Nevsun Announces Q3 Gold Production of 98,000 Ounces

Nevsun expects to exceed  it’s planned production guidance for the year

By Nevsun Resources,

Nevsun Resources Ltd. (TSX:NSU / NYSE MKT:NSU) is pleased to announce strong production results of 98,000 ounces of gold for the quarter ended September 30, 2012. Gold production in the quarter was again above expectations due to higher than anticipated grades in the transitional oxide zone.

However, Nevsun does not expect this level of production to continue as the transitional oxide zone is nearly exhausted and the mill will start processing lower grade Harena ore in Q4.  

Bisha is expected to meet or exceed the top end of full year 2012 production guidance of 280,000 to 300,000 ounces of gold.

Q3 2012 HIGHLIGHTS

  • Produced 98,000 ounces of gold in Q3 2012 (267,000 ounces year-to-date)
  • Mined 316,000 tonnes at 5.21 g/t gold
  • Harena pre-stripping complete; ore production to start in October 2012
  • Copper plant expansion remains on plan for mid-2013 commissioning
  • Nevsun continues to review acquisition opportunities

A summary of the Company’s third quarter operating results are as follows:

Q3 2012
3 months ending
September 30
Q2 2012
3 months ending
June 30
Q1 2012
3 months ending
March 31
Year-to-Date 2012
Nine months ending
September 30
Mining
  Ore mined, tonnes316,000500,000349,0001,165,000
  Mined grade, g/t5.216.044.715.42
  Waste mined, tonnes2,590,0001,659,0001,826,0006,075,000
  Strip ratio, (calc in BCM’s)10.34.06.26.3
  Copper phase prestrip, tonnes481,000739,0001,220,000
Milling
  Ore milled, tonnes465,000465,000430,0001,360,000
  Feed grade, g/t7.406.936.586.98
Processing
  Recovery % of gold87%85%86%86%
  Gold in doré, ounces poured98,00087,00082,000267,000

The mine performed well in the quarter, with above plan milled grade and recovery.  Waste mining to pre-strip Harena ore and copper supergene progressed to plan.  Ore mining decreased relative to the previous quarter during the June to September rainy season.

Nevsun expects to announce its full Q3 financial results on November 8, 2012, with a conference call the same day.

HARENA
Pre-stripping of Harena was completed in Q3 and Harena ore mining and processing will soon commence.

OTHER UPDATES
The copper plant expansion continues to progress on schedule with concentrate production expected in mid-2013.

In addition to the ongoing Bisha operations and capital expansion, Nevsun continues its due diligence of expansion opportunities of both gold and copper projects in Africa, the Americas and Europe.