Nevsun Resources Ltd. (TSX: NSU) (NYSE AMERICAN: NSU) is pleased to announce the initial resource for the Timok Lower Zone deposit, a joint venture with Freeport-McMoRan Exploration Corporation.
Timok (Cukaru Peki) Lower Zone Initial Mineral Resource Highlights:
Nevsun’s CEO, Peter Kukielski, said “The Timok Lower Zone ranks high among world porphyry deposits by tonnage and by grade. With 1.1 billion tonnes grading 1.11% copper equivalent, the Timok Lower Zone benchmarks well against planned and operating block cave mines. We will continue to work with Freeport to determine next steps for advancing the Lower Zone.”
Mr. Kukielski went on to comment, “We expect that Timok (Cukaru Peki) is the start of a new generation of mines in Serbia’s Bor region. The Lower Zone remains open to the north and at depth. There are multiple high grade Upper Zone style exploration targets above the Lower Zone and our exploration licenses have the potential to host entirely new porphyry systems with associated high grade Upper Zone style mineralization.”
Timok (Cukaru Peki) Lower Zone Resource
The Lower Zone at Timok consists of two distinct mineralization styles: first a typical porphyry copper style mineralization characterized by potassic alteration and chalcopyrite with elevated molybdenum, and second a high sulphidation style mineralization consisting of sericitic alteration with elevated arsenic and base metals (lead, zinc and bismuth). The porphyry copper mineralization is by far the most important volumetrically at over 95% of the volume at the lower cut-off. The mineralized envelope extends above the Upper Zone on the east side with elevations ranging from approximately 500 meters below surface to just over 2,200 meters below surface. See Figure 1 for deposit configuration and Figure 2 for a visual representation of the mineralized zones.
Table 1 provides the complete inferred mineral resource estimate. The Lower Zone inferred mineral resource has low arsenic content, with less than 50 ppm on average and is well within the typical range for porphyry deposits.
The mineral resource model includes the data from the recently completed $20 million drill program and has an effective date of June 19, 2018. Modelling, resource estimation and tabulation were completed by Dr. Gilles Arseneau of SRK Canada. The deposit was modelled using LeapFrog and a 0.2% copper equivalent cut off using 102 drill holes and 14,592 assays. Results are tabulated using a dollar equivalent using US$3.00 a pound for copper and US$1,400 an ounce for gold, with recoveries of 87% for copper and 69% for gold in the porphyry copper zone based on initial test work performed on representative samples. The mining method is assumed to be by block cave.
The mineral resources were estimated using ordinary kriging and multiple passes with increasing search radii from 75 metres up to 250 metres and required at least two drill holes within the search volume to estimate a block grade. A final pass was used to infill any un-estimated blocks that were within 50 metres of holes within the 0.2% copper grade shell.
All estimated blocks were classified as inferred mineral resources due to wide-spaced drilling and the lack of any inclined drill holes.
Qualified Persons Statement
The technical content of this press release has been reviewed by Gilles Arseneau of SRK Canada, a Qualified Person as defined by the National Instrument 43-101. Peter Manojlovic, VP Exploration, is Nevsun’s designated QP and has also reviewed and approved this press release. All scientific and technical information in this press release is based on information prepared by or under the supervision of those individuals.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is the 100% owner of the high-grade copper-gold Timok Upper Zone and 60.4% owner of the Timok Lower Zone in Serbia. The Timok Lower Zone is a joint venture with Freeport-McMoRan Exploration Corporation which currently owns 39.6% and upon completion of any feasibility study (on the Upper or Lower Zone), Nevsun Resources Ltd. will own 46% and Freeport will own 54%. Nevsun generates cash flow from its 60% owned copper-zinc Bisha Mine in Eritrea. Nevsun is well positioned with a strong debt-free balance sheet to grow shareholder value through advancing Timok to production.
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