Nevsun also has secured property around the Wayside
discovery: Further confirmation that this is quite a
discovery.
Regards
Dan
Here is the release:
Nevsun Resources Ltd -
Nevsun to acquire property near Wells
Nevsun Resources Ltd
NSU
Shares issued 24,475,410
2000-04-18 close $0.37
Wednesday Apr 19 2000
Dr. John Clarke reports
Nevsun Resources has entered into an agreement to purchase an option to the
rights to the properties contained in the Warspite claims Nos. 1 to 8. The
Warspite property is located near Wells, B.C., approximately five kilometres
southeast of International Wayside's new high-grade gold discovery. Wells is
situated in the historic Barkerville gold mining district where previous recorded
gold production is over three million ounces.
International Wayside (Wayside) has outlined a one-million-ounce open-pittable
resource on which a feasibility study is under way. During recent drilling that was
targeted on a projected eastern extension of the known B.C. vein Wayside
discovered a new high-grade gold zone. The results to date contain some of the
highest grade intercepts in a new discovery in Canada since Hemlo or Eskay
Creek.
Earlier exploration (dating as far back as 1910) on the Warspite property has
consisted of trenching, shafts, adits and diamond drilling. Selected grades from
previous trenches are reported as being up to 24.9 grams per tonne gold across
8.5 metres, 10.0 grams per tonne gold across 4.1 metres and 31.1 grams per
tonne over 3.0 metres. All previous work and results have to be verified by
Nevsun's technical team. A detailed mapping, trenching and drill program is
required for the Warspite property.
Nevsun has an option to earn a 100-per-cent interest in the Warspite property by
carrying out a:
cash payment of $50,000 and the issuance of 150,000 shares/common stock of
Nevsun; and
work program of up to $200,000 on the properties within the first year following
closing of this agreement.
Nevsun may, at Nevsun's sole discretion, at any time prior to the close of the
work program or on the first anniversary of the closing of this agreement exercise
the option to purchase the property through two further issues of shares. The
second issue will comprise 150,000 shares/common stock of Nevsun to be issued
to the syndicate on the first anniversary of the closing of this agreement. The third
issue will comprise 150,000 shares of Nevsun to be issued to the sellers on the
second anniversary of the closing of this agreement. If the option is not exercised
all rights will revert to the sellers.
The sellers will retain the right to the payment of a net smelter return of 1 per cent
on production from the property to be paid annually in arrears from the operating
cash flow of the property should the property go into production. The net smelter
return may be purchased by Nevsun, at Nevsun's sole discretion, for a one off
payment of $1-million to the syndicate exercisable at any time during commercial
production from the property.
This agreement is subject to approval by the Toronto Stock Exchange and final
due diligence regarding title.
Drilling is now in progress at Nevsun's Tabakoto project in western Mali where a
diamond and reverse circulation drill program is under way. This program is
designed to delineate the extent of open pit resources at Tabakoto. A recent due
diligence study completed by Snowden Mining Industry Consultants indicated a
significant resource may be mined from the open pit at Tabakoto. The current
drilling is the first part of a two step program aimed at proving up the surface
resource at Tabakoto for the Tabakoto final feasibility study. |
