Upload
nevsun-resources-ltd
View
14.472
Download
0
Embed Size (px)
Citation preview
Bisha: Untapped Exploration PotentialTSX: NSU | NYSE MKT: NSU July 2016
Bisha: untapped exploration potentialDelivering organic growth through the drill bit
VMS deposits commonly form in “Districts” or “Camps” Bisha licenses are District in scale
VMS deposits well understood with established exploration techniques
Bisha District remains underexplored with potential for additional tonnage and deposits Re-started greenfield exploration in 2014 after a decade of development
Targeting both new deposits and extension of known deposits at depth and on-strike
Successful 2015 Regional Exploration Program Added a new discovery at Asheli
Continued to expand Harena; new expanded resource released Feb ‘16
2016 focus on expanding Bisha and Asheli; work to begin in Q1
2VMS = Volcanogenic Massive Sulphide
Potential to increase Bisha District VMS tonnage through Extending current deposit tonnage at depth and on-strike Adding new district deposits
3
Bisha District
6deposits
40Mt measured & indicated resource
Open
Noranda District
25 deposits
>200Mt*
V M S D I S T R I C T D E P O S I T S I Z E & D I S T R I B U T I O N
District scale license positionAggressive district exploration program in 2016
* Noranda and Flin Flon districts include many deposits that were discovered and mined prior to NI43-101 disclosure requirements and tonnages are estimates
Source: Sangster, Quantitative characteristics of VMSs and Company data
5 km Scale
District
Mine
Flin Flon District
18 deposits
>180Mt*
See news release dated Feb 3, 2015 for detailed resource tables and assumptions. Qualified person for resources is Phil Jankowski, (BMSC.)
T Y P I C A L V M S M O R P H O L O G Y
Source: Lydon, Ore Deposit Models: Volcanogenic Massive Sulphide Deposits. Part 2: Genetic Models.
Highly
Conductive
(Copper)
VMS deposits well understoodExploration techniques based on morphology and well established
Copper &
Gold Stringer
High
Copper
High
Zinc
Volcanic
Rocks
Sea Water
Exhalite or Favourable
Time Horizon
4
Massive
Sulphide
Metal
Zonation
Trace favorable time
horizons and contacts with felsic volcanic rocks
Lithogeochemistryto assess alteration
Airborne and down-hole electromagnetics (conductivity) to target drilling on copper sulphides
VMS = Volcanogenic Massive Sulphide
Mineral
Alteration
Standard VMS exploration methodology – EM and lithogeochemistry
5
Borehole TEM
(BTEM)
VMS = Volcanogenic Massive Sulphide TEM = Transient electromagnetics EM = electromagnetics
Current resources (effective Dec 31, 2015) detailed in news release dated Feb 17, 2016. Qualified person is Phil Jankowski (BMSC).Current reserves (effective Dec 31, 2014) detailed in 2014 AIF. Qualified person is Anoush Ebrahimi, Ph.D. at SRK Consulting 6
Depletion
Reserve
Reserve
0
5
10
15
Startup Dec 2014
Mine Life, years
B I S H A R E S E R V E L I F E +50%
0
10
20
30
40
50
60
Feasibility Jan 2011 Jul 2012 Dec 2013 Dec 2014 Dec-15
Inferred M&I ResourcesMt
B I S H A D I S T R I C T R E S O U R C E S +115%
Bisha District has track record of growthResource 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
Re-started exploration in 2014Bisha previously focused on development for over a decade
7
1998
2002
2004
2006
2008
2010
2012
2014
D I A M O N D D R I L L H O L E S ( D D H ) B I S H A , H A R E N A A N D M O G O R A I B
Nevsun Eritrean exploration starts
0 50 100 150
DevelopmentExploration
Focus switches to new discoveries
Bisha feasibility completed
Bisha discovery hole drilled
Bisha Main resource development
Resource development for known mineralization
at Harena, Northwest Zone and Hambok
2015 regional exploration successesSignificant resource growth at Harena and a new discovery at Asheli
8
Harena drilling continued to expand the resource at depth (resource update issued Feb ‘16)
New greenfield discovery at Asheli further highlights the potential for more deposits on the Mogoraib River License
Methodology of employing electromagnetic geophysics (EM) and focussing on defining and understanding the geology and alteration patterns proving effective
2016 Regional exploration program
2016 Objectives1. Harena: drill down dip following increasing thickness and grade with
depth and drill along strike of the deposit to the north and south. 2. Bisha Main: drill below the proposed ultimate open pit where the
deposit remains open3. Asheli: greenfield exploration will mainly target opportunities in the
Asheli area of the Mogoraib River exploration license, where a new massive sulphide deposit was discovered in 2015
2016 Budget: ≈$11 million ≈34,000 m of diamond drilling
Future: Nevsun expects BMSC will continue to fund significant exploration programs on a success basis
9
10
Northwest
Bisha Mine
Harena Mine
Hambok
Takewuda
Map scale is approximate
Bisha VMS districtCamp
NORTH
Plant
Asheli
Aderat
Shabayt
Current Mining Licenses
Mining Agreement Area
Tabakin Exploration License
New Mogoraib River Exploration License
Mines
Deposits
Showings
Favorable Trend
Felsic Volcanic
Harena Mining License
11
Right: Southern Extension Discovery Hole HX-005, May 2014
Harena down dip expansion
12
In 2013, recognized highly altered rhyolite footwall indicative of larger VMS system (top)
2014 drilling discovered major southern extension
Work in 2015 completed first pass drilling down to ~ 600 m depth
VMS = Volcanogenic Massive Sulphide
For summary of recent Harena results see December 1, 2015 news release. Harena resource statement (red in figure) is described in the 2014 Annual Information Form (AIF).
Deposit drilled to 600 m depth in 2015
Deposit still open at depth Zinc grades and widths
improving with depth 2015 internal underground
scoping study justifies continued work
12 km drilling budgeted in 2016
13
Harena extension drilling
HX-069:0.8% Cu, 5.0% Zn, 0.5g/t Au, 14g/t Ag over 115m, including
0.6% Cu, 10.2% Zn, 0.6g/t Au, 19g/t Ag over 40m
HX-071: 0.7% Cu, 7.9% Zn, 0.3g/t Au, 17g/t Ag over 50m, including
0.3% Cu, 10.2% Zn, 0.2g/t Au, 13g/t Ag over 36m
Additional high grade holes HX-050 and -051 (April 28, 2015 news release)
Coloured Rectangles
are the Geophysical
Plate Models
Derived From the
Boreholes BHEM
Planned 12km
2016 Drilling
Harena extension drilling cont’dMassive sulphides open at depth and remain thick
Increasing zinc and copper grades being encountered
Open to further expansion at depth Updated resource from 2015 drilling
issued Feb ‘16
For more sections and detailed results see news release dated December 1, 2015.
14
15
Massive Sulphides in hole HX-057 extending ~600 m depth
Harena extension drilling cont’d
15
16
Harena extension drilling cont’d
Deposit still open at depth
Also potential still remains along strike
Strong core of copper mineralization being defined that appears to be improving with depth
For a summary of recent Harena results see news releases dated: April 28, 2015, September 16, 2015 and December 1, 2015
Bisha Mining License
17
182014 VTEM Survey Conductance Map
Drill Hole
Bisha NW Zone
Extension Area
Considerable Number
of Untested EM
Anomalies
Bisha South
Bisha mining license targetsNumerous near-mine targets remain
2015 Target
2016 work to initially focus on Bisha South at depth
Bisha NW Gap
Bisha Harena Gap
EM = electromagnetics
Bisha south deposit (longitudinal)Testing for primary Zn-Cu resource extensions down dip
19
100 m
MogoraibRiver License
20
2014 VTEM survey tightened coverage to 100 m line spacing better defining anomalies
VTEM depth ~ 100m
21
Mogaraib River license targets
Drill Hole
Significant VTEM Anomaly
Future Target
2016 Target
Asheli
Hambok
Takewuda
Few holes outside of Hambok and Aderat
2015 work resulted in new discovery at Asheli
More work in 2016…
2 0 1 4 V T E M M A P
Mogoraib River License
Asheli Trend
Aderat
Hambok-Aderat
Trend
22
Asheli – 2015 greenfield discovery
Targeted on gold-rich gossan, EM and footwall alteration
High grade, thick, metal-rich massive sulphides intersections (see recent results below)
4km of untested strike length with similar geology
Currently drilling with two rigs in operation
EM = electromagnetics (geophysics)For Section B-B, plan map and detailed results see news release dated April 19, 2016.
MX-068: 2.0% Cu, 9.1% Zn, 0.4 g/t Au, 32 g/t Ag over 44m
MX-066: 2.4% Cu, 10.0% Zn, 0.3 g/t Au, 35 g/t Ag over 22m
MX-065: 2.1% Cu, 4.9% Zn, 0.5 g/t Au, 40 g/t Ag over 29m
Massive sulphide 20km from Bisha
For detailed results see news release dated April 19, 2016.
Asheli Cont’d
23
Massive Sphalerite33% Zn
143.8 –144.8m
Hole MX-056Zn – Cu Rich Massive Sulphide from 142.1–163.0m = 20.9 m
1.26% Cu – 6.08% Zn0.28g/t Au – 26g/t Ag
Banded Sphalerite
17.0% Zn144.8 –145.3m
Chalcopyrite6.0% Cu
146.0 –146.5 m
1.44% Cu – 7.64 % Zn152.5 –153.0m
For detailed results see news release dated June 18, 2015.
Aderat – 2014 greenfield discovery
24
High grade, metal-rich massive sulphides intersections
BHEM indicates steep SW plunge Alteration indicates larger system Open along strike and at depth Drilling in late 2015 continued to
intersect interesting alteration (assays pending)
Open
Massive sulphide 10km from Bisha
MX-011: 1.4% Cu, 7.8% Zn, 1.1 g/t Au, 26 g/t Ag over 10m
MX-012: 1.1% Cu, 11.1% Zn, 0.5 g/t Au, 19 g/t Ag over 9m
MX-016: 0.4% Cu, 4.8% Zn, 0.3 g/t Au, 6 g/t Ag over 10m
MX-017: 0.7% Cu, 3.7% Zn, 1.2 g/t Au, 20 g/t Ag over 5m
MX-012
0.79% Cu
6.99% Zn
0.38 g/t Au
14 g/t Ag
over 16.0 m
BHEM = borehole electromagnetics (geophysics) For sections, plan map and detailed results for MX-011 and -012 see news release dated June 16, 2014.
MX-011
MX-012
MX-017
MX-016
2015
DDH
Hambok – large massive sulphide
Discovered in 2006; drilled extensively through 2013 Very large pyritic massive sulphide deposit Indicated and inferred open pit resources1
No alteration zone or feeder system found (yet) Open along strike (north and south) and at depth
25
1 For details of open pit resources see news release Feb 3, 2015
Still looking for the feeder system – likely towards Aderat
Hambok-Aderat trend2016 and future targets
6km under-explored trend
Several untested target areas including: • Aderat South • Hambok extension north & south
4km of untested strike length Drilling to continue in 2016
Aderat Deposit
26
Hambok Deposit
2016 Target
Aderat South
Hambok North
Hambok South
Future Target
Takewuda 2016 target
27
Untested VTEM anomalies associated with altered felsic volcanic rocks
Sericite – chlorite schist identical to
Guardian Hill overlooking Bisha pit
Numerous untested VTEM anomalies
28
Bisha exploration team
Bisha exploration team with drill core from Asheli hole MX-052
Middle, back row (no hat): Peter Manojlovic – Nevsun VP Exploration
Not present: Rob Foy – Bisha Exploration Manager (yellow shirt on page15)
Forward Looking StatementsThis Presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadiansecurities legislation concerning anticipated developments on the Company's continuing and future operations in Eritrea, the adequacy of the Company’s financial resourcesand financial projections. Forward-looking statements include, but are not limited to, statements concerning or the assumptions related to estimates of capital and operatingcosts, 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 andresources, 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, andother 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 orbe achieved. Information concerning the interpretation of drill results and mineral resource and mineral reserve estimates also may be deemed to be forward-lookingstatements, 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 ofmineral 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 maydiffer materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors. Although the Company has attempted toidentify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that causeresults not to be as anticipated, estimated or intended. The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management onthe 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. There canbe 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 thereasons 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 withour business which have been filed with Canadian securities regulators and are available at www.sedar.com, and have also been filed or submitted to the U.S. Securities andExchange Commission on Form 40-F or Form 6-K and are available at www.sec.gov .
Except as otherwise noted herein, Peter Manojlovic, Vice President of Exploration and Frazer Bourchier, Chief Operating Officer, Qualified Persons as defined by NationalInstrument 43-101, have approved the scientific and technical information concerning Nevsun Resources Ltd. discussed herein.
29
TSX: NSU | NYSE MKT: NSU
I N V E S T O R R E L A T I O N S
T E L : +1 604-684-6730T O L L F R E E : 1-866-684-6730E M A I L : [email protected] E B : www.nevsun.com