Nevsun Resources Ltd - News Release
Revised resource estimate at Tabakoto project
Nevsun Resources Ltd NSU
Shares issued 23,464,410 Aug 7 close $1.10
Mon 10 Aug 98 News Release
Dr. John Clarke reports
The company has received an updated independent resource estimate regarding
its Tabakoto project in western Mali. Total cut indicated resource ounces
have increased by 29 per cent from 1,060,000 ounces as announced in
Stockwatch on April 30, 1998, to 1,372,000 ounces of gold.
Resource - Cut
(3.0 g/t, 0.5 g/t)
tonnes g/t ounces
(millions) Au Au
Indicated -
Resource
Primary 5.6 7.46 1,340,000
Oxide 0.5 1.84 32,000
Total 6.1 1,372,000
Inferred -
Resource
Primary 2.1 7.64 505,000
Resource - Uncut
tonnes g/t ounces
(millions) Au Au
Indicated -
Resource
Primary 18.7 3.03 1,819,000
Oxide 1.0 1.08 33,000
Total 19.7 1,852,000
Inferred -
Resource
Primary 8.6 2.62 724,000
This revised resource estimate further enhances the opportunity for the
company to take the Tabakoto deposit forward to feasibility and eventual
mine development. An independent prefeasibility study has been completed
and submitted to the Government of the Republic of Mali.
UPDATE ON THE SEGALA AGREEMENT
As previously announced, the company entered into an agreement with
Consolidated Mining Corporation (West Africa) S.A., Trillion Resources and
Oliver Gold to acquire a 100 per cent interest (exclusive of the Government
of Mali's interest) in the Segala property contiguous to the company's
Tabakoto property in western Mali. The originally scheduled closing of the
agreement has been delayed to allow for the incorporation of an
exploitation company in Mali, the transfer to that company of the Segala
property and the final approvals of the Government of the Republic of Mali.
METHODOLOGY FOR THE TABAKOTO PROJECT
The above estimates are reported in accordance with Canadian Institute of
Mining, Metallurgy and Petroleum guidelines for estimating and classifying
resources, and do not include reserves. Only deposits categorized as
reserves have demonstrated economic viability. All resource calculation
work for Tabakoto was conducted and prepared by the independent geological
consulting firm, Pearson, Hofman & Associates Ltd. of Toronto, Ontario.
A block model was created for all the mineralized zones at Tabakoto. Blocks
were flagged with a different rock code for each zone. A specific gravity
of 2.75 was used for all blocks of primary material, while a specific
gravity of 1.85 was used for the oxide material. To avoid bias, the extreme
high assay values were cut to 60 g/t gold for the primary material and 20
g/t gold for the oxide material based on the 99th percentile of each
respective population.
The Tabakoto resource was estimated using the inverse distance method. The
search ellipsoid followed the general configuration of each zone and ranged
75 metres along strike, 20 metres across strike and 75 metres down dip. To
limit the influence of the high values (> 60 g/t), a smaller search
ellipsoid of 15 metres by 15 metres by 15 metres was used.
With respect to oxide resources, it has been interpreted that there is an
alluvial cap over the entire length of the Tabakoto deposit which averages
10-12 metres in thickness. Only that portion of the oxide resource
immediately overlying the primary mineralization has been included in the
above resource statement.
PHA has been involved in the verification of sampling and assaying for this
project. Personnel have been on site and have been directly involved in
selecting samples for establishing quality control. PHA is also aware that
third parties known as Analytical Solutions Ltd. and Taiga Consultants Ltd.
have carried out resampling, reassaying and check assaying work.
PHA is a wholly owned subsidiary of BLM Bharti Engineering Inc. BLME have
been actively involved in the study of the mineability and economic
potential of geological resources of the Tabakoto gold deposit.
BLME have acted as the general engineering consultant in the design and
formulation of feasibility study work for the Tabakoto project. BLME are
aware of third parties known as Lakefield Research Limited and GBM Minerals
Engineering Consultants Ltd., U.K. which have undertaken all metallurgical
testwork, analysis and process design aspects for the Tabakoto project.
BLME engineers have inspected the Tabakoto site, and have reviewed on a
prefeasibility level all economic, social and technical issues which could
influence the future development of the project. BLME are not aware at this
time of any such issues which could materially affect the resource estimate
made by PHA for the Tabakoto deposit. |
