Nevsun Resources (NYSEMKT:NSU) has announced more exploration results from the Harena zone at the Bisha project in Eritrea, Africa. These drill results are quite good with for instance 10.45 meters of 2.30% copper, 1.3g/t gold, 1.3oz/t silver and almost 1% zinc. Additionally, in another hole Nevsun encountered 18.5 meters of 2.5 ounces of silver per tonne, 1.77% copper, almost 4% zinc and 1.22g/t gold. These are very decent grades over a very decent interval.
What's important in this press release is that the Harena prospect seems to be shaping up like a potential new viable orebody, as it is located just six miles from the Bisha processing plant. Granted, the ore which is currently being processed at Bisha has a much higher average grade than what Harena consists of, but there are plenty of opportunities to either blend the Harena ore with the Bisha ore, or keep the Harena ore to extend the Bisha mine life after the copper and zinc zones will be mined out.
This is good news and of the 25,000 planned meters, 15,000 have already been drilled and it looks like the size of Harena is still growing. Additionally, the mineralization seems to be open in several directions and at depth which bodes well for the future. Nevsun remains one of the cheapest companies on an EV/EBITDA ratio in the entire mining industry.
Disclosure: The author is long NSU.
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