Nevsun Resources Ltd (NSU)

[geodan]

Nevsun Delivers Substantial Resource Growth at Bisha from 2016 Drilling
PR Newswire

VANCOUVER, March 23, 2017

VANCOUVER, March 23, 2017 /PRNewswire/ - Nevsun Resources Ltd.
(http://www.nevsun.com/investors/) (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. (http://www.nevsun.com/investors/) 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.