Nevsun Resources Eritrea

The Globe and Mail attempts to identify gold producers that are good value plays in its Thursday edition. The Globe’s Sonali Verma writes in the Number Cruncher column that she employed the services of Wickham Investment Counsel managers Michael Bowman and Allan Meyer to help screen for gold stocks with low price-to-earnings ratios, low debt and healthy cash balances.

Mr. Meyer says, “A large number of gold stocks are hitting our value screens, something that has been unheard of in the past. … Of the 715 companies that we follow on a value screen, these gold companies are in the top quartile.” He points to “substantial” increases in 2012 earnings over 2011 — on average, the increase in the earnings per share for the companies Wickham recommends is 62 per cent.

The surging price of gold has lifted earnings substantially. Mr. Bowman says, “Companies are yanking the stuff out of the ground at $400 an ounce and selling it at $1,700 an ounce.” Another reason the miners are popping up on the value screen is that gold stocks have not jumped as fast as the price of bullion has. Wickham’s top gold stocks are Nevsun Resources, Primero Mining, Iamgold, Aurizon Mines, Capstone Mining and Pan American Silver.

To read the full article visit: The Globe and Mail

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3. Eritrea: Nevsun Resources Closes Debt Facility for Bisha Project
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5. Nevsun Resources Reaches Billion Dollar Milestone

Eritrea Nevsun Bisha Mine

VANCOUVER, BC – Nevsun Resources Ltd. (TSX:NSU)(NYSE Amex:NSU) announces an increased semi-annual cash dividend to US$0.05 per common share (US$0.10 per common share annually).

The dividend is payable on January 15, 2012 to shareholders of record as of the close of business on December 31, 2011. This is the Company’s second dividend after declaring its first dividend in May 2011. This revised dividend represents approximately 5% of cash from operating activities for the past two quarters for 2011.

“We are focused on generating cash flow from operations and expanding reserves at Bisha, while reviewing growth opportunities for Nevsun. With $227 million cash at quarter end and significant ongoing cash flow, Nevsun is well positioned to fund growth and provide a dividend return to our shareholders,” said Cliff Davis, CEO. He went on to comment, “Today’s increased dividend further differentiates Nevsun from its peer group and demonstrates our confidence in future cash flow.”

This dividend qualifies as an ‘eligible dividend’ for Canadian income tax purposes.

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Nevsun Resources Eritrea

Mallory Stone reports that the Financial News Network (FFN) looked at the Gold industry and measured relative performance to find the top stocks. Relative outperformance is a bullish sign of underlying fundamental and technical strength. FFN looked at thursday’s price action of all companies in this peer group.

Nevsun Resources (AMEX:NSU) ranks first with a gain of 9.07%; Royal Gold (NASDAQ:RGLD) ranks second with a gain of 6.77%; and Yamana Gold (NYSE:AUY) ranks third with a gain of 5.65%.

AngloGold Ashanti (NYSE:AU) follows with a gain of 4.56% and Randgold Resources (NASDAQ:GOLD) rounds out the top five with a gain of 4.41%.

Nevsun Resources Ltd. is a gold producer and base metal developer. The Company has a gold-copper-zinc mine in Eritrea.

Related posts:

1. Nevsun Resources Eritrea Annual Report 2008
2. Eritrea: Analyst Says Nevsun Resources Future Prime Takeover Candidate
3. Meet Sunridge Gold and Nevsun Resources at Mining Indaba 2012
4. Video: Nevsun Resources CEO Cliff Davis on BNN
5. Wickman sees value in Nevsun Resources, says The Globe and Mail

Both companies have promising mining projects in the Red Sea State of Eritrea. Nevsun has just announced that its Bisha mine has reached commercial production in February 2011 and South Boulder Mines spectacular share price surge seems not to be running out of fuel due to the huge potential investors see in potash and Eritrea.

PDAC is one of the most important investment trade events in the world of exploration. With over 22,000 industry representatives and delegates from over 118 countries the trade show hosts 400 exhibitors promoting mining industry services, products technology and jurisdictions.

The convention is known to be attended by many company representatives seeking out for the right investment and trade deal as well as Geoscientists, Mining media, Mining service sector representatives, International government representative and other industry stake holders.

Other exhibitors from secondary industries include Air Transportation Services, Insurance Companies, Internet Services, Labatories/Labatory Suppliers, Law Firms, Software Companies, Satellite Communications, Universities and more.

Nevsun Resources will be presenting on Monday, March 7 at 11:00 am in Room 801B in the Volcanogenic Massive Sulphides Session and exhibiting at booth 2608A on March 7 and 8 at the Investor Exchange floor.

South Boulder Mines Managing Director Lorry Hughes will be presenting on Tuesday, March 8 at 10:50 am in Room 715 AB, in the Metro Toronto Convention Centre, South Building.

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1. Nevsun Resources to Exhibit at PDAC 2010
2. South Boulder Mines CEO Lorry Huges to Present at International Mining Convention in Cape Town
3. South Boulder Mines Appoints Potash Expert as Board Member
4. South Boulder Mines Amongst Top Ten ASX Listed Resource Companies
5. South Boulder Mines Fair Share Price Between $6.25 to $29.95, Says Investment Consulting Firm

Watch the full clip here: BNN: NEVSUN RESOURCES CEO CLIFF DAVIS

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2. Nevsun Resources has the Best Relative Performance in the Gold Industry (NSU, RGLD, AUY, AU, GOLD)
3. Nevsun Resources Reaches Billion Dollar Milestone
4. Nevsun Hits Commercial Production at Bisha, Eyes Other Opportunities
5. Eritrea: Analyst Says Nevsun Resources Future Prime Takeover Candidate

Nevsun’s President Cliff Davis states, “We are very pleased with the commissioning program to date. As the plant moves into steady state operations, we continue to increase feed grade to the mills as gold recovery is at or above schedule. Thanks to the hard work of the Bisha team, their contractors and the continued support from the State of Eritrea , we are on track to be a mid-tier gold producer by the end of this quarter.”

Bisha Resource and Reserve Expansion Program

The 2011 Resource and Reserve Expansion Program for Bisha is expected to increase mine life and enable throughout expansion. The program includes drilling incremental resources and increasing the classification of existing resources.

“In addition to achieving commercial gold production this quarter, our second major objective for the year is to expand Bisha’s reserves and resources,” states Davis. “Through infill drilling and updated resource models, we expect significant increases to our copper, gold, and zinc reserves, in addition to expanding the total resource base through in-pit, step-out and satellite deposit drilling.”

The program aims to expand resources and reserves in four ways:

• Resource and reserve restatement with recent metals pricing – end Q1 2011
• Drilling satellite deposit Harena – drill results in February 2011; resource statement in end Q1 2011
• Drilling Hangingwall Copper adjacent to Bisha pit – drill results in Q2; resource statement by end of Q4 2011
• Infill drilling deep primary sulphide material under Bisha Main pit – drilling in Q2; resource statement by end of Q4 2011

The first new resource and reserve statement for Bisha is expected late this quarter, incorporating more recent metals pricing and other updated mine plans than the previous 2006 estimates. Later in 2011, subject to drill results, the Company expects a second increase to Bisha’s resource and reserves by including results from the Hangingwall Copper and its infill deep drilling at Bisha Main.

The Harena drilling program concluded just before the holidays in December 2010, after 2,449m of diamond drilling. Assays are due in February, with the objective of generating an incremental resource statement and applying for a mining license later this year so the oxide gold material can be co-processed with Bisha Main’s ore.

The program to drill the Hangingwall Copper has commenced with two drills mobilizing to site. The program is budgeted for up to 12,000m over three months. After this program, the drills will move to Bisha Main, where deep drilling will commence. The program is budgeted for 14,000m of drilling, to infill drill the Bisha Main pit resources to 450m, with the objective of increasing the classification and quantity of resources.

Forward-Looking Statements: The above contains forward-looking statements concerning development progress, planned exploration and development drilling and potential resource re-statements. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible” and similar expressions, or statements that events, conditions or results “will”, “may”, “could” or “should” occur or be achieved. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those described in the Management Discussion and Analysis of the Company. The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

NEVSUN RESOURCES LTD.

Cliff T. Davis, President & Chief Executive Office

A detailed stock quote on TSX: NSU can be found here.

Related posts:

1. Nevsun Commences Resource Expansion Drilling
2. Bisha Update & Plant Commissioning Targets
3. Nevsun Reports Drill Results from Harena Satellite Deposit in Eritrea
4. Nevsun Increases Mineable Reserves at Bisha by Fourty Percent
5. Nevsun Resources Drilling Results at the Harena VMS Deposit, Eritrea

Shabait – Asmara, 26 January 2011 – Bisha Mining Company today handed its first product of gold to President Isaias Afwerki. Present at the handing ceremony at the State Palace were the Minister of Energy and Mines, and Board members of the Company.

Bisha Mining Company would soon begin selling its products in the world gold market, according to reports. Bisha Mining Company is a share company operating jointly by the Eritrean National Mining Company and NEVSUN.

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Gold shares continue to be highly demanded as analysts expect gold prices to rise much higher in 2011. Confidence in the Dollar and Euro is low, given the fact that the US continues to accumulate debt and the eurozone is bailing out Greece, Ireland and possibly others to come such as Portugal, Spain and Italy.

Some investors believe it is too early buying into currencies while others fear the future collapse of the dollar as the International standard currency. Investors just do not see it happening and that’s why they look for other options. And let’s not forget hungry Chinese and Indian buyers who continue to drive the commodities boom as never experienced before by markets. The right time for Nevsun to become a major success for the gold mining sector as well as for Eritrea which is seeing the birth of a national industry.

Looking back in history, Nevsun Resources used to operate in North America for nearly 30 years before it shifted its focus southward toward Africa. It started with a few properties in Ghana and Mali, but eventually realized what Eritrea had to offer.

Nevsun made a discovery at Eritrea’s Bisha property in January 2003 and it soon became apparent to Nevsun and the Eritrean government that the development of this property would be of advantage to both parties’ interests.

“We got into Africa in 1993 and in 1997 received an enquiry about investing in Eritrea,” Nevsun CEO Cliff Davis said once in an interview. “By 1999, we were actively engaged in Eritrea and excited about the potential we saw there.”

Looking ahead Nevsun plans over the few next month to continue plant commissioning tests, troubleshooting, and rectify any issues that arise anticipating to ramp up to full commercial production during the course of Q1 2011.

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Nevsun’s Bisha Project is a large precious and base metal-rich volcanogenic massive sulphide (VMS) deposit located 150km west of Asmara, Eritrea, East Africa. Deposit mineralisation consists of gold and silver oxides, in addition to copper and zinc massive sulphides. The first pour at Bisha was part of the plant commissioning process and rendered two dore bars totaling 26 kilograms (approx. 920 ounces).

Nevsun’s President Cliff Davis noted, “… we are on time, under budget, and will considerably further the country’s development with the realisation of Eritrea’s first modern day mine. In the face of difficult capital markets during 2008/2009 and other obstacles overcome in 2010, we are proud of this significant accomplishment. We look forward to substantially growing Bisha in the coming months, in terms of reserves and throughput.”

Nevsun is focused on the rapid completion of the project, which began construction in September 2008. The mine is currently ramping up to full production which should be achieved in the current quarter. It will be a low-cost gold producer for the first two years, and then also a high-grade copper concentrate and zinc producer for the remaining mine life. Bisha’s Feasibility Study estimated an initial 10-year mine life with metal prices very conservatively based on $435/oz gold, $1.44/lb copper for the first 5 years ($1.28/lb thereafter), $0.57/lb zinc and $6.50/oz silver. Metal prices are now very considerably higher than this! Nevsun says that its studies show that it should be able to produce gold at an operating cost of less than $250/oz, with copper operating costs ranging from $0.54-$0.67/lb, and zinc operating costs at $0.50/lb (including all royalties and credits).

The Bisha Mine is expected to produce 1.06 million ounces of gold, 9.4 million ounces of silver, 734 million pounds of copper, and over one billion pounds of zinc over the 10-year mine life on which the feasibility study was based, but there is great potential to expand this further as exploration in its licence areas continues.

In November, Nevsun said that a resource expansion drill programme will test the extent of mineralisation in the hanging wall copper zone, which is immediately west and adjacent to the Bisha Main deposit. The programme will also include infill drilling at Harena, which lies 9km SW of the Bisha Main deposit. If favourable results are achieved, the company reckons that both areas could add significant tonnages to the its reserves, extending mine life and cash flow.

Nevsun plans at least 8,000m of diamond drilling, which is now under way and will be completed in Q1. After which, results will be assessed and, if favourable, resource/reserve estimation will be initiated on Harena while drilling continues on the hanging wall zone.

The company notes that past drilling at Bisha identified appreciable amounts of relatively low-grade copper mineralisation located up to several hundred metres into the hanging wall. Assays included 12.0m of 2.64% Cu, 19.6m of 2.11% Cu, 56.5m of 0.81% Cu and 31.5m of 0.76% Cu. Company geologists have interpreted that this zone may extend for hundreds of meters in a north south direction. Although this mineralisation is lower grade than the Bisha Main, it is potentially economic, which could add incremental value to the project.

The Harena deposit saw considerable drilling in 2005/06 that revealed a third potential VMS near surface deposit on the Bisha licenses, followed up by infill drilling in 2009. Harena is expected to provide a likely source of supplemental feed for Bisha’s processing plant, which could provide valuable cash flow and also prolong mine life.

Overall, Bisha’s mining and exploration licences cover a contiguous area of 110 km2. The Bisha Main and North West zone are both located within the 16.5 km2 mining license. Nevsun, through its Eritrean subsidiary, Bisha Mining Share Company (BMSC), holds the licences.

The State of Eritrea has a free carried 10% interest plus an additional 30% paid participating interest for a total 40% interest in Bisha. The amount to be paid to Nevsun by the State will be determined by an independent valuator and shall be based on the net present value of 30% of the project, as evaluated upon the first shipment of gold from the mine. The payments to Nevsun for the purchased interest shall be, over time, out of Bisha cash distributions.

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5. Nevsun Increases Mineable Reserves at Bisha by Fourty Percent

President Cliff Davis stated, “Nevsun’s first gold pour is a tremendous achievement that has been accomplished by a team of outstanding professionals on the ground in Eritrea and with the continued support of the Eritrean Government. It gives me great pleasure to say we are on time, under budget, and will considerably further the country’s development with the realization of Eritrea’s first modern day mine. In the face of difficult capital markets during 2008/2009 and other obstacles overcome in 2010, we are proud of this significant accomplishment. We look forward to substantially growing Bisha in the coming months, in terms of reserves and throughput. This success should be a good indicator of our strategic capability in the future.”

Over the next few months, plant commissioning will continue to test, troubleshoot, and rectify any issues that arise. Nevsun anticipates the ramp up to full commercial production during the course of Q1 2011.

Forward Looking Statements: The above contains forward-looking statements concerning development progress, planned mine output and project economics. Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimates,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those described in the Management Discussion and Analysis of the Company. The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

NEVSUN RESOURCES LTD.

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1. Bisha Declares Commercial Production
2. Nevsun Resources Ltd.: Bisha Commissioning and Resource Expansion on Track
3. Canada’s Nevsun Gets its Eritrean Gold Mine Under Way with First Gold Pour
4. Bisha Update & Plant Commissioning Targets
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Our biggest winner for 2010 so far is Nevsun Resources which has climbed over 170% in just months since we called the buy alert back in February.

Their flagship BISHA Project in Eritrea is still on track to start gold production by year end or early 2011. As I have also preached continuously, right after the discovery phase, the second biggest time to make capital gains on mining deals is just prior to production.

With Bisha producing significant cash flow for Nevsun, we like the potential for our readers to be riding this stock well beyond $6 next year. I am not the only one.

Yesterday GMP Securities initiated coverage on Nevsun giving a price TARGET of $6.65. “We are initiating coverage with a Buy rating and $6.65 target based on a 1.0x p/nav multiple of a hybrid 6%/10% discount rate DCF to account for a split precious and base metals production profile. We expect further upside from exploration and mine expansion potential expected to be visible in 2011.”

The upside potential of Nevsun as GMP points out is the future exploration and mine expansion. I’ll get to that in a moment. First let’s clarify what GMP is referring to when they say “split precious and base metals.”

To read the full article, please follow this link.

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5. Nevsun Begins Plant Commissioning

Nevsun shares hit a 52-week high of $5.45 pushing it over the $1 billion milestone. The milestone was reached following an announcement by the company in August that it had bought out a third party royalty on its 60% owned Bisha gold and base metals project in Eritrea, East Africa.

“We have had a fantastic year and we expect our growth to continue as we move from construction to commercial production in 2011,” said Cliff T. Davis, President and Chief Executive Officer, Nevsun Resources. “This rally in our share price and trading volumes demonstrates the confidence the market has in Nevsun and rewards the hard work we have put into the Bisha project in the Eritrea.”

Bisha will be the first modern mine permitted and built in Eritrea and will set the stage for subsequent development. Nevsun is well positioned to take advantage of the geologic potential in this area of East Africa through strong government relationships, zero debt and a number of very good exploration targets in the immediate area.

The Bisha mine is on track for commissioning in Q4 2010, and is expected to produce over 400,000 ounces of gold annually at a conservative operating cost of less than $250/oz during its first two years of operation.

“This is a significant achievement for Nevsun and we are proud to represent Nevsun in our portfolio of clients,” said Arlen Hansen, President of Kin Communications. “We continue to believe that significant upside remains for shareholders as the company trades at a much lower cash flow per share multiple than industry comparables based on first 5 years of projected Gold/Base Metals production.”

Current valuations do not consider upside associated with open-pit and underground potential at Bisha as well as regional exploration potential associated with Nevsun’s Eritrean land position.

Nevsun marks the second of Kin’s clients to reach the $1 billion market cap milestone.

Kin Communications celebrated Nevsun’s milestone along with Kin’s third anniversary. Kin is a full service investor relations firm specializing in mineral resource companies since Kin’s inception, clients raise over $438m since October 2007.

Kin Communications Inc.

Cristina Bittante, VP Marketing and Investor Relations

Contacts:

Related posts:

1. Nevsun Resources Ltd.: Bisha Commissioning and Resource Expansion on Track
2. Eritrea: Analyst Says Nevsun Resources Future Prime Takeover Candidate
3. Nevsun Resources Eritrea Annual Report 2008
4. Nevsun Resources Adds New VP to its Management Team
5. Video: Nevsun Resources CEO Cliff Davis on BNN