Nevsun Resources (TSX: NSU) produced 101,000 ounces of gold for the quarter (Q4) ending December 31, 2011, at its Bisha mine in Eritrea. Year-to-date, Bisha Mine produced 379,000 ounce of gold, including 35,000 ounces during the commissioning. Cash increased to US $347 million at December 31, 2011, which is a 52% increase from the end of the September quarter (Q3).
It is believed that the State of Eritrea has also cashed in more than $170-million in revenue from its 10% free carried interest, 5% royalty and 38% corporate tax alone. Any cash that would otherwise be paid to the state for its 30% stake will keep going to Nevsun’s coffer until the purchase price of $253.5-million been paid in full through after-tax cash flows.
The best quarter of the year in terms of gold output was the third quarter in which Nevsun pumped out 110,000 ounces gold by milling 446,000 tonnes ore. In comparison Nevsun recovered the fourth quarter’s 101,000 ounces gold from 455,000 tonnes of ore.
The TSX- and Amex-listed company, Nevsun, said construction for a second-phase copper plant at Bisha started in June 2011 with ongoing civil work and equipment delivery. The South African EPCM contractor for the copper phase, SENET, and the Eritrean construction company, SEGEN, are taking part in the project as it advances to steel work and equipment installation this year.
The copper plant start-up is set for the first half of 2013.http://www.tesfanews.net/archives/6097