Mr. Cliff Davis reports
NEVSUN Q1 2011 OPERATING HIGHLIGHTS
Nevsun Resources Ltd.'s Bisha mine in Eritrea processed 461,000 tonnes of ore yielding 75,000 ounces of gold in dore in the first quarter of 2011 during the same period it was ramping up to commercial production. Nevsun has accumulated significant cash during the first quarter, with a cash balance of $100-million as of March 31, 2011.
The Bisha mine continues to perform very well and is now producing over 1,000 ounces of gold per day. The associated table demonstrates the successful ramp-up to commercial production in January and February, and the first month of full operations in March.
January, 2011 February, 2011 March, 2011 Total first-quarter 2011
Preproduction(1) Production
Tonnes milled 126,000 160,000 175,000 461,000
Recovery, per cent of gold 86% 88% 89% 88%
Gold in dore, ounces 16,000 25,000 34,000 75,000
Gold price realized, per ounce n/a(2) $1,390 $1,430 $1,405
(1) For accounting purposes, sales from ounces produced prior to March 1,
2011, are considered preproduction and capitalized.
(2) No gold sales in January.
Nevsun's cash accumulation since Dec. 31, 2010, reflects ounces shipped and paid by the refiner to March 31, 2011. The last shipment in the quarter was March 28, 2011.
Full first-quarter results including costs and profitability are expected on or before May 11, 2011.
We seek Safe Harbor.
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