NGEx Sells Hambok Project in Eritrea to Bisha Mining Share Company

Money from sell of its Mogoraib Exploration license will enable NGEx Resources to develop its remaining deposit in Kerkebet

By Nevsun,

Nevsun Resources Ltd. (TSX: NSU / NYSE MKT: NSU) (“Nevsun”) is pleased to announce that the Bisha Mining Share Company (“Bisha”), a 60% owned subsidiary of Nevsun, has entered into an agreement (the “Agreement”) to acquire the Mogoraib exploration license (the “Property”) in Eritrea. 

Pursuant to the Agreement, Bisha will pay Sanu Resources, a subsidiary of NGEx Resources Inc. of Vancouver, US$5 million on closing and potentially an additional US$7.5 million contingent upon achieving commercial production from the Property.

The Agreement is subject to approval of authorities in Eritrea.

Nevsun CEO Cliff Davis commented:

“The acquisition of the Mogoraib license is the start of Bisha’s regional generative exploration program.  Bisha is looking to establish a larger regional land package on which to explore for additional reserves for the Bisha plant. We believe the area has good potential for the discovery of additional VMS deposits and have started the process of applying for additional exploration licenses.”

The Mogoraib license is 97.4 square kilometers in area and includes the Hambok copper-zinc deposit.  The Hambok deposit is located 16 km southwest of Nevsun’s Bisha Mine. Hambok represents potential feed for Bisha that could impact the size and timing of the primary phase investment in a zinc flotation plant.  A historical resource estimate for Hambok was filed in a NI 43-101 technical report on March 27, 2009 by Sanu Resources Ltd.

A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves.

  • Agreement to purchase the Mogoraib exploration license in Eritrea
  • 97.4 square kilometers, including the copper-zinc Hambok deposit
  • Open pit potential 16 km southwest of Bisha processing plant
  • Historic indicated and inferred base metal resource estimate at Hambok

While Bisha does not believe that Hambok is economic as a stand-alone deposit it plans to undertake further exploration on the deposit.  With the Bisha plant a short distance away, Hambok could become additional feed for Bisha base metal operations. If additional exploration is successful and base metal reserves are identified, then Bisha may consider increasing capacity when the Bisha plant transitions from copper to zinc in 2015 or 2016.

The Hambok massive sulphide body is a steeply east dipping, lenticular body consisting of a series of lenses. The massive sulphide body extends for over 1000m along strike, approximately 350m down dip and is up to 75m thick in the center of the lens.

Local stringer sulphide vein mineralization lies within the footwall to the massive sulphide mineralization. The main sulphide minerals are pyrite, chalcopyrite, and sphalerite. There is also minor galena, tennantite, and digenite. The distribution of assayed base metal values within the sulphide body shows that the best grades occur at the top, bottom, and edges of the thickest accumulation of sulphides.

The data base for the resource calculation set out in the following table consisted of 57 drill holes, 326 down hole surveys and assays for gold, silver, copper and zinc. A geologic model from cross sections outlined the massive sulphide unit and was the basis for a three dimensional mineralized solid that constrained the estimate.


Editor’s Note: 

NGEx/Sanu Resources Inc: Based on previous exploration works, Sanu continues its exploration activities in the Kerkebet and Mogoraib exploration licences targeting VMS deposits.

Generally, most of the work Sanu has accomplished are database entry, geological mapping and map compilation, and some follow-up and prospecting works in the Kerkebet and Mogoraib licences. The most notable achievement is the discovery of the Hambok deposit in the Mogoraib licence area immediately south-west of Bisha, along with promising drill intersections in Aradaib at the Kerkebet licence area and north of Bisha.


 

Nevsun Acquires Exploration License in Eritrea

By Stockhouse Editorial,

Nevsun Resources Ltd. (TSX:T.NSU, Stock Forum) said that the Bisha Mining Share Company, a subsidiary of Nevsun, has entered into an agreement to acquire the Mogoraib exploration license in Eritrea.

The Mogoraib license is 97.4 square kilometers in area and includes the Hambok copper-zinc deposit. The Hambok deposit is located 16 km southwest of Nevsun’s Bisha mine, which is 150 kilometres west of Asmara in Eritrea, East Africa. The 60%-owned mine commenced gold production in Feb. 2011 and is scheduled to transition to copper/gold production in 2013.

According to the press release, Hambok represents potential feed for Bisha that could impact the size and timing of the primary phase investment in a zinc flotation plant.

The Hambok massive sulphide body is a steeply east dipping, lenticular body consisting of a series of lenses. The massive sulphide body extends for over 1000m along strike, approximately 350m down dip and is up to 75m thick in the center of the lens.

Historical indicated resource estimates for Hambok have an average of 1.12% copper, 3.24% zinc, 0.21 grams per tonne gold and 7.81 grams per tonne silver.

Pursuant to the agreement, Bisha will pay Sanu Resources US$5 million on closing and potentially an additional US$7.5 million contingent upon achieving commercial production from the property.

The agreement is subject to approval of authorities in Eritrea.

Nevsun Resources Ltd. is a Vancouver-based mining company with an operating mine in Eritrea.

On Wednesday morning, Nevsun’s stock was down 5% and was trading at $3.32 a share. The company has a market cap of $663.4 million, based on 199.8 million shares outstanding. The 52-week high and low was $7.22 and $2.71 respectively.

The Hambok copper-zinc deposit represents potential feed for Bisha that could impact the size and timing of the primary phase investment in a zinc flotation plant