July 13, 2017

Nevsun Reports Increased Copper Production In Bisha Q2 Operating Results

Bisha Mining Share Company (the “Company” or “BMSC”) is pleased to report its operating results for the three and six months ended June 30, 2017.

Bisha Operating Highlights During Q2 2017

  • Produced 5.7 million pounds of copper in copper concentrate
  • Produced 43.0 million pounds of zinc in zinc concentrate
    • Sold 7.7 million payable pounds of copper in copper concentrate
    • Sold 34.0 million payable pounds of zinc in zinc concentrate
    • Improved copper recovery to 51.6% from 34.0% during Q1 2017

“We continue to see gradual improvements in the plant performance,” stated Peter Kukielski, BMSC’s Chairman, “We are now producing copper concentrate consistently in the copper circuit versus the prior three quarters where bulk concentrate was being produced.”

Operations Review

 

YTD 2017

Q2 2017

Q1 2017(6)

Q4 2016

Mining

 

 

 

 

Ore mined, tonnes(1)

1,305,000

654,000

651,000

670,000

Waste mined, tonnes

6,853,000

3,739,000

3,114,000

2,445,000

Strip ratio, (using tonnes)

5.3

5.7

4.8

3.6

Processing

 

 

 

 

Ore Milled, tonnes

1,189,000

590,000

599,000

579,000

Zinc feed grade, %

5.6

5.3

5.9

5.7

Copper feed grade, %

0.9

0.8

0.9

0.8

Recovery, % of zinc(2)

64.5

62.2

66.6

63.6

Recovery, % of copper(3)(4)

42.2

51.6

34.0

-

Zinc concentrate grade, %(5)

42.1

41.5

42.5

38.8

Copper concentrate grade, %(4)

17.6

17.4

17.8

-

Zinc in concentrate produced, millions of pounds

94.9

43.0

51.9

46.5

Zinc in concentrate produced, tonnes

43,000

19,500

23,500

21,000

Copper in concentrate produced, millions of pounds(4)

9.9

5.7

4.2

-

Copper in concentrate produced, tonnes(4)

4,500

2,600

1,900

-

Payable zinc in concentrate sold, millions of pounds

86.9

34.0

52.9

35.2

Payable zinc in concentrate sold, tonnes

39,400

15,400

24,000

16,000

Payable copper in concentrate sold, millions of pounds

7.7

7.7

-

-

Payable copper in concentrate sold, tonnes

3,500

3,500

-

-

(1)       Ore tonnes mined in the six months ended June 30, 2017 included 1,237,000 tonnes of primary ore and 68,000 tonnes of supergene ore.

(2)       This represents the overall combined zinc recovery from the zinc flotation circuits (and when bulk concentrate is produced in the copper circuit).

(3)       This represents the copper recovery from the copper flotation circuit only, and excludes copper recovered to bulk concentrate.

(4)       Operating statistics related to recovery as a percentage of copper, copper concentrate grade, and copper in concentrate produced, were not meaningful during Q4 2016.

(5)       Represents combined concentrate grade for both zinc and bulk concentrates.

(6)       Amended for change in classification of previously reported bulk concentrate to copper concentrate and for adjustments identified on final reconciliations of production for the quarter.

 

Bisha Q2 2017 Operating Details

Bisha produced approximately 43.0 million pounds of zinc during Q2 2017.  Zinc production decreased by 8.9 million pounds or 17% from the prior quarter as head grades decreased by 10% and zinc recoveries temporarily decreased as the Company placed additional effort on improved copper recoveries which had some impact on downstream zinc flotation.  Bisha continues to work on strategies to better separate zinc and copper into their respective circuits.

Bisha produced approximately 5.7 million pounds of copper during Q2 2017.  Copper production increased by 1.5 million pounds or 36% from the prior quarter as copper recoveries increased to 52%, despite a 10% decrease in head grade.

The Company amended its Q1 2017 production statistics to reclassify previously reported bulk concentrate production to copper concentrate.  This reclassification was the positive result of selling a good portion of the bulk concentrate on copper concentrate terms in the second quarter.  In addition, Q1 2017 production statistics were also amended to reflect book-to-physical adjustments from the first quarter production reconciliation.

“We have a strong team of world-class consultants supporting Bisha. Management remains focused on moving toward the original plant design by further enhancing recoveries and concentrate quality as quickly as possible,” stated Peter Kukielski.

Forward Looking Statements

Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimated,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved.  Forward-looking statements are statements concerning the Company’s current beliefs, plans and expectations about the future including but not limited to commercial production, future production of copper and related cash flows and other events or conditions that may occur in the future, and are inherently uncertain.

Bisha Mining Share Company

“Peter G.J. Kukielski”

Peter G.J. Kukielski
Chairman