Bisha: Untapped Exploration Potential. TSX: NSU NYSE MKT: NSU February 2016

Transcription

1 Bisha: Untapped Exploration Potential TSX: NSU NYSE MKT: NSU February 2016

2 Bisha: untapped exploration potential Delivering 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 focus on expanding Bisha and Asheli; work to begin in Q1 VMS = Volcanogenic Massive Sulphide 2

3 District scale license position Aggressive district exploration program in 2016 Potential to increase Bisha District VMS tonnage through Extending current deposit tonnage at depth and on-strike Adding new district deposits VMS DISTRICT DEPOSIT SIZE & DISTRIBUTION Open District Mine 5 km Scale Noranda District 25 deposits Flin Flon District 18 deposits Bisha District 4 deposits * Noranda and Flin Flon districts include many deposits that were discovered and mined prior to NI disclosure requirements and tonnages are estimates >200Mt * >180Mt * 40Mt measured & indicated resource Source: Sangster, Quantitative characteristics of VMSs and Company data See news release dated Feb 3, 2015 for detailed resource tables and assumptions. Qualified person for resources is Phil Jankowski, (BMSC.) 3

4 VMS deposits well understood Exploration techniques based on morphology and well established Trace favorable time horizons and contacts with felsic volcanic rocks Lithogeochemistry to assess alteration Airborne and down-hole electromagnetics (conductivity) to target drilling on copper sulphides Highly Conductive (Copper) TYPICAL VMS MORPHOLOGY Exhalite or Favourable Time Horizon Mineral Alteration High Zinc High Copper Copper & Gold Stringer Massive Sulphide Metal Zonation Source: Lydon, Ore Deposit Models: Volcanogenic Massive Sulphide Deposits. Part 2: Genetic Models. Sea Water Volcanic Rocks 4 VMS = Volcanogenic Massive Sulphide

5 Borehole TEM (BTEM) Standard VMS exploration methodology EM and lithogeochemistry VMS = Volcanogenic Massive Sulphide TEM = Transient electromagnetics EM = electromagnetics 5

6 Bisha District has track record of growth Resource 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 BISHA RESERVE LIFE +50% BISHA DISTRICT RESOURCES +115% Mt Inferred M&I Resources 50 Mine Life, years 10 Reserve Reserve 20 Depletion 10 0 Startup Dec Feasibility Jan 2011 Jul 2012 Dec 2013 Dec 2014 Dec-15 Current resources (effective Dec 31, 2015) detailed in news release dated Feb 17, 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

7 Re-started exploration in 2014 Bisha previously focused on development for over a decade Nevsun Eritrean exploration starts 1998 DIAMOND DRILL HOLES (DDH) BISHA, HARENA AND MOGORAIB Bisha discovery hole drilled Bisha Main resource development Bisha feasibility completed Resource development for known mineralization at Harena, Northwest Zone and Hambok Development Exploration Focus switches to new discoveries

8 2015 regional exploration successes Significant resource growth at Harena and a new discovery 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 8

9 2016 Regional exploration program 2016 Objectives 1. 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 open 3. 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 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 Bisha District Licenses Strategic District scale license position Favourable Horizon Felsic Volcanic Deposits Bisha Licenses Bisha Mining License 1 Camp Plant NW Zone Bisha Main Current Resource Asheli Aderat Hambok Mogoraib River Exploration License Harena Harena Mining License 1. Outer line represents Mining Agreement area; Bisha has exploration rights on this area. 10

11 Harena Mining License 11

12 Harena down dip expansion 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 Right: Southern Extension Discovery Hole HX-005, May

13 Harena extension drilling 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 Coloured Rectangles are the Geophysical Plate Models Derived From the Boreholes BHEM Planned 12km 2016 Drilling 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). 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) 13

14 Harena extension drilling cont d Massive 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,

15 Harena extension drilling cont d Massive Sulphides in hole HX- 057 extending ~600 m depth 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,

17 Bisha Mining License 17

18 Bisha mining license targets Numerous near-mine targets remain 2016 work to initially focus on Bisha South at depth Bisha NW Zone Extension Area Bisha NW Gap Considerable Number of Untested EM Anomalies Bisha South 2015 Target Bisha Harena Gap Drill Hole EM = electromagnetics 2014 VTEM Survey Conductance Map 18

19 Bisha south deposit (longitudinal) Testing for primary Zn-Cu resource extensions down dip 100 m 19

20 Mogoraib River License 20

21 Mogaraib River license targets 2014 VTEM survey tightened coverage to 100 m line spacing better defining anomalies VTEM depth ~ 100m 2014 VTEM MAP Asheli Hambok Aderat Hambok-Aderat Trend Few holes outside of Hambok and Aderat 2015 work resulted in new discovery at Asheli More work in 2016 Asheli Trend Takewuda Future Target 2016 Target Drill Hole Significant VTEM Anomaly Mogoraib River License 21

22 Asheli 2015 greenfield discovery Massive sulphide 20km from Bisha Targeted by gold-rich gossan, EM and footwall alteration First deposit on Asheli regional conductor High grade, thick, metal-rich massive sulphides intersections (see following slide) 4km of untested strike length Drilling to continue early 2016 MX-044: 1.4% Cu, 4.0% Zn, 0.4 g/t Au, 27 g/t Ag over 8m MX-052: 2.3% Cu, 4.5% Zn, 0.4 g/t Au, 37 g/t Ag over 23m MX-056: 1.3% Cu, 6.1% Zn, 0.3 g/t Au, 26 g/t Ag over 21m EM = electromagnetics (geophysics) For Section B-B, plan map and detailed results see news release dated June 18,

23 Asheli Cont d Chalcopyrite 6.0% Cu m Hole MX-056 Zn Cu Rich Massive Sulphide from m = 20.9 m 1.26% Cu 6.08% Zn 0.28g/t Au 26g/t Ag Massive Sphalerite 33% Zn m Banded Sphalerite 17.0% Zn m 1.44% Cu 7.64 % Zn m For detailed results see news release dated June 18,

24 Aderat 2014 greenfield discovery Massive sulphide 10km from Bisha MX-012 MX-016 MX-011 MX-017 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) 2015 DDH 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 % Cu 6.99% Zn 0.38 g/t Au 14 g/t Ag over 16.0 m Open BHEM = borehole electromagnetics (geophysics) For sections, plan map and detailed results for MX-011 and -012 see news release dated June 16,

25 Hambok large massive sulphide Still looking for the feeder system likely towards Aderat Discovered in 2006; drilled extensively through 2013 Very large pyritic massive sulphide deposit Indicated and inferred open pit resources 1 No alteration zone or feeder system found (yet) Open along strike (north and south) and at depth 1 For details of open pit resources see NR February 3,

26 Hambok-Aderat trend 2016 and future targets 6km under-explored trend Aderat Deposit Several untested target areas including: Aderat South Hambok extension north & south 4km of untested strike length Drilling to continue in 2016 Aderat South Hambok North Hambok Deposit 2016 Target Hambok South Future Target 26

27 Takewuda 2016 target Numerous untested VTEM anomalies Untested VTEM anomalies associated with altered felsic volcanic rocks Sericite chlorite schist identical to Guardian Hill overlooking Bisha pit 27

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 page16) 28

29 Forward Looking Statements This Presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation concerning anticipated developments on the Company's continuing and future operations in Eritrea, the adequacy of the Company s financial resources and financial projections. Forward-looking statements include, but are not limited to, statements concerning or the assumptions related to estimates of capital and operating costs, 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 and resources, 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, and other 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 or be achieved. Information concerning the interpretation of drill results and mineral resource and mineral reserve estimates also may be deemed to be forward-looking statements, 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 of mineral 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 may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company s forward-looking statements are based on the beliefs, expectations and opinions of management on the 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 can be 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 the reasons 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 with our business which have been filed with Canadian securities regulators and are available at and have also been filed or submitted to the U.S. Securities and Exchange Commission on Form 40-F or Form 6-K and are available at Except as otherwise noted herein, Peter Manojlovic, Vice President of Exploration and Frazer Bourchier, Chief Operating Officer, Qualified Persons as defined by National Instrument , have approved the scientific and technical information concerning Nevsun Resources Ltd. discussed herein. 29

30 INVESTOR RELATIONS TEL: TOLL FREE: WEB: TSX: NSU NYSE MKT: NSU