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September 2016
MODERN MINING
7
MINING News
Nevsun Resources has sold and shipped
the first zinc concentrate product from the
Bisha mine in Eritrea. The 10 000-tonne
lot was loaded at the Port of Massawa
and sailed on September 7, 2016. The
concentrate was sold on the spot market,
attracting multiple offers and highly com-
petitive treatment charges.
The Bisha mine completed the zinc flo-
tation plant expansion earlier in 2016 on
time and under budget. The plant allows
Bisha to produce separate copper and zinc
concentrates simultaneously fromprocess-
ing primary ore from the Bisha open-pit
mine.
Cliff Davis, Nevsun’s Chief Executive
Officer, commented, “We are pleased to
have a high quality zinc product com-
ing to market in an environment of rising
zinc prices. Bisha is the only significant
new zinc concentrate coming to market
in 2016 and we are being aggressively
courted for offtake by various custom-
ers. We would like to congratulate our
partner, the State of Eritrea, for adding
another export product to the economy
View of the Bisha site. Starting from the left of the photo and moving towards the centre, the concentrate storage, filtration, thickening and flotation sections of the
zinc flotation plant expansion can be seen (photo: Nevsun).
Nevsun Resources ships first zinc concentrate from Bisha
and thank them for their support.”
Nevsun is scheduled to load additional
shipments in the coming weeks and is
ramping up to commercial production
which is forecast for Q4 2016.
Nevsun, listed on the TSX and NYSE
MKT, is the 60 %-owner of Bisha, which was
constructed between 2008 and 2010. The
mine is located 150 km west of Asmara.
It has nine years of reserve life, generat-
ing revenue from both copper and zinc
concentrates containing gold and silver
by-products.
Endeavour makes “excellent progress” at Houndé
TSX-listed gold producer Endeavour Mining
says that excellent progress is being made
at its Houndé gold project in Burkina Faso.
Construction is progressing on time and on
budget, with the first gold pour expected
during the fourth quarter of 2017.
Jeremy Langford, EVP Construction
Services Group of Endeavour, stated:
“We are very pleased to have successfully
achieved our first set of key project mile-
stones safely, ahead of schedule and on
budget, despite the wet season being upon
us. Our employment statistics are extremely
pleasing with over 96 % of our 1 058 proj-
ect staff and contractors being Burkinabe
nationals. I am proud that this project will
deliver significant economic benefits to the
local area and the whole of Burkina Faso, in
addition to becoming Endeavour’s flagship
operating mine.”
Procurement is approximately 45 %
complete, with total capital commitments
amounting to US$150 million. The CIL ring
beam concrete pour was achieved early-
August, two weeks ahead of schedule, and,
as of 6 September, all six ring beams had
been completed.
The water harvest dam has been con-
structed, with water already being pumped
to the water storage dam, two months
ahead of schedule, while the 300-person
permanent accommodation village is on
schedule for completion during Q1-2017.
A mining fleet equipment financing
agreement has been signed with Komatsu
with deliveries already on-site, and machin-
ery commissioned and operational.
Following the signing of the power off-
take agreement with Sonabel, the national
electricity provider, procurement has been
completed for the 38 km, 91 kV overhead
power line with construction scheduled to
start in October 2016.
The site has maintained a strong safety
record with over 400 000 man-hours
worked without a Lost Time Injury (LTI) or
Medical Treatment Injury (MTI).
Once in production, Houndé will
become Endeavour’s flagship low-cost
mine, ranking amongst West Africa’s top
tier cash generating mines, with an average
annual production of 190 000 ounces at an
All-In Sustaining Cost (AISC) of US$709/oz
over an initial 10-year mine life based on
reserves. In the mine’s first four years, the
average annual production is expected to
be 235 000 ounces at an AISC of US$610/oz.
The project is an open-pit mine with a
3,0 Mt/a gravity circuit/CIL plant. The initial
capital cost is estimated at US$328 million,
inclusive of US$46 million for the owner-
mining fleet.
Endeavour operates mines in Côte
d’Ivoire (Agbaou and Ity), Burkina Faso
(Karma), Mali (Tabakoto), and Ghana
(Nzema). In 2016, it expects to produce
between 575 koz and 610 koz at an AISC of
US$870 to US$920/oz.