Nevsun Resources Ltd. (TSX:NSU,NYSEMKT:NSU) has reached commercial production for the copper expansion at the Bisha Mine in Eritrea following the successful commissioning of its flotation plant. The company has produced roughly 60,000 tonnes of copper concentrate since the start of commissioning in early Q3. Nevsun is on track to meet guidance of 30 to 50 million pounds of copper production in 2013.
According to the company’s press release:
In the past month the plant has been achieving over 80% of its targeted metrics of feed grade, recovery rates, and copper produced in concentrate. The transportation logistics from site to Massawa port are working well and Bisha has made three ocean shipments totalling approximately $60 million in value, with another ship loading this week in Massawa.
Nevsun’s President Cliff Davis said in a statement:
We are very pleased to advance this tremendous deposit to the next stage of production and we are looking forward to significant 2014 cash flow to add to our already strong balance sheet. Our continuing success can be attributed to our staff, contractors and the support of the Government of Eritrea. The State has understood from the beginning that responsible development of the mining industry has the potential to be a significant economic catalyst to the country over the next several years. Our success could not be achieved without the support of the Ministry of Energy and Mines and the Eritrean National Mining Corporation.