---
Primary 19,140 0.97 5.74 45 0.7 409,000 2,422,000 27,410 412
------- ------ ---- ---- --- --- ------- --------- ------ ---
Total OP Indicated 19,310 414,000 2,424,000 27,490 414
------------------ ------ ------- --------- ------ ---
Total OP 20,600 446,000 2,608,000 29,230 448
Measured and
Indicated
--------- ---
Inferred (Open Pit) Contained Metal
------------------ ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Oxide 10 25 1.6 10 <1
----- --- --- --- --- ---
Supergene 780 1.23 1 0.1 21,000 30 2
--------- --- ---- --- --- ------ --- ---
Total OP Inferred 790 21,000 <1000 40 2
----------------- --- ------ ----- --- ---
Inferred (Underground) Contained Metal
--------------------- ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Primary 1,460 0.73 7.44 43 0.9 24,000 240,000 2,020 42
------- ----- ---- ---- --- --- ------ ------- ----- ---
Total UG Inferred 1,460 0.73 7.44 43 0.9 24,000 240,000 2,020 42
----------------- ----- ---- ---- --- --- ------ ------- ----- ---
Total Inferred 2,250 45,000 240,000 2,060 44
-------------- ----- ------ ------- ----- ---
Notes to be read in conjunction with the Resource
table above:
-------------------------------------------------
(1) Mineral Resources are defined within
an optimal Lerch-Grossman (LG) Pit
Shell, generated using metal prices
for copper, zinc, gold and silver
of $3.00lb, $1.20/lb, $1,265/oz
and $21/oz respectively using
blocks of all Resource categories.
The mining cost and total ore based
cost (process, G&A and stockpile
rehandle) applied was approximately
10-15% below the long term view on
costs. Overall pit slopes varied
from 38° to 44°. NSR cut-off ($US/
t) used were: $37.50 for Oxide
Phase, $37.00 for Supergene and
$35.00 for Primary Phase.
(2) Tonnage is rounded to the nearest
10,000 tonnes and grades are
rounded to two decimal places for
copper and zinc, one decimal place
for gold, and zero decimal places
for silver. Contained metal for
copper and zinc are rounded to the
nearest million pounds. Contained
metal for silver is rounded to the
nearest 10,000 ounces and gold is
rounded to the nearest 1,000
ounces.
(3) Rounding as required by reporting
guidelines may result in apparent
summation differences between
tonnes, grade and contained metal
content.
(4) Tonnage and grade measurements are
in metrics units. Contained gold
and silver ounces are reported as
troy ounces, contained copper and
zinc as avoirdupois pounds.
(5) The Underground resource was derived
by defining a shape around
contiguous blocks with an NSR >
$100/t outside the optimized
resource pit shell. The $100 NSR
cutoff represents the processing
cost plus approximately $60/t
mining cost.
(6) Mineral Resources that are not
Mineral Reserves do not have
demonstrated economic viability.
Table 1.4: Harena Mineral Resource as at 31 December 2016.
(Phil Jankowski, MAusIMM (CP), (BMSC))
Indicated (Open Pit) Contained Metal
------------------- ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Primary 3,950 0.87 3.16 28 0.6 76,000 274,000 3,520 74
------- ----- ---- ---- --- --- ------ ------- ----- ---
Total OP Indicated 3,950 76,000 274,000 3,520 74
------------------ ----- ------ ------- ----- ---
Inferred (Open Pit) Contained Metal
------------------ ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Oxide 120 20 2.0 70 8
----- --- --- --- --- ---
Primary 1,920 0.87 2.49 40 1.0 37,000 105,000 2,450 63
------- ----- ---- ---- --- --- ------ ------- ----- ---
Total OP Inferred 2,040 37,000 105,000 2,530 71
----------------- ----- ------ ------- ----- ---
Inferred (Underground) Contained Metal
--------------------- ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Total UG Inferred 23,020 0.93 4.96 30 0.8 473,000 2,515,000 22,050 558
----------------- ------ ---- ---- --- --- ------- --------- ------ ---
Total Inferred 25,060 510,000 2,620,000 24,580 628
-------------- ------ ------- --------- ------ ---
Notes to be read in conjunction with the Resource
table above:
-------------------------------------------------
(1) Mineral Resources are defined within
an optimal Lerchs-Grossman (LG)
pit shell, generated using metal
prices for copper, zinc, gold and
silver of $3.00/lb, $1.20/lb,
$1,265/oz and $21/oz respectively
using blocks of all Resource
categories. The mining cost and
total ore based cost (process, G&A
and stockpile rehandle) applied was
approximately 10% below the long
term view on costs with appropriate
ore haulage costs for each
satellite deposit. Overall pit
slopes varied from 29 deg to 35.5
deg. NSR cut-offs ($US/t) used
were $40.00 for Oxide and $41.00
for Primary.
(2) Net Smelter Return values were
calculated for each block using all
resource categories, metal prices,
recoveries, appropriate smelter
terms and downstream costs.
Metallurgical recoveries, supported
by metallurgical test work, were
applied as follows: Oxide zone: a
recovery of 75% and 22% were
applied for gold and silver
respectively; and Primary zone;
recoveries to copper concentrate of
85%, 36% and 29% were applied for
copper, gold and silver
respectively. A zinc recovery to
zinc concentrate of 85% was
applied.
(3) Mineral Resources are reported
within the pit shell generated
using the specified commodity
prices, using NSR block grade cut-
off derived as above. Tonnage is
rounded to the nearest 10,000
tonnes and grades are rounded to
two decimal places for copper and
zinc, one decimal place for gold,
and zero decimal places for silver.
Contained metal for copper and zinc
are rounded to the nearest million
pounds. Contained metal for silver
is rounded to the nearest 10,000
ounces and gold is rounded to the
nearest 1,000 ounces.
(4) Rounding may result in apparent
summation differences between
tonnes, grade and contained metal
content.
(5) Tonnage and grade measurements are
in metrics units. Contained gold
and silver ounces are reported as
troy ounces, contained copper and
zinc pounds as imperial pounds.
(6) Underground Inferred Resources were
derived by selecting contiguous
blocks outside the optimized
resource pit shell, with an NSR
cutoff of $100, which represents
the processing cost plus
approximately $60/t mining cost.
(7) Mineral Resources that are not
Mineral Reserves do not have
demonstrated economic viability.
Table 1.5: Northwest Mineral Resource as at 31 December 2016.
(Phil Jankowski, MAusIMM (CP), (BMSC))
Indicated (Open Pit) Contained Metal
------------------- ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- ---------- --------- -------- --------
Oxide
-----
Supergene 1,020 1.47 10 0.2 33,150 330 10
--------- ----- ---- --- --- ------ --- ---
Primary 2,530 1.04 1.08 13 0.3 58,020 60,250 1,050 20
------- ----- ---- ---- --- --- ------ ------ ----- ---
Total Indicated 3,550 91,170 60,250 1,380 30
--------------- ----- ------ ------ ----- ---
Inferred (Open Pit) Contained Metal
------------------ ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- ---------- --------- -------- --------
Oxide 500 18 3.7 300 50
----- --- --- --- --- ---
Supergene 100 0.8 19 3.7 2,000 70 10
--------- --- --- --- --- ----- --- ---
Primary 100 0.9 0.9 15 2.9 2,400 2,400 60 10
------- --- --- --- --- --- ----- ----- --- ---
Total Inferred 700 4,400 2,400 430 70
-------------- --- ----- ----- --- ---
Notes to be read in conjunction with the Resource tables for
Northwest above:
------------------------------------------------------------
(1) No change has
occurred Northwest
since 2014 which
used metal prices
for copper, zinc,
gold and silver of
$3.35/lb, $1.05/
lb, $1,350/oz and
$23/oz,
respectively.
Mineral Resources
are defined within
an optimal Lerchs-
Grossman (LG) Pit
Shell. The mining
cost and total ore
based cost
(process, G&A and
stockpile rehandle)
applied was
approximately 10%
below the long term
view on costs with
appropriate ore
haulage costs for
each satellite
deposit. Overall
pit slopes varied
from 39 to 45 for
Northwest . NSR
cut-off ($US/t)
used were: $40.70
for Oxide Phase,
$39.70 for
Supergene and
Primary Phase.
(2) Net Smelter Return
values were
calculated for each
block using all
resource
categories, metal
prices, recoveries,
appropriate smelter
terms and
downstream costs.
Metallurgical
recoveries,
supported by
metallurgical test
work, were applied
as follows:
a. Oxide Phase; recoveries of 88%
and 22% were applied to gold
and silver respectively.
b. Supergene Phase; recoveries of
87%, 46% and 50% were applied
for copper, gold and silver
respectively. Zinc has not been
assigned a recovery as the
values are isolated on the
fringes of the deposit.
c. Primary Phase; recoveries to
copper concentrate of 87%, 36%
and 29% were applied for
copper, gold and silver
respectively. Recoveries to
zinc concentrate of 81%, 36%
and 29% were applied for zinc,
gold and silver respectively.
(3) Mineral Resources
are reported within
the pit shell
generated using the
specified commodity
prices, using NSR
block grade cut-
off derived as
above. Tonnage is
rounded to the
nearest 10,000
tonnes and grades
are rounded to two
decimal places for
copper and zinc,
one decimal place
for gold and zero
decimal places for
silver. Tonnages
and grades for the
Inferred category
are further rounded
reflecting the
uncertainty that
attaches to this
category. Contained
metal for copper
and zinc are
rounded to the
nearest ten
thousand pounds.
(4) Rounding as required
by reporting
guidelines may
result in apparent
summation
differences between
tonnes, grade and
contained metal
content.
(5) Tonnage and grade
measurements are in
metrics units.
Contained gold and
silver ounces are
reported as troy
ounces, contained
copper and zinc
pounds as imperial
pounds.
Table 1.6: Hambok Mineral Resource as at 31 December 2016.
(Phil Jankowski, MAusIMM (CP), (BMSC))
Indicated (Open Pit) Contained Metal
------------------- ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Oxide
-----
Primary 6,860 1.14 1.86 10 0.2 172,370 281,240 2,260 40
------- ----- ---- ---- --- --- ------- ------- ----- ---
Total Indicated 6,860 172,370 281,240 2,260 40
--------------- ----- ------- ------- ----- ---
Inferred (Open Pit) Contained Metal
------------------ ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Oxide 20 17 1.5 10 1
----- --- --- --- --- ---
Primary 2 0.9 0.2 8 0.2 30 10 0 0
------- --- --- --- --- --- --- --- --- ---
Total Inferred 22 30 10 10 1
-------------- --- --- --- --- ---
Notes to be read in conjunction with the Resource tables for
Hambok above:
------------------------------------------------------------
(1) No change has occurred to
Hambok since 2014 which
used metal prices for
copper, zinc, gold and
silver of $3.35/lb,
$1.05/lb, $1,350/oz
and $23/oz,
respectively. Mineral
Resources are defined
within an optimal
Lerchs-Grossman (LG)
Pit Shell. The mining
cost and total ore based
cost (process, G&A and
stockpile rehandle)
applied was
approximately 10% below
the long term view on
costs with appropriate
ore haulage costs for
each satellite deposit.
Overall pit slopes was
40 overall for Hambok
(preliminary
assessment). NSR cut-
off ($US/t) used were:
$44.45 for Oxide Phase
and $43.45 for Primary
Phase.
(2) Net Smelter Return values
were calculated for each
block using all resource
categories, metal
prices, recoveries,
appropriate smelter
terms and downstream
costs. Metallurgical
recoveries, supported by
metallurgical test work,
were applied as follows:
a. Oxide Phase; recoveries of 88% and 22%
were applied to gold and silver
respectively.
b. Primary Phase; recoveries to copper
concentrate of 88%, 87%, 36% and 29%
were applied for copper, zinc, gold
and silver respectively. Preliminary
metallurgical characterization
studies, but not full testing, have
been completed for Hambok.
(3) Mineral Resources are
reported within the pit
shell generated using
the specified commodity
prices, using NSR block
grade cut-off derived
as above. Tonnage is
rounded to the nearest
10,000 tonnes and grades
are rounded to two
decimal places for
copper and zinc, one
decimal place for gold
and zero decimal places
for silver. Contained
metal for copper and
zinc are rounded to the
nearest ten thousand
pounds.
(4) Rounding as required by
reporting guidelines may
result in apparent
summation differences
between tonnes, grade
and contained metal
content.
(5) Tonnage and grade
measurements are in
metrics units. Contained
gold and silver ounces
are reported as troy
ounces, contained copper
and zinc pounds as
imperial pounds.
Table 1.7: Asheli Mineral Resource as at 31 December 2016.
(Phil Jankowski, MAusIMM (CP), (BMSC))
Inferred (Underground) Contained Metal
--------------------- ---------------
Tonnes Copper Zinc Silver Gold Cu Zn Ag Au
------ ------ ---- ------ ---- --- --- --- ---
Domain (`000s) (%) (%) (g/t) (g/t) ('000 lbs) ('000 lbs) ('000 Oz) ('000 Oz)
------ ------ --- --- ----- ----- --------- --------- -------- --------
Primary 2,400 1.86 8.59 30 0.4 98,400 455,000 2,320 31
------- ----- ---- ---- --- --- ------ ------- ----- ---
Total Inferred 2,400 1.86 8.59 30 0.4 98,400 455,000 2,320 31
-------------- ----- ---- ---- --- --- ------ ------- ----- ---
Notes to be read in conjunction with the Resource
table above:
-------------------------------------------------
(1) Mineral Resources are defined within
an interpreted massive sulphide
body. No cutoffs have been applied
due to the dimensions and
continuity of the mineralisation,
and the low confidence in the local
grade estimate as reflected in the
resource classification.
(2) Tonnage is rounded to the nearest
10,000 tonnes and grades are
rounded to two decimal places for
copper and zinc, one decimal place
for gold, and zero decimal places
for silver. Contained metal for
copper and zinc are rounded to the
nearest million pounds. Contained
metal for silver is rounded to the
nearest 10,000 ounces and gold is
rounded to the nearest 1,000
ounces.
(3) Rounding as required by reporting
guidelines may result in apparent
summation differences between
tonnes, grade and contained metal
content.
(4) Tonnage and grade measurements are
in metrics units. Contained gold
and silver ounces are reported as
troy ounces, contained copper and
zinc as avoirdupois pounds.
(5) An open pit optimisation failed to
produce any optimal pit. The
resource is being considered as
having potential for underground
mining.
(6) Mineral Resources that are not
Mineral Reserves do not have
demonstrated economic viability.
SOURCE Nevsun Resources Ltd.
