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To: gold$10k who wrote (1203)	1/27/2004 6:30:16 PM
From: Andrew	Read Replies (1) \| Respond to of 29622

Nevsun Resources Ltd (C-NSU) - News Release Nevsun restarts drilling at Bisha Main project Nevsun Resources Ltd NSU Shares issued 73,824,322 Jan 26 2004 close $ 4.60 Tuesday January 27 2004 News Release Dr. John Clarke reports NEVSUN RESOURCES LTD.: 30,000 METER DRILL PROGRAM UNDERWAY AT BISHA PROJECT, ERITREA Drilling at its Bisha Main high-grade gold/copper/zinc volcanogenic massive sulphide deposit (VMS) in Eritrea has restarted. Two diamond drills are currently operational and will be joined by a combination reverse-circulation drill in the next few weeks. The current program scheduled through to June comprises a minimum of 20,000 metres of diamond drilling and 10,000 metres of reverse-circulation drilling. The objectives of the current program are to: delineate the Bisha Main and Northwest zone deposits to a drill density that will allow a third party resource/reserve estimate; explore the direct southern extension of the Bisha Main deposit where a gravity anomaly was recently defined over an additional 2.0-kilometre strike length coincident with an airborne and ground EM anomaly; drill test a newly identified gravity anomaly coincident with a gold-base metal soil anomaly located to the southeast of the known Bisha Main massive sulphide; determine the extent of the gold in disseminated sulphides within the Northwest zone and determine the extent of the copper-bearing massive sulphide mineralization in this area; and commence the metallurgical, environmental, hydrological and geotechnical studies required for a feasibility study of the initial Bisha Main gold-copper discovery. Recent drill results (such as drill holes B-117 and B-121 reported in news issued in Stockwatch on Jan. 12, 2004) have indicated that the base metal component of the southern portion of the Bisha Main deposit is increasing in width and is open at depths beyond 200 metres vertical. The results from hole B-121 returned 66.6 metres averaging 9.1 per cent zinc and 0.94 per cent copper, and B-117 returned 81.9 metres averaging 1.62 per cent copper and 3.05 per cent zinc. Both intersections display significant precious metal credits. Additional drilling to depth is planned early in the current program to test the down-dip extent of the deposit. Drill results from the Northwest zone have indicated that there are significant gold values associated with disseminated sulphides that are proximal to the main Northwest massive sulphides zone. These disseminated sulphide intersections were reported in Stockwatch news dated Dec. 1, 2003, with hole B-75 returning 14.0 grams per tonne gold over 15.0 metres and B-70 averaging 14.3 grams per tonne gold over 3.0 metres. An additional disseminated mineralized zone to the west has returned 7.3 grams per tonne gold over 4.3 metres (B-70) and 6.7 grams per tonne over 4.5 metres (B-75). Additional drilling is planned to further delineate and extend these zones. Recent geophysical surveys (gravity and EM) and soil sample results from the southern end of the Bisha Main deposit indicate co-incident anomalies for at least 2.0 kilometres from the last drilling in this area (the 2.0 kilometres being the extent of the gravity survey to date). During the current campaign the gravity survey will be extended further south to cover the continuing EM anomaly. Exploration drilling will take place to test these anomalies in anticipation of expanding the mineralized zone to the south. A recent structural interpretation indicates that the southern portion of the Bisha Main and the Northwest zone may be directly related having been displaced by later faulting. A newly defined coincident gravity anomaly and gold-base metal soil anomaly located 1.6 kilometres to the southeast of the Bisha Main zone may be similarly related to the northern portion of the Bisha Main deposit. The geochemical anomaly covers a strike length of 1.0 kilometre and the coincident gravity anomaly, which lies at the edge of the gravity survey data collected to date, may have similar dimensions. This hypothesis of this newly defined zone having a relation with the Bisha Main will be drill tested once additional gravity work has been done to more accurately define specific drill sites. The additional gravity work will start immediately. The reverse-circulation drilling will concentrate on the near surface high-grade gold horizon and the underlying supergene copper horizon of the Bisha Main. It is anticipated that increased drill recoveries will assist in upgrading the gold and supergene copper resources. Preliminary metallurgical testwork is currently being carried out on the primary massive sulphide mineralization to get an initial concept of this material's amenability to be recovered using conventional processing methods. Past metallurgical work focused on the oxide gold and supergene copper mineralized zones. The resource statement originally scheduled for the first quarter of 2004 is scheduled for completion in the second quarter in order that sufficient data are accumulated to advance the statement to a feasibility level. Additional work with respect to specific gravity determinations and geotechnical measurements will be continued during the current program. Environmental studies and hydrological work will also being implemented in order that a feasibility study can be under way before the end of the year. A total of 146 diamond drill holes totalling 19,181 metres have been drilled at Bisha to date. The Bisha Main zone has been drilled over a strike length of 1,100 metres with massive sulphide mineralization being intersected to a vertical depth of 225 metres. Oxidation of the primary massive sulphides has developed a gold-enriched oxide layer from surface to a typical depth of 35 metres which overlies a further 30 metres of supergene copper-enriched massive sulphides. Within the underlying primary massive sulphides very significant copper and high-grade zinc zones have been recognized. Bill Nielsen, vice-president of exploration for Nevsun, a qualified person under National Instrument 43-101, supervised and directed all work associated with the drilling program. Nevsun implemented a QA/QC program, consisting of certified standards, for the drill program. The analytical methods used for gold and silver are fire assay with atomic absorption or gravimetric finish. Induced coupled plasma (ICP) is used for silver trace level values. The analytical methods used for the base metals are aqua-regia digestion and atomic absorption finish or ICP for trace level values. Sample preparation and analysis were conducted at ALS Chemex of Vancouver, Canada. John Clarke, president of Nevsun, states: "I am very pleased with the progress at Bisha to date. The overall aim of the current program is to bring the property to commercial production in as short a time frame as possible. It is envisaged that the first stages of production will come from the surface gold-bearing oxides and underlying near-surface supergene copper sulphides of the Bisha Main deposit. These could in turn provide future funding for the mining of the copper- and zinc-bearing primary sulphides." WARNING: The company relies upon litigation protection for "forward-looking" statements. (c) Copyright 2004 Canjex Publishing Ltd. stockwatch.com