On 4 June 2018, Nevsun Resources (Nevsun) held a ceremony marking the start of construction of the exploration decline at its Timok Upper Zone (Cukaru Peki) project in Bor (Serbia).
According to Nevsun, a number of Serbian and international dignitaries attended the ceremony including the Prime Minister of the Republic of Serbia, Ana Brnabic; the Minister of Mining and Energy, Aleksandar Antic; the President of Bor Municipality, Aleksandar Milikic; 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 Antic, commented: "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, added: "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."
Timok (Cukaru Peki) Upper Zone update
Contracts for the portal preparation and decline development have been awarded. The contractor for portal preparation has mobilised to site and the approximate 8-week work programme 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 24 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.
As previously stated with our 1Q18 results, 100% 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. 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 tpa and ramp up to 3.2 million tpa. The company believes this option could save up to US$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.
In late May, regional drilling, focused on high grade Upper Zone style mineralisation, recommenced with three rigs mobilised. Drilling will initially be focused on the area identified in the January 16th release, 500 m to the east of the currently defined Upper Zone mineralisation, including hole TC170189 which returned 2.93% Cu and 2.54 g/t Au over 27 m.
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 Corp. As announced late March, the recently completed US$20 million drill programme 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.
Read the article online at: https://www.globalminingreview.com/exploration-development/07062018/nevsun-holds-ceremony-to-mark-advancement-of-timok-project/