Mineweb, By Lawrence Williams – Canada’s Nevsun Resources has now achieved its first major milestone with its initial gold pour at its new Bisha gold, silver and base metals mine in the poor East African state of Eritrea – a country which has been attracting a great deal of mining and exploration interest of late.

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.

VANCOUVER, BRITISH COLUMBIA — Nevsun Resources Ltd. (TSX:NSU)(NYSE Amex:NSU) is pleased to announce its successful first gold pour at the Bisha Gold Mine during late December. The first pour was part of the plant commissioning process and rendered two dore bars totaling 26 kilograms (approx. 920 ounces).

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.

Winston’s Growth Stock Report on Nevsun Resources (NSU, TSX) and the start of commissioning in Eritrea’s first modern day mine.

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.

VANCOUVER, BRITISH COLUMBIA, Sep 08, 2010 (MARKETWIRE via COMTEX) — Kin Communications Inc. is pleased to announce that its client, Nevsun Resources Ltd. (CA:NSU 5.27, -0.16, -2.95%) (NSU 5.10, -0.06, -1.16%) , reached $1 billion market capitalization.

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:

VANCOUVER, BC – Nevsun Resources Ltd. (TSX:NSU)(NYSE Amex:NSU) is pleased to announce it has added Scott Trebilcock to its senior management team as VP Business Development and Investor Relations.

Scott is a process engineer and MBA with 14 years of industry and consulting experience, working with Nautilus Minerals in Toronto, PRTM management consultants in Boston, Noranda in both Toronto and Philadelphia and Hatch Associates in Toronto, with significant international experience throughout. His combination of technical background and strong relationship building skills will add further strength to the Nevsun management team.

Scott will be initially focused on the transition of Nevsun from mine developer to a mid tier producer. Nevsun expects its Bisha project in Eritrea will be in commercial production during Q1 2011, producing at an annualized rate of over 400,000 ounces of gold per year, with industry low operating costs of less than $250 per ounce.

The resulting cash flow will be a company changer as well as a significant benefit to the State of Eritrea as it develops its mineral industry.

Scott commences his work with Nevsun on September 15, 2010 and will be re-locating from Toronto to Nevsun’s head office in Vancouver. Scott can be reached via email at strebilcock@nevsun.com or by phone through the Nevsun head office at +1 604 623 4700.

We welcome Scott to the Nevsun team.

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. (TSX:NSU)(NYSE Amex:NSU) -

At the request of Market Surveillance of the Investment Industry Regulatory Organization of Canada (IIROC), on behalf of the Toronto Stock Exchange, the Company wishes to advise that it is not aware of any material undisclosed development that would cause the significant upward movement of the Company’s share price.

The Company’s Bisha Project continues to be on target for plant commissioning in late 2010. We refer you to other recent news releases for information about the Bisha Project.

NEVSUN RESOURCES LTD.

Cliff T. Davis

President & Chief Executive Officer

For further information, please contact:

Nevsun Mine

(The Northern Miner) – Nevsun pushes towards production in Eritrea Vancouver – Nevsun Resources (NSU-T) is now more than halfway through building Eritrea’s first mine, on schedule to commission the gold silver-copper-zinc operation before the end of the year.

The company began prestrip mining in March at Bisha, which sits 250 km west of the capital city Asmara. The prestrip is expected to take six month, as a hill adjacent to the deposit must be partially removed to make room for the open pit. Nevsun expects to start stockpiling ore early in the third quarter.

Installation of the semi-autogenous grinding (SAG) and ball mills should be finished by the middle of the year, structural steelwork is well advanced, and workers are laying down the impermeable liner of the tailings facility.

The Bisha mine will tap into a layered volcanogenic massive sulphide (VMS) deposit. The top layer, a goldrich gossan, contains 4 million proven and probable tonnes grading 7.99 grams gold per tonne and 32.85 grams silver per tonne. Those reserves will feed the 5,000-tonne-per-day mill for 2.5 years.

Next, the mill will churn through a 6.4-million tonne supergene layer grading 4.4% copper, 0.83 gram gold, and 35.98 grams silver for three years. Finally, the mine will reach the primary sulphide portion of the deposit, which currently contains 9.7 million proven and probable tonnes grading 7.21% zinc, 1.14% copper, 0.76 gram gold, and 54 grams silver.

The current mine plan only covers ten years of operation but Nevsun is confident Bisha will be active for much longer than that.

First, the pit was designed using very conservative metal prices, including US$400 per oz. gold. With prices currently more than double those used to build the pit shell, Nevsun is redesigning the pit to access the deeper, zinc-rich zone at the south end.

An area known as the Hangingwall Copper zone will likely add resources to the expanded pit, reducing the increase in strip ratio.

And Nevsun has completed some infill drilling at Harena, a satellite zone 9.5 km southwest of the Bisha deposit, and further work is planned to assess its potential for additional mill feed. In particular, the company is probing Harena’s southwest strike extension; the gravity and electromagnetic signatures that revealed mineralization at Harena continue to the southwest but have not yet been fully drill-tested. Nevsun also plans to drill other VMS targets on the Bisha property.

With Bisha’s cost requirements staying under control – in February Nevsun revised the original capex projection of US$250 up by just 4% to US$260 – the company has managed to retain a cash position of $29 million. And Nevsun expects Bisha to start producing positive cash flow in the first quarter of 2011.

Using metal prices of US$900 per oz. gold, US$2.25 per lb. copper, US75¢ per lb. zinc, and US$12 per oz. silver, Bisha should generate a 45% internal rate of return, enabling payback of development costs in 1.6 years.

Nevsun’s share price has spent April ranging between $2.85 and $3.20. The company has a 52-week share price range of $1.21 to $3.66 and has 193 million shares outstanding.

Irina Waqar, CEOWORLD - Gold is in a bull market because its core fundamentals are so outstanding. The gold price, like every other commodity or stock, is ultimately driven by supply and demand. For many years various central banks around the world, other countries’ equivalents of the US Federal Reserve, were willing to sell enough gold into the open markets to more than cover the huge structural supply deficit between mined supply and world demand.

Gold is a hot item for several reasons right now. For one thing, gold production is either flat or falling around the world. Inflation, flat supply and prevailing uncertainty in other investments is driving the price of gold ever higher.

The primary fundamental strategic reason to invest in gold at this particular moment in history is to ride the already in progress re-pricing of the Ancient Metal of Kings to a higher price level where supply and demand meet and offset one another and eliminate the gold shortage. Investing in gold is not like normal stock investments of investing in real estate for that matter. The real estate market is no where near as stable as the gold market and as such in no where near as reliable.

A must read: Top 5 Gold Stocks to buy and trade for 2010

Goldcorp (GG, News, Press Releases: 40.20 0.00 0.00%, yield: 0.45, cap: 29.501B, 1yr target: 49.54)- Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. The company produces and sells gold, silver, and copper. It also holds interests in lead and zinc projects. The company was founded in 1954 and is headquartered in Vancouver, Canada.

Barrick Gold Corporation (ABX, News, Press Releases: 41.23 +0.28 +0.68%, yield: 0.98, cap: 40.591B, 1yr target: 50.29)- Barrick Gold Corporation primarily engages in the production and sale of gold, as well as related activities such as exploration and mine development worldwide. The company has a portfolio of 26 operating mines and a pipeline of projects located across various continents, including North America, South America, Australia, and Africa. It also produces copper and holds interests in oil and gas properties located in Canada.

Rubicon Minerals Corp. (RBY, News, Press Releases: 4.17 +0.09 +2.21%, yield: N/A, cap: 884.6M, 1yr target: 6.00)- Rubicon Minerals Corporation is a well-funded, top tier, gold exploration company deriving its strength from a hands-on management team with a track record of discovery. Rubicon’s focus is in highly prospective gold producing areas of North America. It controls over 65,000 acres of prime exploration ground in the prolific Red Lake gold camp of Ontario, Canada, which hosts Goldcorp’s high-grade, world class Red Lake Mine.

Royal Gold (RGLD, News, Press Releases: 51.3999 +0.4299 +0.84%, yield: 0.67, cap: 2.167B, 1yr target: 56.96)- Royal Gold, Inc., together with its subsidiaries, acquires and operates precious metals royalties. The company owns royalty interests in various production, development, evaluation, and exploration stage projects, which explore for gold, silver, copper, lead, and zinc metals. It holds royalty interests in properties located in the United States, Canada, Mexico, Africa, Argentina, Chile, Australia, the Russian Federation, Finland, Bolivia, Burkina Faso, Colombia, Honduras, Nicaragua, the Republic of Guinea, and Central America.

Richmont Mines Inc. (RIC, News, Press Releases: 4.18 +0.01 +0.24%, yield: N/A, cap: 109.1M, 1yr target: 0.00)- Richmont Mines Inc.. The Group’s principal activity is to acquire, explore and develop mining properties, principally gold. The Group operates in many provinces: Quebec, Ontario and Newfoundland and Labrador. The Group’s mining properties consist of Beaufor Mine and Island Gold Mine.

Freeport-McMoRan Copper & Gold Inc. (FCX, News, Press Releases: 84.775 -1.275 -1.48%, yield: 0.17, cap: 36.501B, 1yr target: 103.07)- Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. It primarily explores for copper, gold, molybdenum, silver, and cobalt deposits. The company holds interests in various properties located in North and South America; Grasberg minerals district in Indonesia; and Tenke Fungurume minerals district in the Democratic Republic of Congo. As of December 31, 2009, its consolidated recoverable proven and probable reserves totaled 104.2 billion pounds of copper, 37.2 million ounces of gold, 2.59 billion pounds of molybdenum, 270.4 million ounces of silver, and 0.78 billion pounds of cobalt.

Nevsun Resources Ltd. (NSU, News, Press Releases: 3.12 0.00 0.00%, yield: N/A, cap: 601.0M, 1yr target: 1.30)- Nevsun Resources Ltd. was incorporated in British Columbia on July 19, 1965, originally under the name of Hogan Mines Ltd. Since inception, the Company has undergone four name changes until December 19, 1991 when it adopted the name of Nevsun Resources Ltd. Nevsun is focused on advancing its high grade gold, copper and zinc Bisha Project in Eritrea.

Newmont Mining (NEM, News, Press Releases: 53.97 +0.07 +0.13%, yield: 0.74, cap: 26.499B, 1yr target: 59.21)- Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. Its assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. As of December 31, 2009, Newmont had proven and probable gold reserves of approximately 91.8 million equity ounces and an aggregate land position of approximately 33,400 square miles.

Nevsun Eritrea

Nevsun ownership interest in the Bisha Project

On October 26, 2007 the Company and the State-owned Eritrean National Mining Corporation (ENAMCO) entered into an agreement to increase the State’s participation in the Bisha project. ENAMCO agreed to purchase at fair value a 30% paid participating interest to add to its 10% free participating interest provided by Eritrean mining legislation, resulting in a total State participation of 40% (30% contributing; 10% free carried).

The final amount to be paid by the State will be determined by an independent valuator and will be based on the net present value of 30% of the project, as evaluated upon the first shipment of gold from the mine. As a first provisional payment, ENAMCO paid the Company $25,000,000 during Q1 2008.

Liquidity and Capital Resources

The Company’s cash at December 31, 2009 was $29.1 million (December 31, 2008 – $40.7 million).

In January 2008 the Company received $25 million related to the provisional payment on acquisition by ENAMCO of its contributing interest in Bisha. ENAMCO continues to fund its share of all costs of the Bisha project and advanced $21.9 million to Bisha during 2009. The advances incurred $1,413,850 of interest, which was capitalized to property, plant and equipment. The interest and advances will be repaid out of operating cash flow, are not callable and have no specified repayment terms.

In May 2008 the Company received $20 million from the sale of its Mali assets. In July 2008 the Company also collected $3 million from PMI Gold Corporation related to the 2007 sale of its Ghana assets.

In September 2009 the Company received a $20 million loan from ENAMCO. In October 2009 it then raised $30.1 million by way of a non-brokered private placement of 11,500,000 common shares.

From these cash resources the Company used $83.8 million in its operating and investing activities during 2009 (2008 – $45.1 million). The Company has spent $122.4 million on the Bisha capital project and based on current estimates, as at December 31, 2009 required approximately $137.6 million to complete the project.

Subsequent to December 31, 2009 the Company raised a further $111.5 million by way of a non-brokered private placement of 52,000,000 common shares. The Company is confident the funds from this private placement, together with its existing cash and the ongoing one-third contribution by ENAMCO to Bisha will be sufficient to see the Bisha project through to cash positive operations.

In July 2009 the Company’s subsidiary, Bisha Mining Share Company (BMSC) had arranged debt facilities totalling $235 million for the Bisha project. The debt package was a mix of senior and subordinated facilities from a lending group comprised of seven institutions from Europe and South Africa.

In February 2010 the Company changed its approach to funding the Bisha project to ensure the project continued on schedule. While Bisha had already completed project debt agreements with European and South African lenders, these debt facilities had not yet been drawn and it became apparent that access to the debt in the required time frame was uncertain. The Company and ENAMCO concluded that the debt facilities were unreliable and inconclusive for the Bisha project.

As a result of the change in approach to funding the Bisha project, during Q1 2010 the Company expensed approximately $8 million of costs related to securing the debt financing that at December 31, 2009 were treated as deferred finance costs and were included in property, plant and equipment.

Contractual Obligations

As of December 31, 2009 the Company had the following contractual obligations:

-

The Company also has an environmental bond to cover remediation liabilities for Bisha in the amount of $2,000,000 at a cost of 1% per annum.

The Company has not entered into any specialized financial agreements to minimize its commodity risk, investment risk or currency risk. There are no off-balance sheet arrangements, except for the purchase price adjustment on the disposition of the 30% contributing interest in Bisha, acquired by ENAMCO (the Eritrean State mining company). Refer to note 10(a) of the annual consolidated financial statements for a description of the purchase price adjustment with ENAMCO.

Also refer to note 4 of the annual consolidated financial statements for a description of the Company’s financial instruments and risk management.

Financial Report 2009: http://www.nevsun.com/docs/financials/1209_NSU_MD&A_Final.pdf

Nevsun Resources

Nevsun Resources Ltd. (TSX:NSU / NYSE Amex:NSU) is pleased to announce its recent financial position and its annual results for 2009. All amounts are expressed in United States dollars.

The Company’s cash position at the end of March 2010 is approximately $118 million.

For the year ended December 31, 2009 the Company has reported a loss of $5.5 million. The results compare to 2008 when the Company reported a loss of $5.7 million, including $2.0 million of income from discontinued operations.

Included in the Company’s MD&A are management’s report on the Company’s Bisha Project construction progress, as well as economics and cash flows for the project. The project is now over 50% complete and commissioning is expected to commence in late 2010. Photographs of the construction progress can be found at www.nevsun.com/properties/photo_gallery.

Complete details of the 2009 financial statements and management’s discussion and analysis can be found on the Nevsun website at www.nevsun.com as well as on Sedar at www.sedar.com and EDGAR at http://www.sec.gov/edgar/searchedgar/webusers.htm.

Forward Looking Statements:

The above contains forward-looking statements concerning cash position, construction progress 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.

Cliff T. Davis

President & Chief Executive Officer

By Barry Sergeant – Mineweb

JOHANNESBURG - Global Tier II gold miner African Barrick is set to list in London on Friday with the ticker symbol “ABG”, amid what specialists in the mining sector have described as a “vacuum” in the London space, long occupied by Randgold Resources, and to some extent by Petropavlovsk, with Russian interests, and more than just a gold play.

Given the underlying metrics, investors in London-listed precious metal stocks have also shown a ferocious appetite for Fresnillo, the Mexican miner which advertises itself as No 1 in global primary silver production. Given the demonstrable premium commanded by so many listed precious metal stocks listed around the world, it can be argued that mining the markets makes at least as much sense as all the bother, sweat and capital expended on actually mining.

Toronto-based Barrick, the world’s biggest gold producer, by value and output, is spinning off 25% of African Barrick, which mines at four addresses in Tanzania. African Barrick is currently marketing a 100m share offering out of 404m post initial public offering (IPO) capital, at GBP 5.50 to GBP 6.50 a share, for a potential market valuation range of USD 3.5 to 3.9bn.

“It’s amazing to us” says one London-based sales-trader, “that it has taken so long for a serious gold company to put up an alternative for European investors”.

African Barrick broker JPMorgan – also the name behind the Fresnillo listing early in 2008 – has Randgold Resources at two times net present value (NPV), Red Back

(another African miner) at 1.8 times, Petropavlovsk at 1.3 times, and African Barrick pitched, for now, at about 1.5 times, for about 800,000 ounces of gold production a year, increasing to a million ounces. Petropavlovsk only in 2009 merged with an iron ore outfit, and is now the subject of speculation that it could unbundle, given the significant global heave towards iron ore stocks.

Barrick could raise USD 875m to 975m from the African Barrick listing, and will also then have “acquisition currency” via the 75% it retains in African Barrick which, in itself, would have its own stock as acquisition currency after it lists. Possible targets for any predatory miner include Canada-listed Centamin Egypt, a long life 7m ounce resource Egyptian producer, with attributable 100,000 ounces annual production in 2011 increasing to 150,000 ounces, with an underground expansion, by 2012. Centamin trades at an estimated 1.5 times NAV, applying a 6% discount rate.

Canada-listed Banro, a DRC gold developer with a target 100,000 ounces of annual production by the end of 2011, is seen as modest value, with its 11m ounce resource. Banro is seen as the cheapest significant gold resource in Africa, trading at around USD 12.00 an ounce, compared to Moto’s takeover metric of USD 30.00 an ounce.

Moto, which holds a substantial resource in the north eastern DRC, was taken over jointly during 2009 by Randgold Resources and global gold major AngloGold Ashanti, for what turned out to be CAD 557m. There will be great interest in the upcoming mine build, given that the only significant mining investments in the country in the modern era have been far to the south, in southern Katanga Province. The Moto deposits, since renamed Kibali, were once mined, fairly lightly, by one-time Belgian colonizers.

For ardent gold stock specialists, activity in Africa has become more than of passing interest, given around 100 listed names that are active on the continent, and also sometimes elsewhere. Beyond the majors, such as Newmont, with significant interests in West Africa, about 20 or so stocks specialising in gold on the continent receive attention from professional investment analysts.

Among stocks that can be regarded as above-interesting, there is Australia-listed Mineral Deposits, which produced 160,000 ounces of gold in 2009 from its Sabodala gold mine in Senegal. The company has indicated production rising to 200,000 ounces a year by 2012, financed by internal cashflow and modest debt. The company is a potential consolidation play with neighbouring Oromin, and also Bassari Resources.

Canada-listed Nevsun Resources has for years been involved in making it above developer status, and is now doing that with its fully financed 200,000 ounces of gold a year profile kicking off around the end of the year from what some have described as its “stunning” Bisha Project, in Eritrea.

Very high grade gold oxides could produce cash flow of as much as USD 170m next year, before Bisha becomes a high grade open pit mine by 2014, featuring copper and also zinc, with silver, to boot. What kind of miner Nevsun would then be is a matter for some discussion, but, for now, the gold classification sticks.