Nevsun Resources (TSX:NSU,NYSEMKT:NSU)
Market cap: $950 million
Cash estimate: $520 million
Ownership: 60 percent
Historical resources: 3.2 MT @ 0.8% Cu, 3.8% Zn, 0.5 g/t Au, 27 g/t Ag (primary)
Project status: Resource drilling
Nevsun Resources announced drilling results from its 2015 drilling on the Harena VMS target, located 10 kilometres south of its operating Bisha copper/zinc/silver/gold mine in Eritrea. The close proximity to the Bisha processing facility may allow the Company to schedule incremental near term feed to the existing Bisha operation. Highlights from the step-out drilling include: 67.2 metres grading 1.66% Cu, 6.62% Zn, 0.41 g/t Au and 28 g/t Ag. Both thickness and grade in the massive sulphide mineralization appear to continue to increase with depth. The Company also announced additional mineralization from the gold rich stringer zone, which is situated between the upper and lower base metal massive sulphides zones. Drilling intersected an interval of 11.0 metres of stringer mineralization averaging 7.49 g/t Au and 171 g/t Ag. The Harena deposit has both oxide and primary resources. The small near-surface indicated oxide resource totals 20,000 tonnes at a grade of 2.5 g/t Au and 25 g/t Ag, as well as 100,000 tonnes of 4.2g/t Au and 33 g/t Ag as inferred. The primary resource estimate includes 3.2 million tonnes grading 0.8% Cu, 3.8% Zn, , 0.5 g/t Au and 27 g/t Ag in the indicated class, as well as an inferred resource of 6.4 tonnes of 1.1% Cu 3.7 % Zn, 0.6 g/t Au and 38 g/t Ag. Other similar style deposits in the area include the Northwest and Hambok deposits, both of which have NI 43-101 compliant resources. The Company is well positioned with $500 million in working capital and strong cash flow from the current copper dominated operation. As the Bisha mine continues deeper, the mine is expected to become a significant zinc producer starting in 2017.
Discovery history (April 2005): 22.95 metres @ 1.02% Cu, 2.83% Zn, 0.07% Pb, 0.5 g/t Au, 25.80 g/t Ag (H-003)
Current drilling: 67.2 metres @ 1.66% Cu, 6.62% Zn, 0.41 g/t Au, 28 g/t Ag including: 22.1 metres @ 4.61% Cu, 3.43% Zn, 0.99 g/t Au, 63 g/t Ag. 11.0 metres @ 7.49 g/t Au, 171 g/t Ag (Gold zone).
Risks AnalysisData contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note - a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity - it is an information reference source to help quantify the meaning and relevance of early stage exploration results. Relevant Disclosures Applicable to: Drill Tracker Weekly 1. The research analyst or a member of the analyst's household owns and/or has options to acquire shares of the subject issuer. At the date of this release, Wayne Hewgill, owns no shares in any companies in this report. 2. Foran Mining Corp. (FOM) is covered at Mackie Research Capital Corporation by analyst Peter Campbell. In February 2013, an Analyst from Mackie Research Capital Corporation visited Foran's McIlvenna Bay Project site. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation. 3. Lake Shore Gold Corp. (LSG) is covered at Mackie Research Capital Corporation by analyst Barry Allan. Analyst Certification I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst's personal views and (ii) no part of the research analyst's compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.