Bisha: Untapped Exploration Potential
Bisha: Untapped Exploration Potential TSX: NSU | NYSE MKT: NSU JUNE 2015 Bisha: untapped exploration potential Delivering organic growth through the drill bit VMS deposits commonly form in “Districts” or “Camps” VMS deposits well understood and exploration techniques well established Re-started greenfield exploration in 2014 after a decade of development Many deposits with hundreds of millions of tonnes Bisha licenses are District in scale Successful 2014 program added a new discovery and 7MT of high-grade resources at Harena; still open Aggressive 2015 exploration program underway with early success further extending Harena; work continues Bisha District remains underexplored with potential for significant additional tonnage and deposits 2 District scale license position More VMS deposits and tonnage likely Potential to increase Bisha District VMS tonnage through Extending current deposit tonnage at depth and on-strike Adding new district deposits; just 4 to-date VMS DISTRICT DEPOSIT SIZE & DISTRIBUTION Open District Mine 5 km Noranda District Flin Flon District Bisha District 25 deposits 18 deposits >200Mt >180Mt just 4 deposits * 1 VMS = Volcanogenic Massive Sulphide * 58Mt to-date Scale *Total MI&I resources (current plus mined) for district deposits Source: Sangster, Quantitative characteristics of VMSs and Company data 3 Bisha District under-explored Drilling resource development focused until 2014 Nevsun Eritrean exploration starts 1998 DIAMOND DRILL HOLES (DDH) BISHA, HARENA AND MOGORAIB 2002 Bisha discovery hole drilled Bisha Main resource development 2004 2006 Bisha feasibility completed Development Exploration 2008 Resource development for known mineralization at Harena, Northwest Zone and Hambok Focus switches to new discoveries 2010 2012 2014 0 50 100 150 4 Bisha district under-explored Similar mature Districts have far more drilling FLIN FLON, CANADA 2,769 drill holes BISHA, ERITREA ~900 drill holes Bisha Mining License * MAPS AT SAME SCALE * Harena Mining License 5 VMS deposits well understood Exploration techniques based on morphology and well established TYPICAL VMS MORPHOLOGY Trace favorable time horizons and contacts with felsic volcanic rocks Lithogeochemistry to assess alteration Airborne and down-hole electromagnetics (conductivity) to target drilling on copper sulphides Exhalite or Favourable Time Horizon High Zinc High Copper Massive Sulphide Metal Zonation Highly Conductive (Copper) Mineral Alteration Sea Water Copper & Gold Stringer Volcanic Rocks Source: Lydon, Ore Deposit Models: Volcanogenic Massive Sulphide Deposits. Part 2: Genetic Models. 6 1 VMS = Volcanogenic Massive Sulphide Borehole TEM Standard VMS exploration methodology – EM and lithogeochemistry TEM = Transient electromagnetics EM = electromagnetics 7 Bisha District Growth Resource development delivered growth until 2014 Exploration focused on known deposits thru 2013, delivering significant resource and reserve growth In 2014 switched to greenfield exploration, discovering new deposit at Aderat and adding 7MT of greenfield resource at Harena BISHA RESERVE LIFE +50% BISHA DISTRICT RESOURCES 60 15 Mt Inferred +65% M&I Resources 50 Mine Life, years 10 Reserve 40 30 5 20 Reserve Depletion 0 Startup Dec 2014 10 0 Feasibility Jan 2011 Jul 2012 Dec 2013 Current resources (effective date Dec 31, 2014) detailed in news release dated Feb 3 2015 Current reserves (effective date Dec 31, 2013) detailed in news release dated Feb 18 2014 and the supporting 43-101 report Dec 2014 8 Bisha District Licenses NORTH Strategic District scale license position Camp NW Zone Bisha Mining License1 Favourable Horizon Felsic Volcanic Exploration Targets Plant Bisha Main Bisha Licenses Current Resource Map scale is approximate Ashelli Aderat Hambok Takewuda Harena Harena Mining License Mogoraib River Exploration License 1 Dotted line represents Mining Agreement area. Bisha has exploration rights on this area. 9 2015 Exploration Objectives 1. Expand and upgrade resource at Harena Early success with wide, high-grade intercepts in step-out holes HX-50 and HX-51 See following section for more… 2. Drill high priority targets at depth and on strike from Bisha Main 3. Continue testing high priority targets on the Mogoraib River exploration license Budget: ≈$15 million Increased from $10 million ≈35,000 m of diamond drilling Future: Nevsun expects BMSC will continue to fund significant exploration programs on a success basis 10 Harena Mining License 11 Harena down dip expansion In 2013, recognized highly altered rhyolite footwall indicative of larger VMS system (top) 2014 drilling discovered major southern extension Right: Southern Extension Discovery Hole HX-005, May 2014 12 Harena extension drilling Currently drilling resource extension targets defined in 2014 Down-hole geophysics indicates extensions of 2014 resource probable First results extended high grade mineralization in upper and lower massive sulphide zones Additional high grade gold zone in stringers More work ongoing in 2015 For summary of 2014 Harena results see December 17, 2014 news release and recent 2015 results April 28, 2015. Harena resource statement (red in figure) is described in the 2014 Annual Information Form (AIF) Harena Pit HX-039 HX-044 HX-047 Core of Strong Mineralization HX-049 HX-043 HX-051 HX-050 HX-050: 1.7% Cu, 6.6% Zn, 0.4g/t Au, 28g/t Ag over 67m 4.6% Cu, 3.4% Zn, 1.0g/t Au, 63g/t Ag over 22m, and 0.2% Cu, 8.2% Zn, 0.1g/t Au, 10g/t Ag over 45m including HX-051: 1.1% Cu, 3.6% Zn, 0.4g/t Au, 22g/t Ag over 74m including 4.2% Cu, 1.2% Zn, 1.0g/t Au, 62g/t Ag over 11m 13 Harena extension drilling cont’d Lower zone massive sulphide widened and extended with Hole HX-050 and HX-051 Extends lower zone mineralization 120m down plunge, beyond current resource Increasing grade and widening Open at depth For Section A-A and detailed results see new release dated April 28, 2015. 14 Harena extension drilling cont’d Current Mineralization Outline Harena Gravity Anomaly High potential for further growth Gravity anomaly suggests further expansion to the south likely Aligns with down hole EM results (see long section on earlier slide) Further drilling to test to depth in 2015 15 Bisha Mining License 16 Bisha Mining License targets Large number of near-mine targets remain 2014 VTEM Survey Conductance Map 2015 work focused on Bisha at depth and high priority EM target at Guardian Hill Results will feed into ongoing life-of-mine optimization work by SRK Bisha NW Zone Extension Considerable Number of Untested EM Anomalies Little Guardian Hill Anomaly Bisha NW Gap Guardian Hill Anomaly South Bisha Anomaly Future Target 2015 Target Drill Hole Bisha Harena Gap 17 Untested near-mine anomalies Being tested for resource extensions Re-interpreted historical geophysical data and testing all current holes with down-hole EM Yielding large number of targets or “plates” 2015 work testing high priority targets Guardian Hill near surface; being tested Section B-B for supergene copper extensions Bisha Plan with Borehole EM Interpretations (Plates) Guardian Hill Anomaly (see following slide for more) South Bisha being tested for primary copper-zinc extension at depth South Bisha Anomaly South Bisha Anomaly B B (see following slide for more) 18 South Bisha Anomaly (Longitudinal) Being tested for primary Zn-Cu resource extensions Assays Pending South Bisha Anomaly Assays Pending Assays Pending Assays Pending 100 m N 19 Guardian Hill Anomaly Near surface EM anomaly targeting supergene Cu UNTESTED GEOPHYSICAL “PLATE” BENEATH GUARDIAN HILL S Looking West Footwall N Looking South 20 Considerable number of other untested EM anomalies %Zn-Ag BX-001 0.33 2.9g/ 67m %Zn - Ag Numerous untested VTEM and Transient EM anomalies west of the mine BX-001 targeting a large Transient EM anomaly encountered felsic volcanics with highly anomalous Zn 21 Mogoraib River License Mogaraib River License Targets Aderat 2014 VTEM MAP 2014 VTEM survey tightened coverage to 100 m line spacing better defining anomalies VTEM detection depth ~ 100 Hambok Few holes outside of Hambok and Aderat 2015 work targeting new discoveries at Asheli and Takewuda Future Target Asheli Drill Hole Takewuda Significant VTEM Anomaly 2015 Target Mogoraib River License 23 Asheli NEW GREENFIELD DISCOVERY Right: Asheli Plan Map Formational Conductor Axis Gold-rich Gossan ~ 3 g/t Au Footwall Alteration MX Holes = BMSC 2015 Au Gossan ASD Holes = Sanu 2005 2007 Proposed Holes 100 m 24 Asheli Cont’d Hole MX-044 Zn – Cu Rich Massive Sulphide from 202.3–208.3m = 6.0 m Sphalerite band within pyrite matrix Assays pending… Pyrite + Chalcopyrite Sphalerite 25 Asheli cont’d South Asheli Host Rock Rhyolite fragmental breccia identical to the host rock of many large VMS deposits ASHELI SOUTH FLIN FLON TROUT LAKE HOST ROCK 26 Takewuda NUMEROUS UNTESTED VTEM ANOMALIES ASSOCIATED WITH ALTERED FELSIC VOLCANIC ROCKS Sericite – chlorite schist identical to Guardian Hill overlooking Bisha pit 27 2015 Exploration Objectives 1. Expand and upgrade resource at Harena Early success with wide, high-grade intercepts in step-out holes HX-50 and HX-51 See following section for more… 2. Drill high priority targets at depth and on strike from Bisha Main 3. Continue testing high priority targets on the Mogoraib River exploration license Budget: ≈$15 million Increased from $10 million ≈35,000 m of diamond drilling Future: Nevsun expects BMSC will continue to fund significant exploration programs on a success basis 28 Forward Looking Statements This Presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation concerning anticipated developments on the Company's continuing and future operations in Eritrea, the adequacy of the Company’s financial resources and financial projections. Forward-looking statements include, but are not limited to, statements concerning or the assumptions related to estimates of capital and operating costs, the timing, nature and extent of future copper, zinc and gold production, expanding exploration licenses, the estimation of mineral reserves and resources, methodologies and models used to prepare resource and reserve estimates, the realization of mineral reserve estimates, the conversion of mineral properties to reserves and resources, the potential to expand resources, reserves and mine life, future exploration budgets, plans, targets and work programs, capital expenditures and objectives, anticipated timing of grant of permits, mining and development plans and activities, construction and production targets and timetables, grades, processing rates, life of mine, net cash flows, metal prices, exchange rates, reclamation costs, results of drill programs, dividend plans and policy, litigation matters, integration or expansion of operations, requirements for additional capital, government regulation of mining operations, environmental risks, political risks and uncertainties, unanticipated reclamation expenses, and other events or conditions that may occur in the future. Forward-looking statements are frequently, but not always, identified by words such as "expects," "anticipates," "believes," "intends," "estimated," "potential," "possible", "budget" and similar expressions, or statements that events, conditions or results "will," "may," "could" or "should" occur or be achieved. Information concerning the interpretation of drill results and mineral resource and mineral reserve estimates also may be deemed to be forward-looking statements, as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed, and in the case of mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forwardlooking statements in the future, except as required by law. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. For the reasons set forth above, investors should not place undue reliance on forward-looking statements. Please see the Company’s Annual Information Form and Management Discussion and Analysis of Nevsun for a more complete discussion of the risk factors associated with our business which have been filed with Canadian securities regulators and are available at www.sedar.com, which have also been filed or submitted to the U.S. Securities and Exchange Commission on Form 40-F or Form 6-K and are available at www.sec.gov. 29 INVESTOR RELATIONS +1 604-684-6730 T O L L F R E E : 1-866-684-6730 EMAIL: NSU@kincommunications.com WEB: www.nevsun.com TEL: TSX: NSU | NYSE MKT: NSU
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