Nevsun Resources announced that the Timok Upper Zone National Instrument 43-101 pre-feasibility study (“PFS”) technical report has been filed and is available for review under the Company’s profile on SEDAR at www.sedar.com, on EDGAR at www.sec.gov and on the Company’s website at www.nevsun.com.
The Timok Upper Zone is one of the best undeveloped copper projects globally. The recently released pre-feasibility study results demonstrate the project’s sector-leading returns with an after-tax NAV8% of $1.8 billion and IRR of 80% at $3.15 per pound copper. The Company announced receipt of the exploration decline permit in February and construction will commence in early June.
Resource calculations are underway following completion of the $20 millionTimok Lower Zone drill program which highlighted the deposit’s significant scale and impressive grades. The initial resource will be released in mid-2018 and is expected to demonstrate the potential addition of a world scale copper-gold porphyry to Nevsun’s Serbian portfolio of assets.
Nevsun Resources Ltd. is the 100% owner of the high-grade copper-gold Timok Upper Zone and 60.4% owner of the Timok Lower Zone in Serbia. The Timok Lower Zone is a partnership with Freeport-McMoRan Exploration Corporation (“Freeport”) which currently owns 39.6% and upon completion of any feasibility study (on the Upper or Lower Zone), Nevsun Resources Ltd. will own 46% and Freeport will own 54%. Nevsun generates cash flow from its 60% owned copper-zinc Bisha Mine in Eritrea. Nevsun is well positioned with a strong debt-free balance sheet to grow shareholder value through advancing Timok to production.