Nevsun Resources Ltd.: Independent Resource Estimate
Confirms Large Tonnage, High-Grade VMS Deposit at
Bisha Project, Eritrea
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2004) - Nevsun
Resources Ltd. (NSU/TSX) is pleased to announce an independent resource
estimate from the Bisha volcanogenic massive sulphide deposit in
Eritrea. This estimate is based on 310 diamond and 42 reverse
circulation drill holes covering a strike length of 1,200 metres and to
depths varying from surface to 375 metres.
This resource estimate was completed by AMEC, a major international
engineering services company, and complies with National Instrument
43-101 requirements.
The Bisha Main VMS Deposit has three distinct zones, the oxide gold
zone, supergene copper zone and the primary sulphide zones. (See diagram
in this release.) The Indicated resource estimate for the surface oxide
gold zone is 4.984 million tonnes averaging 6.51 g/t Au (using a 0.5 g/t
Au cut-off grade) for a total of 1.04 million ounces of gold. The
Indicated resource for the supergene copper zone totals 7.645 million
tonnes averaging 3.47% Cu (using a 0.5% Cu cut-off grade) for a total of
585 million pounds of copper. The primary sulphide zone is comprised of
a primary zone (described later and in the tables) and a zinc-rich zone
containing an Indicated resource of 8.413 million tonnes grading 9.04%
Zn totaling 1.68 billion pounds of zinc and 1.12% Cu totaling 207.7
million pounds of copper (using a 2.0% Zn cut-off grade).
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Tonnes Au Ag Cu Zn
Cut-off (000's) g/t g/t % %
--------------------------------------------------------------------
Indicated
--------------------------------------------------------------------
Oxides 0.5g/t Au 4,984.1 6.51 30.00 0.10 0.08
--------------------------------------------------------------------
Supergene Cu 0.5% Cu 7,644.8 0.46 35.56 3.47 0.87
--------------------------------------------------------------------
Primary 2.0% Zn 1,711.5 0.74 29.59 0.97 3.07
--------------------------------------------------------------------
Primary Zn 2.0% Zn 8,413.3 0.76 58.27 1.12 9.04
--------------------------------------------------------------------
Total tonnes 22,753.7
--------------------------------------------------------------------
--------------------------------------------------------------------
Inferred
--------------------------------------------------------------------
Oxides 0.5g/t Au 122.0 3.34 18.20 0.12 0.07
--------------------------------------------------------------------
Supergene Cu 0.5% Cu 185.6 0.09 30.14 3.26 1.04
--------------------------------------------------------------------
Primary 2.0% Zn 392.0 0.75 35.20 1.24 3.03
--------------------------------------------------------------------
Primary Zn 2.0% Zn 5,150.9 0.70 59.67 0.84 8.28
--------------------------------------------------------------------
Total tonnes 5,850.0
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...............
In addition there is an inferred resource totaling a further 5.85
million tonnes of oxide, supergene and primary resource as outlined in
the table above.
Details of the Indicated and Inferred resources at various cut-off
grades for the individual zones are listed below.
Oxide Zone using gold cut-off grades of 0.5 g/t and 1.0 g/t
- see below for a detailed description of individual rock types
--------------------------------------------------------------------
Contained
Au
Cut-off Tonnes Au Ag Cu Zn Millions
Indicated Au g/t (000's) g/t g/t % % Oz
--------------------------------------------------------------------
Fe Oxide 0.5 3,653.4 6.65 20.32 0.10 0.08 0.781
--------------------------------------------------------------------
Acidified 0.5 709.6 8.35 108.05 0.09 0.03 0.190
--------------------------------------------------------------------
Breccia 0.5 621.1 3.62 9.39 0.09 0.07 0.072
--------------------------------------------------------------------
Total 4,984.1 1.043
--------------------------------------------------------------------
Fe Oxide 1.0 3,469.5 6.97 20.79 0.10 0.08 0.778
--------------------------------------------------------------------
Acidified 1.0 683.7 8.63 109.88 0.10 0.03 0.189
--------------------------------------------------------------------
Breccia 1.0 519.1 4.19 10.65 0.09 0.07 0.069
--------------------------------------------------------------------
Total 4,672.3 1.036
--------------------------------------------------------------------
Supergene Copper Zone using a range of cut-off grades
--------------------------------------------------------------------
Contained
Cu
Cut-off Tonnes Cu Au Ag Zn millions
% Cu (000's) % g/t g/t % lbs
--------------------------------------------------------------------
Indicated 0.25 8,105.2 3.30 0.44 34.52 0.86 589
--------------------------------------------------------------------
Indicated 0.5 7,644.8 3.47 0.46 35.56 0.87 585
--------------------------------------------------------------------
Indicated 1.0 6,453.1 3.97 0.50 38.69 0.91 564
--------------------------------------------------------------------
............
Primary Sulphide Zone
The primary sulphides were broken down into two components, a primary
zone and a primary Zn enriched zone.
--------------------------------------------------------------------
Contained Contained
Cut- Zn Cu
off Tonnes Zn Millions Cu Millions Au Ag
Zone Zn % (000's) % lb % lb g/t g/t
--------------------------------------------------------------------
Indicated
--------------------------------------------------------------------
Primary 2.0 1,711.5 3.07 115 0.97 37 0.74 29.59
Primary
Zn 2.0 8,413.3 9.04 1,680 1.12 207.7 0.76 58.27
--------------------------------------------------------------------
Inferred
--------------------------------------------------------------------
Primary 2.0 392.0 3.03 1.24 0.75 35.20
--------------------------------------------------------------------
Primary
Zn 2.0 5,150.9 8.28 0.84 0.70 59.67
--------------------------------------------------------------------
'''''''''''''''''
Estimation Methodology
This resource model was created using industry standard methodologies
conforming to the requirements set out in National Instrument 43-101.
The blocks grades were estimated within domains based on interpretation
of geological parameters logged in drill holes. A sectional spacing of
25 metres was used for the basic interpretations. The sectional
interpretations were subsequently rationalized in plan. Solid
(wireframe) models were created from these and became the basis for
coding the block model. Grades were estimated using Ordinary Kriging
utilizing two passes and search neighborhoods conforming to the
geological trend. Capping of extreme grades was used to remove metal at
risk as derived from analyses of the assay distributions.
Calibrated in the Indicated blocks of the model, approximately 7.5% of
the Au, 2.5% of the Zn, 13.5% of the Ag and 3.6% of the Cu was removed
by the capping process. Bulk density was estimated by averaging the
measurements from within the modeled mineralization zones. AMEC used the
following bulk density values for the resource estimation.
-----------------------------------
Rock type Bulk Density (g/cm3)
-----------------------------------
Breccia 2.21
-----------------------------------
Fe oxide 3.32
-----------------------------------
Acidified 2.08
-----------------------------------
Supergene Cu 4.15
-----------------------------------
Primary Cu 4.39
-----------------------------------
Primary Zn 4.43
-----------------------------------
;;;;;;;;;;;;;;;
Variography and confidence limits analyses for grade estimation were
used in conjunction with confidence in geological modeling and database
integrity to develop resource classification criteria. Indicated
resources were defined by a nominal 25 metre spaced drill sampling grid.
Inferred resources were defined to be the remainder of the material
within 50 metres of drilling. Both the Indicated and Inferred material
were restricted to the geologically interpreted mineralization domains.
The Bisha QA/QC program used to monitor the accuracy of the assay
database was reviewed and verified by AMEC's Qualified Person, Douglas
Reddy, P.Geo. Mr. Reddy made a site visit to the Bisha Property in May
2004. Geological modeling was completed by Nevsun and AMEC. Resource
modeling was carried out using Vulcan 3D Software by Maptek Pty Limited
by Ken Brisebois, P.Eng. also of AMEC and the QP for the resource model.
The geological model was formulated by Nevsun under the supervision of
Bill Nielsen, P.Geo. Nevsun's V.P. of Exploration.
Additional resource potential and future work
Not included in the above resource tabulations are areas of additional
resource potential. A stringer sulphide zone located in the footwall of
the primary sulphide zone contains significant base and precious metal
values. Another wide-spread zone of mineralization consisting of
disseminated copper sulphides in oxidized rocks has also been identified
predominantly to the west of the Bisha Main Deposit. Holes such as B-111
that encountered 39 metres grading 1.08% Cu and B-87 that intersected
31.5 metres assaying 1.44% Cu are examples of this disseminated style of
mineralization.
Nevsun has been under a stop work order from the Government of Eritrea
since early September of this year. The Company looks forward to
returning to work in order to advance the property to a final
feasibility study once permission is given to restart the program.
Initial metallurgical work has been completed, a baseline environmental
study has been completed, hydrological studies have commenced and
geotechnical work has commenced.
When work proceeds, a minor amount of drilling will be completed to
infill near surface resources at the Bisha Main Deposit. This will
involve approximately 1,500 metres of drilling. Some closer spaced
drilling on sections 12.5 metres apart, involving about 4,000 meters of
drilling, will also be completed in upcoming programs to supply a level
of confidence to advance a significant portion of the resources into the
Measured category.
Deeper drilling on the Bisha Main Zone will be completed to determine
the overall extent of this major VMS deposit.
Nevsun also intends to drill off the NW Zone to a level that will allow
the Company to determine the full potential of this deposit. Drilling of
prime exploration targets such as Harena, located 9 km to the southwest
of the Bisha Main Deposit, is also planned.
Drilling large diameter core (PQ) for metallurgical samples and
geotechnical assessment of proposed pit walls are prime objectives of
the next phase of drilling. Both are required to advance the project
towards a feasibility study.
The Bisha Main Deposit remains open to the north and south as well as to
depth. Additional drilling is required to define mineralization in these
areas. At the south end of the deposit the massive sulphides plunge off
steeply but significant widths of mineralization containing appreciable
zinc values are present at depth.
To view the attached images please click on the following links:
http://www2.cdn-news.com/database/fax/2000/1018nsu.jpg
http://www2.cdn-news.com/database/fax/2000/1018nsu1.jpg
Nevsun Resources Ltd. is also developing its gold project in Mali. The
Tabakoto Project in Mali is currently under construction with gold
production scheduled for commencement in mid-2005. Nevsun is well funded
to complete mine construction and further exploration of its projects.
Definitions:
Fe oxide - vuggy, hematite enriched unit. Formerly a massive sulphide
with sulphides altered to oxides
Acidified - highly acidified rock composed largely of silica and clay
minerals, very porous
Breccia - mixture of angular fragments of iron oxide, quartz and country
rock cemented in a finer grained matrix
Forward Looking Statements: The above contains forward looking
statements that are subject to a number of known and unknown risks,
uncertainties and other factors that may cause actual results to differ
materially from those anticipated in our forward looking statements.
Factors that could cause such differences include: changes in world
metal markets, equity markets, costs and supply of materials relevant to
the mining industry, change in government and changes to regulations
affecting the mining industry. Although we believe the expectations
reflected in our forward looking statements are reasonable, results may
vary, and we cannot guarantee future results, levels of activity,
performance or achievements.
NEVSUN RESOURCES LTD.
Dr. John A. Clarke, President & Chief Executive Officer
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Nevsun Resources Ltd.
Don Halliday
Manager, Investor Relations
(604) 623-4700 or Toll Free: 1-888-600-2200
Email: dhalliday@nevsun.com
Website: www.nevsun.com
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