Nevsun Resources Ltd (NSU)

[geodan]

3 articles NSU,Silver,Gold

First up Silver looks very positive nearterm here https://seekingalpha.com/article/4083696-bubba-gump-silver-factory

2nd Gold moderately up https://seekingalpha.com/article/4083690-can-gold-fly-week-ahead

3rd and most important Article and comment after interview with upper management by investor in NSU 6-20-2017:


OK here is what found out on Copper circuit issue:

Talked with someone in upper management, appreciate him taking the time to talk with me.

1. They have not stockpiled copper concentrates that were not saleable as copper cons. They said that if they stored them or ran them through the copper circuit again oxidation would make them even worse, they sold them all as bulk cons and got only about 20% of copper value instead of normal 96%.

2. That issue is gone, since Feb they do have the copper circuit producing saleable copper cons. So financial results should improve a lot(me).
Total Reserves (Proven & Probable) Tonnes
(1000's) Copper % Zinc % Gold g/t Silver g/t
Primary 21,032 1.10 5.57 0.68 43.9
So based just on copper and zinc and the fact copper is about 2.2 times higher than zinc the copper should be 30% of revenue. And being they have been losing 76% of that revenue by my calcs they have been losing 22.8% of overall zinc/copper rev. The zinc circuit has always worked since they got into the primary ore. I am excluding gold and silver here FYI.
So JMHO we should expect about a 22.8% increase in overall revenue without an increase in expenses due to getting 96% of copper price instead of 20%. This is a BIG Deal, market has not priced this in yet.

3. The "transition" ore may persist to bottom we should not expect the ore to improve all that much. But being they are getting the zinc and copper out at full prices now, should be quite profitable. However it is not going to be as profitable as upper zone, the primary ore is not as rich.

4. There was a bunch of gold in upper supergene zone at Bisha, very rich in fact good enough to mine without the rich copper portion. The fellow concurred with me that it is hard to explain how that much gold got there from just the existing ore body. We both guessed it is likley a separate gold event put it there. Studies of this have come up with differing explanations, but raises possibility there will be gold alone and gold on top of copper/zinc deposits in Bisha area they have not found yet but are on lookout for.

5.VTEM http://bit.ly/2tKkhwZ The Company is planning to drill over 130,000 metres during 2017 across three countries. Approximately 90,000 metres will
be drilled in Serbia at the Timok Upper Zone, the Timok Lower Zone and Tilva, the latter two which are joint ventures with Freeport-McMoRan and Rio Tinto respectively.
Another 40,000 metres of exploration drilling is planned in Eritrea. Another critical activity to be completed in Eritrea during Q1 2017 is the completion of an airborne geophysical (VTEM) survey to identify shallow greenfield targets on the expanded Bisha exploration licenses.
And: http://bit.ly/2sMz6lr talks about this.

He said on VTEM Harena was a small target, yet ended up being a big deposit, approaching Bisha and "Hole HX-083, which is the deepest hole yet drilled at Harena, is relatively higher in copper than recent holes drilled above it and has an 11.0 metre interval grading 2.23% Cu, 4.92% Zn, 1.10 g/t Au, 79 g/t Ag including 2.6 metres grading 4.88% Cu, 7.79% Zn, 2.49 g/t Au, 201 g/t Ag. This suggests that the mineralizing system is strengthening and Borehole transient electromagnetic (BHEM) modeling indicates that the mineralization should continue down dip. Further drilling will determine if this is the case."

So bottom line is the chances are good there is another Bisha sized very rich supergene ore body on the property and maybe several as they have reported recently "A 6,386 line kilometre VTEM survey has been recently completed by helicopter over the Mogoraib River and Tabakin Exploration Licenses covering an area of 825 square kilometres. These licenses were acquired in mid-2016 and much of the area had never been covered by any geophysical survey. Preliminary results have highlighted many new anomalies that, by the nature of the survey, should be relatively shallow (i.e., less than 100 metre depth). Field evaluation is underway to determine the nature of the anomalies and over 11,000 metres of drilling has been allocated for the testing of targets."
My opinion is these shallow targets can be Bisha like rich supergene ore.

So Just my opinion Bisha district is worth about NSU's price or more ignoring Timok. The only real problem/mistake NSU has had (the copper circuit not working for 6 months or so), that has really hurt the stock. And that problem has been solved.

6. Timok is super rich as we all know. The BOR mine within miles can smelt the ore with virtually no transportation cost, big advantage. The BOR has 5,000 workers!! and gov basically subsidizes it now because they want mining jobs so bad, but its very marginal now after 90? years so if private would be shut down. The bottom line is Serbia is super pro mining, good for NSU. NSU is a solution to BOR being near end of life mining jobs wise for Serbia.

7. Timok is underexplored, they hope to find another upper zone nearby. As others here have pointed out just Timok alone is worth more than NSU price, I concur.

https://seekingalpha.com/article/4074662-nevsun-confusion-creates-value-opportunity

Feel free to use this info if someone wants to write an article.