SYDNEY (Dow Jones) — The Australian share market retreated from a five-day high Tuesday to close mixed despite a rise in offshore markets. Falls in financial and energy stocks offset gains in materials and consumer staples.

The benchmark S&P/ASX 200 closed down 5.3 points, or 0.1% at 4826.4. Trading volume was solid, after Monday’s technical glitch crimped activity.

According to Dow Jones Newswires technical analysis, the index has support from a weekly uptrend line at 4820.0 and minor resistance at 4880.0. The near-term target remains 5070.0, based on a bullish triangle pattern.

Overnight, the S&P 500 rose 0.6% on stronger-than-expected U.S. personal income and manufacturing data, as well as a stabilization in crude oil prices after Saudi Arabia and Kuwait said they could make up for any lost production in Libya.

In Asia, the Nikkei 225 was up 1.2% and the Shanghai Composite was up 0.8%. However, traders said geopolitical tensions in North Africa and the Middle East remained a constraining factor for the Australian equities market.

“The market is in limbo because there’s a fair bit of uncertainty on the geopolitical front,” said IG Markets Strategist Ben Potter. “While there wasn’t anything new in from the Middle East and North Africa overnight, you are not seeing money flow out of save-haven assets like oil and gold, so you are not seeing risk bets back on in a big way.”

In the financial sector, major banks fell 0.1%-1.1% and QBE Insurance fell 0.9% to A$17.98. Among materials, BHP Billiton and Rio Tinto rose 0.6% to A$46.37 and 0.5% to A$85.31, respectively, while Equinox Minerals fell 6.1% to A$5.84 after it made a US$4.9 billion hostile bid for Lundin Mining.

In mid-caps, Lynas Corp surged 8.2% to A$2.11 on an upbeat investor presentation. At the smaller end, CuDeco jumped 7.7% to A$3.49 after announcing that it had entered into a contract with China’s Sinosteel to supply the three-million-metric-ton-per-annum mineral processing plant for the Rocklands Group Copper Project near Cloncurry in Queensland state.

South Boulder Mines surged 9.3% to A$6.00 as its investor roadshow moved to Toronto, where the Potash prospect is presenting at the Prospectors & Developers Association of Canada.

Origin Energy fell 57 cents to A$16.13 after going ex-dividend 25 cents. Elsewhere in the sector, Santos fell 1.5% to A$14.13, although Nymex April crude oil futures were up 47 cents at US$97.44 in Asian trading.

Among consumer staples, Woolworths and Wesfarmers rose 0.6%-0.8%. February retail trade rose 0.4%, slightly above expectations, while Australia’s February manufacturing PMI rose above the 50.0 threshold for expansion of activity for the first time in the past six months. The data had no impact on the market.

The Reserve Bank of Australia left interest rates steady at 4.75%, as expected.

JPMorgan strategists said the Australian share market had demonstrated a “glass-half full” approach to companies facing cyclical challenges in the recent earnings period.

“It makes sense that investors are becoming more willing to look through cyclical challenges,” said the broker. “The soggy nature of the Australian economy is well known and the household savings rate is already high, providing something of a buffer against further deterioration.”

WSJ

South Boulder Mines commences trading after a news announcement that it upgrades its exploration target to 500 to 750 million tonnes of potash ores from the initial 300 to 500 million. More detailed reports on the new potash intersection are expected to be released in the coming days. The stock reacted with a daily gain of 9% and was the first time braking clearly the 3 AUD mark (3.39 AUD).

Chalice Gold Mines Limited (ASX: CHN) advises that in support of the Company’s application to list on the Toronto Stock Exchange it has completed a National Instrument 43-101 Technical Report on the Koka Gold Deposit. This report, prepared by AMC Consultants Pty Ltd, is appended to this announcement.

TIM GOYDER

Executive Chairman

Attachment: 43-101 Technical Report on the Koka Gold Deposit

About the Zara Gold Project

The Zara Project comprises four Exploration Licenses and two Prospecting Licenses covering an area of 615km2 situated in northern Eritrea, approximately 160km northwest of Asmara city. Chalice holds a 100% interest in the project subject to Eritrean government participation rights.

The Koka Gold Deposit within the project contains a Probable Reserve of 4.6 million tonnes of ore grading 5.1 grams of gold per tonne and containing 760,000 ozs of gold. This is contained within an Indicated Resource of 5.0 million tonnes grading 5.3 grams of gold per tonne containing 840,000 ozs of gold.

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:

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.

In case you haven’t heard, there’s a new mine going into production in a small African country called Eritrea. Nevsun Resources (TSX-NSU, AMEX-NSU) expects to commence production at a jaw-dropping rate of 431,000 ounces per year of gold and 702,000 ounces of silver. Financing is in place, construction has begun, and based on a recent property tour of the project, analysts around the world are falling all over each other in a hurry to recommend the stock.

GMP Securities (Griffiths McBurney) raised targets to CA$3.60 a share, with analyst Mark Smith summarizing as follows:

“We are upgrading our target price on Nevsun following a field visit to Eritrea, touring the VMS exploration projects and Nevsun’s Bisha mine. We have lowered our discount rate to 15% from 20% on the basis of our current view of political and development risk.

We believe Nevsun has a significant first mover advantage in Eritrea (with the development of Bisha) which we view is developing into a world class VMS district.

We value Nevsun using a 1.0x P/NAV to our NAV of C$3.60/shr (at 15%), up from previous NAV (at 20%) of C$2.99/shr. We derive a 12 month target of C$3.60, up from C$3.00. We rate the stock a BUY.”

Canaccord Adams mining analyst Steven Butler was even more bullish, raising his price target to CA$4.15 a share. He commented as follows:

Earlier this week, we visited Nevsun’s Bisha development project located in Eritrea, Africa. Our overall impressions of Eritrea were favourable. Senior local management of all the companies reported on the government’s principled and involved commitment to a successful mining industry in the country. The Bisha project also showed well; overall completion is estimated at 34% as of the end of August.

(The impact on Eritrea is) positive, from both the point of view of the country and the project. Bisha is “hot in more ways than one”; temperatures were north of 40 degrees and the deposit’s reserve grades are absolutely stellar (highlighting 8 g/t Au in oxides, 4.4% Cu in supergene).

Nevsun’s shares continue to trade at a deep discount to NAV (P/NAV multiple of 0.49 times our 12.5%/spot gold NAV or only 0.32 times our 5%/spot gold NAV) and only 1.8 times cash flow based on the first three year average. Our target price has been revised to C$4.15 (from $2.60), reflecting 1 times (previously 0.6 times) our revised 12.5% NAV of US$3.73, adjusted for a US$0.90/C$ fx rate. We maintain our SPECULATIVE BUY rating on the shares.”

Nevsun is a gold and base metal developer focused on the completion and production of the Bisha Mine in Eritrea, Africa. The Bisha Project is a high-grade gold, copper and zinc deposit in a newly discovered VMS district of Western Eritrea. Nevsun began construction of the Bisha Mine in September 2008 and is actively engaged in its development with production anticipated in fall 2010.

At current metal prices, the Bisha Project has a projected 2.5-year payback including debt and further mine expansion. The Bisha Mine will be a low-cost gold producer for the first two years and a low-cost, high-grade copper and zinc producer for the remaining life of the mine.

Life of Mine Projected net cash flow per year is projected at over ~$180M per year making this one of the most robust mines in the world being built right now.

Nevsun has received substantial financial and other support from the Eritrean government, with in excess of $300 million being made available to the company from both the Eritrean and South African financial communities.

The company has also completed negotiations on sales contracts for life of mine production.

The Bisha Mine is expected to begin production in the fall of 2010, with a projected 10 year mine life. Bisha’s gold will be refined in Switzerland and Canada by two major international companies while the copper concentrate will be shipped to major smelters in Europe and India.

Metal production within the first two years is estimated at approximately 900,000 ounces of payable gold, followed by over 500,000,000 pounds of payable copper in years 3-5, plus in years 5-10 an additional 1 billion pounds of payable zinc and 200,000,000 pounds of copper.

As a result of very high grade gold ore, the expected $200 per ounce operating costs are much lower than industry averages and accordingly the mine will generate significant cash flow for the Company and the Government of Eritrea. The resulting cash flow should enable Nevsun to quickly pay off project debt, allow for mine expansion and provide significant returns to shareholders.

There would appear to be a lot of upside left in the company shares considering its bright production future. Source: (MidasLetter)