Mining Indaba

Mining Indaba (Mining Indaba Cape Town, February 6th– 9th, 2012) attracts mining analysts, fund managers, investment specialists and financiers from around the world.

Corporate presentations on the newest and most successful projects provide the foundation for institutional portfolio growth and asset diversification.

Government and agency presentations update policies and incentives for potential partners. Attendance is limited to professional investors and industry.

Speakers are by invitation and include top global economists, industry analysts and mining management.

Delegates who participate in the Mining Indaba conference develop essential knowledge, and experience first-hand the rewards and risks of investing in more than 130 mineral-rich countries around the world.

They personally meet the policymakers of these nations, and hear case studies of successful and unsuccessful ventures.

Mining Indaba provides companies with an ideal platform on which to build shareholder base, and with exposure to the most influential professionals specializing in natural resources worldwide. More information can be found

Mr. Michael Hopley, President & C.E.O. of Sunridge Gold will be speaking on Tuesday, February 7th, 2012 at 4:38pm in Hall 4

Also take the chance to meet Sunridge Gold Corp and Nevsun Resources Ltd.’s Cocktail Reception on February 8th, 2012 from 5:00pm to 8:00pm at the Westin Grand Cape Town Hotel in Vasca Da Gama Room.

Mining Indaba, Cape Town – Sunridge Gold & Nevsun Resources

Geocongress Asmara

As part of the Arabian Nubian Shield, Eritrea is now being acknowledged for its substantial mineral potential that ranges from VHMS polymetallic deposits associated with NeoProterozoic rocks of this Shield, to epithermal gold and Potash deposits in the younger Red Sea Rift-related sedimentary and volcanic rocks of Tertiary and Quaternary Periods.

The commencement of commercial production of the first modern mine at Bisha and the presence of different advanced projects of gold at Koka (Chalice Gold Mines, Zara project), base metal and gold deposits at Debarwa, Embaderho and Adi Nefas (SunRidge Gold Corp., Asmara Project) together with that of the Potash deposit at the Denakil Depression (South Boulders, Colluli Potash Project) makes Eritrea an attractive destination for potential metallic and non-metallic minerals exploration and mining.

In an attempt to promote the exploration and mining activities of the country and the region in general, the Ministry of Energy and Mines is organizing the Second Asmara GeoCongress 2011, to be held in October 4-8, 2011 in Asmara. The Ministry hereby invites all interested parties to attend the Congress.

The objective of the GeoCongress is to bring together earth scientists, mining experts, investors, service providers and regulators, to share experiences and to discuss, on current activities of exploration, mining and on various topics of interest. The event will provide a good opportunity for the participants to gather valuable information on recent views on the evolution of the geology of the region, new techniques and approaches in exploration and mining for metallic and nonmetallic minerals, and the social, environmental, financial and legal challenges associated with exploration and mining activities.

The GeoCongress is also expected to promote the mineral resources of the Shield and enhance regional cooperation and coordination. SUNA reports that Sudan’s Ministry of Minerals is going to take part in the Geocongress in Asmara and that the two sides will secure the  border mining projects and share data and experience on the Arabian Nubian Shield.

Themes

• Geology and evolution of the Arabian Nubian Shield
• Geological, geochemical and geophysical techniques of Mineral exploration
• Mining Techniques in the region
• Social and Environmental Aspects of mining activities
• Financial and Legal aspects of exploration and mining activities

Activities (Programs)

• Two days of presentations
• Tour to exploration and mine sites
• Excursion to the pristine waters of the Red Sea Coast including a train ride to Massawa.

The Geocongress Asmara 2011 is organized by the Eritrean Ministry of Energy and Mines.

Massawa

By: Berhane Woldu

If there is ever a region that epitomizes the economic future of Eritrea, it’s the Northern Red Sea Region. A frenzied sprawl of 1 million people it’s the second largest region in Eritrea.

It’s also a place where you will find six ethnic groups live together in harmony. At one recent colloquium conducted by the Governor of the region it was explained the various economic developments and the exploitation of natural resources such as agriculture, fisheries, tourism and mining.

All this speaks to Eritrea’s new growth path, one that is defined by Eritrean’s and Eritrean demand, rather than outsiders. The epicenter of the new growth is the country’s vast coastal expanse and the vast plains that are conducive for agricultural investment. While economist inside and outside Eritrea are bearish on Gold export from Bisha, Gash- Barcka region, it will be extremely bullish on the prospects of the Northern Red Sea Region which enjoys higher growth rates, favorable government policy, and the possibility of a huge consumption binge. Northern Red Sea Region also happens to be where the free zone ports of different size, 220 coral reefs and over 1000 fish species and virgin natural resources; oil, natural gas, iron ore, and lime stone are located. Mineral resources embedded on various areas of the region such as copper, gold, gypsum, granite, marble and ceramics. But while foreign firms are salivating over the potential gains to be had from all this, it’s the Eritreans themselves, rather than outsiders, who will tap them.

State-owned industries are an important factor in the nation’s economy. The basis for public intervention in the economy is the system of state holdings regulated by the ministry bearing that name, established in 1991; it representing a necessary tool by means of which the state can exercise control over, and act directly in, the country’s development, causing it to reach those results dictated by state economic policy. The state’s political authorities thus assign the economic policy objectives deemed necessary, and the agencies autonomously see to their desired outcomes. These agencies are: Ministry of Fisheries, Massawa Port Authority, Ministry of Education and many more who jointly work with the regional administration to implement the set goals and achieve the desired outcome in the domains of agriculture, fisheries, tourism, trade and industry, social services and infrastructural developments.

Development policies have now been put in place. The construction of Massawa airport, the Free Economic Zone, the expanding and reconstructing of ports, construction of oil jetty and the construction of cement fabric that is expected to produce 10,000K per day are some of the developments that have been achieved in the region.

Last year the government announced new Massawa infrastructure projects totaling 1 billion nakfa, even more than the 2009 figure. But unlike in the 2002 to 2008,Eritrea has the financial resources, experience, expertise and confidence it gained to build the country from zero economy to where it is today on its own.

What’s more, the fact that the region is rich in natural resources and borders politically troublesome areas like Ethiopia, Sudan and Yemen means that the regional government is more likely to want to exert greater control in commercial affairs.

The central government has given the coast more investment in the domains of agriculture, fisheries, tourism, trade and industry. The development of theNorthern Red Sea region is a study in state-led capitalism. Over the next 5 years, there’s going to be a huge shift in the nature of private investment in Eritrea; much more of the money is going to come from Eritrea rather than foreigners. In the wake of the 2009 world financial turmoil and still mired in fiscal retrenchment and tighter credit conditions, capital is becoming scarce and more expensive; hence, mobilization of internal capital as an alternative source of capital is essential to Eritrea. Eritrea’s current emphasis on balancing its economy towards domestic demand also means less of a golden handshake for foreign companies.

The sectors such as telecommunication, agriculture, and electricity are off limits to foreigners. Now, with the focus on agriculture, over 90,000 hectares have been utilized and a number of agricultural infrastructure programs have been implemented which increase domestic consumption. Local firms will have leg up in the growing region where no multinationals have yet to venture. Foreign firms’ relative lack of business experience in a region where culture, equality, mutual interest, ideology, trust, and relationship with the local bureaucracy play an even larger role is a major disadvantage. Even if all things were equal, basic geography will always favor costal area development. Transport costs are much higher for foreign firms than they are for domestic firms, and the proximity and cultural similarity of countries like Yemen and Arabia favor regional partnership rather than ventures run by Western multinationals.

In a highly stressed global economy, it’s wise to look internally and focus on Northern Red Sea Region long-term competitive advantages.

VANCOUVER, BC – Nevsun Resources Ltd. (TSX:NSU)(NYSE Amex:NSU) is pleased to announce the revised reserve estimate for its Bisha mine in Eritrea. The revixsed estimate has increased the total proven and probable reserves to 28.3 million tonnes from the previously reported 20.1 million tonnes (2006 feasibility study).

The net impact of higher throughputs and lower cut-off grade has resulted in an extended mine life of 13 years, while increasing previously reported robust cash flow.

Highlights

• 40% increase in reserves, using $1,015/oz gold, $15.85/oz silver, $2.40/lb copper, $0.92/lb zinc
• 20% increase in ore throughput starting in 2013
• Bisha 13 year undiscounted cash flow now totals $2,162,000,000 (1)
• Upgrade does not include pit expansion at depth, hanging wall copper zone or the Harena satellite deposit

¹Bisha Project undiscounted cash flow was estimated using what Nevsun has classified below as a medium metals price scenario, at $1,200/oz gold, $24/oz silver, $3.30/lb copper and $1.00/lb zinc, all on an after-tax, after expansion capex basis.

Mineral Resources, Effective Date: 01 January, 2011

Mineral resources for the project which are based on the same resource model as the model used in the 2006 feasibility study, were re-estimated within an optimized pit shell using a base-case gold price of $1,170/oz, silver price of $18.20/oz, copper price of $2.76/lb, and zinc price of $1.05/lb, and variable NSR cut-offs, based on oxidation state, and include:

Measured: 2,124 kt grading 2.72 g/t Au, 40.01 g/t Ag, 2.26% Cu, 2.07% Zn

Indicated: 27,726 kt grading 1.62 g/t Au, 38.79 g/t Ag, 1.53% Cu, 3.22% Zn

Inferred: 10,570 kt grading 0.67 g/t Au, 47.78 g/t Ag, 0.91% Cu, 5.67% Zn

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

For more information visit: kincommunications

Nevsun Resources Ltd. (TSX: NSU/NYSE Amex: NSU) is pleased to report the gold assays from the thirty-four infill diamond drill holes at the Harena deposit within its Bisha exploration license in Eritrea.

Nevsun plans to use the infill drilling results to complete a resource estimate, mine plan and mining license application to process the material at its Bisha processing plant.

Harena lies 9.5 km southwest of the Bisha Main deposit on an exploration license contiguous to the Bisha Mining license.

Highlights

• High grade, near surface oxide gold cap
• Copper and zinc primary sulphide underneath
• Potential additional feed for Bisha both in CIL and flotation phases

Select High Grade Results Include:

• Hole #H-078 – 18m at 11.78g/t Au, from 51.0 metres to 69.0 metres
• Hole #H-062 – 31.9m at 4.09g/t Au, from 5.6 metres to 37.5 metres
• Hole #H-063 – 51m at 3.34g/t Au, from 19.5 metres to 70.5 metres
• Hole #H-059 – 60m at 2.73g/t Au, from 13.5 metres to 70.3 metres
• Hole #H-081 – 18m at 3.89g/t Au, from 45.0 metres to 63.0 metres
• Hole #H-075 – 24m at 3.19g/t Au, from 46.5 metres to 70.5 metres

The drilling took place in the fall of 2010. Drill hole locations were selected to infill drill the gossanous oxide cap on 25m x 25m and 12.5m x 25m fences which is the same spacing used to define measured and indicatedresource categories at the Bisha Main deposit. The results were positive, and have provided increased confidence to the widths and grades of the gold bearing oxide cap at Harena. A resource estimate on the deposit has been initiated with results expected in late April. If the results are positive a reserve estimate and mine study will be done to support a mining license application.

Detailed results of gold in the oxide are in the attached schedule together with a map of hole locations. The results of assays on the sulphides are still in progress and will be disclosed at a later date.

Nevsun views the Harena deposit as a potential source of supplemental feed for the processing plant at Bisha. Supplemental feed can provide valuable cash flow as an extension to mine life without having to absorb any start-up capital costs.

Darin Wasylik, Senior Geologist for Nevsun, a qualified person under National Instrument 43-101, supervised and directed all work associated with the drilling program.

Sample preparation and analysis were conducted at ALS Chemex of Romania and Vancouver, Canada.

Forward Looking Statements: The above contains statements regarding positive drill results, indications that the Bisha concession may host multiple deposits, the Harena deposit as a potential source of supplemental feed and valuable cash flow, the close relationship between the interpreted graphitic horizon and the Harena massive sulphide, and additional prospects at the Harena area. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. . 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.

TORONTO (miningweekly.com) – Vancouver-based Nevsun Resources has achieved commercial production at its Bisha mine in Eritrea, and was able to complete the project “very substantially” below its capital cost estimate of around $260-million, CEO Cliff Davis said on Tuesday.

“I’d say it was at least five per cent below,” he said in an interview.

Nevsun poured the first gold at Bisha in December and has since ramped up the plant to average about 5 250 t/d over the last 30 days, with a peak of 6 560 t/d. The operation produced around 40 000 oz of gold during the commissioning phase, and recoveries have been higher than planned, at an average of 89% over the last 30 days.

“We’re now producing over 1 000 oz per day, and because of our very low costs, we are making over a million dollars a day,” Davis told Mining Weekly Online.

To read the full article, please follow this link.

February 22, 2011

• Bisha Declares Commercial Production
• Commercial production achieved on schedule and under budget
• Producing over 1,000 ounces per day
• Produced 40,000 ounces of gold to date
• Recoveries higher than expected

VANCOUVER,BC – Nevsun Resources Ltd. (TSX:NSU / NYSE Amex:NSU) is very pleased to announce that the Bisha Mine in Eritrea has reached commercial production. Commercial production marks the completion of project development, commissioning and operational ramp-up of the mine and processing plant. The operation is currently producing gold at a rate in excess of 1,000 ounces per day.

The commissioning of the plant commenced in late October, with first gold pour in late December and a progressive ramp up thereafter. Plant throughput averaged approximately 5,250 tonnes per day over the last 30 days, with a peak of 6,560 tonnes per day, well above schedule.

Recoveries are also higher than planned, averaging 89% over the last 30 days. During the commissioning phase, Bisha has produced approximately 40,000 ounces of gold.

Nevsun’s President Cliff Davis states “We are very pleased to bring this spectacular deposit into production and under budget. Our success can be attributed to our staff, contractors and the unwavering support of the Government of Eritrea.

The State has understood from the beginning that responsible development of the mining industry has the potential to be a significant economic catalyst to the State of Eritrea over the next several years.”

Commercial production was defined as >90% of planned throughput and >90% of planned recoveries for a period of >30 days.

As announced in the Company’s news release dated January 27, 2011, the Company’s independent engineer is currently working on a re-statement of reserves for the Bisha deposit and anticipates this will be available before the end of this quarter.

Forward Looking Statements: The above contains forward-looking statements concerning development and operating progress. 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”

Cliff T. Davis

President & Chief Executive Officer

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

For Investor Relations Contact:

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.

Below a picture of Nevsun’s first Gold Bars made in Eritrea.

[wikichart align="right" ticker="AMEX:NSU" showannotations="true" livequote="true" startdate="25-12-2010" enddate="25-06-2011" width="300" height="245"]

Peter Grandich the founder of Grandich.com and Grandich Publications, LCC and editor of the The Grandich Letter which was first published in 1984 explains in the Prospector Magazin if Sunridge is to follow in the footsteps of Nevsun.

The mining industry is apparently focusing hard on Eritrea again and Sunridge Gold is now positioned to be the next company to push towards production.

Sunridge’s peer company, Nevsun Resources is currently building the first modern mine in Eritrea and is nearing completion of the Bisha gold-copper-zinc VMS project. The mine construction is on schedule and the first gold pour is now expected before the end of 2010. Nevsun’s market cap is now approximately $1.17 billion.

Also, further attention was brought to the region recently by the announced Citadel takeover by Equinox for $1.25 billion. The Valuation was primarily based on the Jabal Sayis Mine in Saudi Arabia, which compares very similar in terms of production numbers to that of Sunridge’s Emba Derho deposit. Although Jabel Sayis is further along in development, the price tag further demonstrates the potential upside in Sunridge’s value.

Sunridge compares favorably to both Nevsun’s valuation and the Citadel deal as Sunridge has larger resources and the current market valuation is still only $160 million. Sunridge has recently raised $26 million and now has over $30 million to take its projects through feasibility.

Sunridge has successfully been exploring for gold and base metals on the Asmara Project in Eritrea since 2003 and has now defined three VMS deposits. Debarwa, Emba Derho, and Adi Nefas Deposits which contain an impressive combined NI 43-101 compliant Indicated Resources of:

• 1.28 billion pounds (580,000 tonnes) of copper,
• 2.5 billion pounds (1,130,000 tonnes) of zinc,
• 1.05 million ounces of gold, and
• 31.8 million ounces of silver

The Asmara Project also hosts a fourth prospect known as Gupo which contains an Inferred Resource of 189,000 ounces of gold.

The Asmara Project is approximately 800 square kilometers and is located around the capital city of Asmara. The project is located on excellent infrastructure, with paved roads and grid power over the property and the Port of Massawa is 120km away and accessible by both road and rail.

The Debarwa Deposit is located approximated 25 km south of Asmara and is currently the focus of a Feasibility Study which is expected to be complete in Q3 of 2011. Sunridge has awarded the engineering contract for the feasibility study to Senet who is a logical choice as they are currently managing the building of Nevsun’s Bisha mine in Western Eritrea.

Debarwa is made up of an oxide gold “cap” consisting of an estimated 2.44 million tonnes at an average grade of 1.71 g/t gold. Below the oxide zone the deposit contains a copper enriched supergene zone consisting of an estimated 1.336 million tonnes at an average grade of 5.36% copper with gold and silver. Underlying the supergene zone is the primary mineralized zone which is open in depth with current estimates of 699,000 tonnes at an average grade of 2.53% copper, 3.23% zinc and 0.87 g/t gold.

Debarwa DSO Zone: A high grade copper zone (greater than 15% copper) has been identified within the supergene zone. The feasibility study will examine options to begin mining operations at Debarwa by selectively mining the DSO (Direct Shipping Option) to a smelter thereby producing cash flow early in the mine life during construction of a process plant facility.

The Northern Deposits consist of the large Emba Derho copper – gold – zinc VMS deposit and 2 satellite deposits – Adi Nefas and Gupo Gold. The Northern Deposits are located approximately 15 km north of Asmara and are all within 6 km of each other.

A positive scoping study was completed in June 2009 at the Emba Derho deposit which contains a NI 43-101 compliant Indicated Resource of 62.5 million tonnes, containing 996 million pounds of copper, 1,907 million pounds of zinc and 574,000 ounces of gold and 20 million ounces of silver.

The Scoping Study provided a base case analysis and yielded an NPV of US$323.8.9 million and an Internal Rate of Return of 27.7% when applying the two year moving average of metal prices prior to June 2009.

Sunridge management feels the Scoping study at Emba Derho is far from optimized and the will be demonstrated in prefeasibility studies, which are expected to begin before the end of 2010, will include Adi Nefas, and Gupo Gold.

Adi Nefas has an Indicated Resource of 2.73 million tonnes at 1.39% copper, 8.38% zinc, 2.85 g/t gold, and 99.3 g/t silver. The feasibility study will also include the gold oxide cap at Emba Derrho which contains 95,000 oz of gold at 0.84 g/t which was treated as waste in the scoping study.

The feasibility study will also examine a steeper pit slope and the use of a dense media separation (DMS) circuit to remove 20% of internal waste material that would otherwise would be sent through the plant as ore.

Exploration: Sunridge is about to begin a drill program at the Gupo Gold deposit and the Medrizien gold target. Gupo currently has an inferred resource containing 189,000 oz of gold averaging 2.99 g/t and the objective of the program is to expand and convert to an indicated category resource. The Medrizien target is within 1 km from Emba Derho and consists of a gold mineralized zone that has been mapped at surface up to 25 meters in width and several km along strike.

Sunridge management also expects to announce expansion drilling at Adi Nefas and Debarwa and is planning extensive drill programs on new high priority VMS targets in 2011.

Sunridge also has a VMS exploration project in Madagascar called Besakoa which has demonstrated strong geological similarities to the VMS deposits on the Asmara Project and the Bisha deposit. An initial exploration drill program is being planned for spring 2011.

I think it’s time to start calling Sunridge Gold the next possible Nevsun.

http://www.theprospectornews.com/weekly_1115_02.php

VANCOUVER, BC – Nevsun Resources Ltd. (TSX:NSU) (NYSE Amex:NSU) is pleased to announce the commencement of its Resource Expansion Drill Program announced in mid September. Drilling will test the extent of mineralization in the hanging wall copper zone, which is immediately west and adjacent to the Bisha Main deposit. The program will also include infill drilling at Harena, which lies 9km SW of the Bisha Main deposit. With favorable results, both areas could add significant tonnage to the Company’s reserve, extending mine life and cash flow.

Nevsun anticipates at least 8,000m of diamond drilling, using two rigs over the next ten weeks. After which, results will be assessed and, if favorable, resource/reserve estimation will be initiated on Harena while drilling continues on the hanging wall.

Past drilling at Bisha identified appreciable amounts of relatively low-grade copper mineralization located up to several hundred meters into the hanging wall. Assays included 12.0m of 2.64% Cu (Hole B-370), 19.6m of 2.11% Cu (Hole B-369), 56.5m of 0.81% Cu (Hole B-335) and 31.5m of 0.76% Cu (Hole B-109). It is interpreted that this zone may extend for hundreds of meters in a north south direction. Although this mineralization 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 Nevsun’s third VMS near surface deposit on the Bisha licenses, followed up by infill drilling in 2009. Harena will be a likely source of supplemental feed for Bisha’s processing plant, which could provide valuable cash flow and prolong mine life.

Darin Wasylik, P.Geo., Sr. Geologist for Nevsun, a Qualified Person as defined by National Instrument 43-101, will oversee the drill program and has reviewed the technical contents of this release.

Forward Looking Statements: The above contains forward-looking statements concerning the objectives of the drill program and potential resource and reserve expansion. 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”

Cliff T. Davis

President & Chief Executive Officer

Nevsun Plant

VANCOUVER, BC – Nevsun Resources Ltd. (TSX:NSU)(NYSE Amex:NSU) has announced today that it met its target to commence plant commissioning at the Bisha Mine during Q4.

This significant milestone brings the Company one step closer to commercial production in Eritrea.

The power plant has been commissioned and is delivering power for the commissioning process. This process includes in depth testing of equipment and stress testing the plant before introducing ore. The Company intends to introduce low-grade ore in the coming month.

Bisha is on track for commercial gold production in Q1 2011. The current mine plan aims to produce 450,000 ounces of gold in the first year of commercial production at a cost of less than $250 per ounce.