Filed by Avantafile.com - Nevsun Resources Ltd. - Exhibit 99.1
June 5, 2018
Nevsun Breaks
Ground on Exploration Decline and
Provides Update
on the Timok Project
Vancouver, BC – Nevsun Resources Ltd. (TSX:NSU) (NYSE
AMERICAN: NSU) (“Nevsun” or the “Company”) is pleased to announce that a
ground breaking ceremony took place yesterday at the Timok Upper Zone (Cukaru
Peki) project in Bor, Serbia, commemorating the start of construction of the
exploration decline.
The ceremony was attended
by a number of Serbian and international dignitaries including the Prime
Minister of the Republic of Serbia, Ana Brnabić; the Minister of Mining
and Energy, Aleksandar Antić; the President of Bor Municipality, Aleksandar
Milikić; and the Ambassador of Canada to Serbia, H.E. Kati Csaba; as well
as members of Nevsun’s Board of Directors and Senior Management.
Serbia’s Minister of Mining
and Energy, Aleksandar Antić, said, “The Ministry of Mining and Energy
confirms its continued support to Nevsun and the Cukaru Peki project. We are
committed to supporting Nevsun as it rapidly advances the project toward
production.”
Nevsun’s
CEO, Peter Kukielski, said “Commencing construction of the exploration decline
on one of the world’s best undeveloped copper projects is a significant milestone
for the Company. Support from all levels of the Serbian government as well as local
stakeholders have been instrumental in helping achieve this historic event on
this world-leading project. We look forward to unlocking significantly more
value for our shareholders and stakeholders as we advance toward construction
of the Timok Upper Zone, a much-anticipated initial resource for the Lower Zone,
and ongoing regional exploration on our highly prospective land package.”
June 4, 2018:
Timok Upper Zone Ground Breaking Ceremony attended by Serbian and International
dignitaries as well as members of Nevsun’s Board of Directors and Senior
Management.
Timok
(Cukaru Peki) Upper Zone Update
Contracts for the portal
preparation and decline development have been awarded. The contractor for
portal preparation has mobilized to site and the approximate eight-week work
program has begun. Once preparation is complete, the decline contractor will construct
the portal and begin decline development. The project is expected to be
completed in approximately twenty-four months, including development of diamond
drilling platform bays at depth and a lateral drift into the high-grade portion
of the orebody for bulk sampling.
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As previously stated with
our Q1 2018 results, one hundred percent of the land required for the
development of the exploration decline and 63% of the private land required for
construction of the project has been acquired.
The feasibility study on the Upper Zone
remains on schedule for completion in mid-2019. The Company is in the process
of updating the PFS to further define parameters around the ramp up scenario
previously discussed in the March 28th PFS News Release. This scenario
focuses on de-risking the project by reducing initial capital and mill
throughput in the early years. Initial production would start at 1.6 million
tonnes per annum and ramp up to 3.2 million tonnes per annum. The Company
believes this option could save up to $100 million in up-front project capital.
The Company expects to release the results of this updated scenario in the
fall of 2018, if it becomes the basis of the full feasibility study.
Nevsun continues to engage with a wide
range of capital providers, including discussions with potential strategic
partners who are able to provide both capital and technical, political and/or
product offtake/marketing support.
Regional drilling, focused on high
grade Upper Zone style mineralization, has recommenced with three rigs mobilized
in late May. Drilling will initially be focused on the area identified in the January 16th release, 500 meters to the
east of the currently defined Upper Zone mineralization, including hole
TC170189 which returned 2.93% Cu and 2.54 g/t Au over 27 meters.
Timok
(Cukaru Peki) Lower Zone Update
The Company is nearing completion on
the work associated with the initial 43-101 compliant resource on the Timok
Lower Zone, a joint venture with Freeport-McMoRan Exploration Corporation. As
announced late March, the recently completed $20 million drill program continued
to demonstrate the potential world class nature of the deposit. A clearer
picture of value will emerge with the initial resource estimate to be released mid-year.
Forward Looking
Statements
The above contains
forward-looking statements or forward-looking information within the meaning of
the United States Private Securities Litigation Reform Act of 1995, and applicable
Canadian securities laws. All statements, other than statements of historical
facts, are forward looking statements including statements with respect to the
Timok Upper Zone Project in Serbia (the “Timok Project”). The Company also
cautions the reader that the PFS on the Timok Project that support the
technical feasibility or economic viability of the Timok Project, including the
marketability of the concentrate, mining method, costs, processing, metal
recoveries and any other technical aspects related to the Timok Project, are
preliminary in nature and there is no certainty that the PFS will be realized.
Forward-looking statements are frequently, but not always, identified by words
such as “expects”, “anticipates”, “believes”, “hopes”, “intends”, “estimated”,
“potential”, “possible” and similar expressions, or statements that events,
conditions or results “will”, “may”, “could” or “should” occur or be achieved.
Forward-looking statements are statements concerning the Company’s current
beliefs, plans, objectives and expectations about the future. The 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. These risks, uncertainties
and factors include general business, legal, economic, competitive, political,
regulatory and social uncertainties; actual results of exploration activities
and economic evaluations; fluctuations in currency exchange rates; changes in
project parameters; changes in costs, including labour, infrastructure,
operating and production costs; future prices of copper, gold, zinc, silver and
other minerals; resource estimates and variations of mineral grade or recovery
rates; operating or technical difficulties in connection with exploration; land
acquisition; mining method, production profile and mine plan; other development
or mining activities, including the failure of plant, equipment or processes to
operate as anticipated; performance on ore production and waste movement and
improvement in mining capability; delays in exploration, development and
construction activities including commencement of the decline construction as
planned; changes in government legislation and regulation; the ability to
maintain and renew existing licenses and permits and the ability to obtain
other required licences and permits in a timely manner or at all; the ability
to obtain financing on acceptable terms and in a timely manner or at all;
contests over title to properties; employee relations and shortages of skilled
personnel and contractors; the speculative nature of, and the risks involved
in, the exploration, development and mining business including, without
limitation, other risks that are more fully described in the Company’s Annual
Information Form for the fiscal year ended December 31, 2017 (the “AIF”) and
the Company’s management discussion and analysis for the fiscal year ended
December 31, 2017 (the “MD&A”), which are incorporated herein by reference.
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 forward-looking statements in the future, except as
required by law. For the reasons set forth above, investors should not place
undue reliance on the Company’s forward-looking statements.
Further information
concerning risks and uncertainties associated with these forward-looking
statements and our business can be found in our AIF and MD&A, which is
available on the Company’s website (www.nevsun.com), filed under our profile on
SEDAR (www.sedar.com) and on EDGAR (www.sec.gov) under cover of Form 40-F.
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About
Nevsun Resources Ltd.
Nevsun Resources Ltd. is the 100% owner of
the high-grade copper-gold Timok Upper Zone and 60.4% owner of the Timok Lower
Zone in Serbia. The Timok Lower Zone is a partnership with Freeport-McMoRan
Exploration Corporation (“Freeport”) which currently
owns 39.6% and upon completion of any feasibility study (on the Upper or Lower
Zone), Nevsun Resources Ltd. will own 46% and Freeport will own 54%. Nevsun
generates cash flow from its 60% owned copper-zinc Bisha Mine in Eritrea.
Nevsun is well positioned with a strong debt-free balance sheet to grow
shareholder value through advancing Timok to production.
NEVSUN RESOURCES LTD.
“Peter
Kukielski”
Peter Kukielski
President & Chief Executive Officer
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For further information, contact:
Heather Taylor
Nevsun
Investor Relations
Tel: +1 604 623 4700
Toll free: 1 888 600 2200
Email: htaylor@nevsun.com
Website:
www.nevsun.com
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