New greenfield discoveryNevsun came out with positive news on Thursday, however, announcing yet another discovery near the Bisha mine. The company has found a new massive sulfide discovery at its grassroots Asheli prospect on the Mogoraib River exploration license, which lies 20 kilometers southwest of the mine. Highlighted intercepts from the discovery include 2.29 percent copper, 4.5 percent zinc, 0.45 g/t gold and 37 g/t silver over 22.9 meters, as well as 1.26 percent copper, 6.08 percent zinc, 0.28 g/t gold and 26 g/t silver over 20.9 meters. "Our new greenfield discovery at Asheli is exciting in that it shows that the mineralizing systems on the Asheli trend are capable of producing high grade deposits with good thicknesses of massive sulphide," said Davis in Tuesday's release. "With over 4 kilometers of untested strike length with similar geology the potential for further discoveries on this trend looks very promising." Stefan Ioannou of Haywood Securities said in a note to clients that he is pleased with the results. "Drilling to date has only tested ~1 km of the Asheli Trend and mineralization remains open in multiple directions," the note reads. "Hence, we view the remaining ~4 km of untested trend as highly prospective." Ioannou also notes that assay results are pending from an additional 15 holes drilled at Asheli, and that the company is planning to continue work in the area later in 2015. Overall, Ioannou is retaining his "buy" rating for Nevsun with a price target of $5.50 per share. Certainly, those human rights allegations are worrying, but the market still reacted positively to Nevsun's latest discovery. At close of day Thursday, Nevsun's share price was up just under 6 percent, at $4.85. The company's share price has experienced a bit of a dip over the past week or so, but is still up about 8 percent year-to-date.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article. Related reading: Nevsun Resources Accused of Using 'Slave Labor' at Eritrea Mine Nevsun Resources Spikes on Possible Billion-dollar Bid Nevsun Resources: Good News, Bad News from Copper Investing News