Modern Mining September 2016

MINING News

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 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

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.

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. 

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

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

September 2016  MODERN MINING  7