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Bisha: Untapped
Exploration Potential
TSX: NSU | NYSE MKT: NSU JUNE 2015
Bisha: untapped exploration potential
Delivering organic growth through the drill bit
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VMS deposits commonly form in “Districts” or “Camps”
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VMS deposits well understood and exploration techniques well
established
Re-started greenfield exploration in 2014 after a decade of
development
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Many deposits with hundreds of millions of tonnes
Bisha licenses are District in scale
Successful 2014 program added a new discovery and 7MT of high-grade
resources at Harena; still open
Aggressive 2015 exploration program underway with early success further
extending Harena; work continues
Bisha District remains underexplored with potential for significant
additional tonnage and deposits
2
District scale license position
More VMS deposits and tonnage likely
Potential to increase Bisha District VMS tonnage through
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Extending current deposit tonnage at depth and on-strike
Adding new district deposits; just 4 to-date
VMS DISTRICT DEPOSIT SIZE & DISTRIBUTION
Open
District
Mine
5 km
Noranda District
Flin Flon District
Bisha District
25 deposits
18 deposits
>200Mt
>180Mt
just 4 deposits
*
1 VMS = Volcanogenic Massive Sulphide
*
58Mt to-date
Scale
*Total MI&I resources (current
plus mined) for district
deposits
Source: Sangster, Quantitative
characteristics of VMSs and
Company data
3
Bisha District under-explored
Drilling resource development focused until 2014
Nevsun Eritrean exploration starts
1998
DIAMOND DRILL HOLES (DDH)
BISHA, HARENA AND MOGORAIB
2002
Bisha discovery hole drilled
Bisha Main resource
development
2004
2006
Bisha feasibility completed
Development
Exploration
2008
Resource development
for known mineralization
at Harena, Northwest
Zone and Hambok
Focus switches to new discoveries
2010
2012
2014
0
50
100
150
4
Bisha district under-explored
Similar mature Districts have far more drilling
FLIN FLON, CANADA
2,769 drill holes
BISHA, ERITREA
~900 drill holes
Bisha Mining
License
* MAPS AT SAME SCALE *
Harena
Mining
License
5
VMS deposits well understood
Exploration techniques based on morphology and well established
TYPICAL VMS MORPHOLOGY
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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
Exhalite or Favourable
Time Horizon
High
Zinc
High
Copper
Massive
Sulphide
Metal
Zonation
Highly
Conductive
(Copper)
Mineral
Alteration
Sea Water
Copper &
Gold Stringer
Volcanic
Rocks
Source: Lydon, Ore Deposit Models:
Volcanogenic Massive Sulphide Deposits.
Part 2: Genetic Models.
6
1 VMS = Volcanogenic Massive Sulphide
Borehole TEM
Standard VMS exploration methodology
– EM and lithogeochemistry
TEM = Transient electromagnetics
EM = electromagnetics
7
Bisha District Growth
Resource development delivered growth until 2014
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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
60
15
Mt
Inferred
+65%
M&I Resources
50
Mine Life,
years
10
Reserve
40
30
5
20
Reserve
Depletion
0
Startup
Dec 2014
10
0
Feasibility
Jan 2011
Jul 2012
Dec 2013
Current resources (effective date Dec 31, 2014) detailed in news release dated Feb 3 2015
Current reserves (effective date Dec 31, 2013) detailed in news release dated Feb 18 2014 and the supporting 43-101 report
Dec 2014
8
Bisha District Licenses
NORTH
Strategic District scale license position
Camp
NW Zone
Bisha Mining
License1
Favourable Horizon
Felsic Volcanic
Exploration Targets
Plant
Bisha Main
Bisha Licenses
Current Resource
Map scale is
approximate
Ashelli
Aderat
Hambok
Takewuda
Harena
Harena Mining
License
Mogoraib River
Exploration License
1 Dotted line represents Mining Agreement area.
Bisha has exploration rights on this area.
9
2015 Exploration
Objectives
1. Expand and upgrade resource at Harena
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Early success with wide, high-grade intercepts in
step-out holes HX-50 and HX-51
See following section for more…
2. Drill high priority targets at depth and on
strike from Bisha Main
3. Continue testing high priority targets on
the Mogoraib River exploration license
Budget: ≈$15 million
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Increased from $10 million
≈35,000 m of diamond drilling
Future: Nevsun expects BMSC will continue
to fund significant exploration programs on a
success basis
10
Harena Mining License
11
Harena down dip
expansion
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In 2013, recognized highly altered
rhyolite footwall indicative of
larger VMS system (top)
2014 drilling discovered major
southern extension
Right: Southern Extension Discovery
Hole HX-005, May 2014
12
Harena extension drilling
Currently drilling
resource extension
targets defined in 2014
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Down-hole geophysics
indicates extensions of
2014 resource probable
First results extended high
grade mineralization in
upper and lower massive
sulphide zones
Additional high grade gold
zone in stringers
More work ongoing in 2015
For summary of 2014 Harena results see December 17,
2014 news release and recent 2015 results April 28,
2015. Harena resource statement (red in figure) is
described in the 2014 Annual Information Form (AIF)
Harena Pit
HX-039
HX-044
HX-047
Core of Strong
Mineralization
HX-049
HX-043
HX-051
HX-050
HX-050: 1.7% Cu, 6.6% Zn, 0.4g/t Au, 28g/t Ag over 67m
4.6% Cu, 3.4% Zn, 1.0g/t Au, 63g/t Ag over 22m, and
0.2% Cu, 8.2% Zn, 0.1g/t Au, 10g/t Ag over 45m
including
HX-051: 1.1% Cu, 3.6% Zn, 0.4g/t Au, 22g/t Ag over 74m including
4.2% Cu, 1.2% Zn, 1.0g/t Au, 62g/t Ag over 11m
13
Harena extension drilling
cont’d
Lower zone massive sulphide
widened and extended with Hole
HX-050 and HX-051
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Extends lower zone mineralization 120m
down plunge, beyond current resource
Increasing grade and widening
Open at depth
For Section A-A and detailed results see new release dated April 28, 2015.
14
Harena
extension
drilling cont’d
Current
Mineralization
Outline
Harena Gravity
Anomaly
High potential for
further growth
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Gravity anomaly suggests
further expansion to the south
likely
Aligns with down hole EM
results (see long section on earlier slide)
Further drilling to test to depth
in 2015
15
Bisha Mining License
16
Bisha Mining License targets
Large number of near-mine targets remain
2014 VTEM Survey Conductance Map
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2015 work focused
on Bisha at depth
and high priority EM
target at Guardian
Hill
Results will feed into
ongoing life-of-mine
optimization work by
SRK
Bisha NW Zone
Extension
Considerable Number of
Untested EM Anomalies
Little Guardian Hill
Anomaly
Bisha NW Gap
Guardian Hill
Anomaly
South Bisha
Anomaly
Future Target
2015 Target
Drill Hole
Bisha Harena Gap
17
Untested near-mine anomalies
Being tested for resource extensions
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Re-interpreted historical geophysical data and
testing all current holes with down-hole EM
Yielding large number of targets or “plates”
2015 work testing high priority targets
Guardian Hill near
surface; being tested
Section B-B
for supergene
copper extensions
Bisha Plan with Borehole EM
Interpretations (Plates)
Guardian Hill
Anomaly
(see following slide for more)
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South Bisha being
tested for primary
copper-zinc
extension at depth
South Bisha
Anomaly
South Bisha
Anomaly
B
B
(see following slide for more)
18
South Bisha Anomaly (Longitudinal)
Being tested for primary Zn-Cu resource extensions
Assays
Pending
South Bisha
Anomaly
Assays
Pending
Assays
Pending
Assays
Pending
100 m
N
19
Guardian Hill Anomaly
Near surface EM anomaly targeting supergene Cu
UNTESTED GEOPHYSICAL “PLATE”
BENEATH GUARDIAN HILL
S
Looking West
Footwall
N
Looking South
20
Considerable number of other
untested EM anomalies
%Zn-Ag
BX-001 0.33 2.9g/ 67m
%Zn - Ag
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Numerous untested
VTEM and Transient
EM anomalies west
of the mine
BX-001 targeting a
large Transient EM
anomaly
encountered felsic
volcanics with highly
anomalous Zn
21
Mogoraib
River
License
Mogaraib River License
Targets
Aderat
2014 VTEM MAP
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2014 VTEM survey tightened
coverage to 100 m line
spacing better defining
anomalies
VTEM detection depth ~ 100
Hambok
Few holes outside of
Hambok and Aderat
2015 work targeting
new discoveries at
Asheli and Takewuda
Future Target
Asheli
Drill Hole
Takewuda
Significant VTEM Anomaly
2015 Target
Mogoraib River License
23
Asheli
NEW GREENFIELD DISCOVERY
Right: Asheli Plan Map
Formational
Conductor
Axis
Gold-rich
Gossan
~ 3 g/t Au
Footwall
Alteration
MX Holes =
BMSC 2015
Au Gossan
ASD Holes =
Sanu 2005 2007
Proposed
Holes
100 m 24
Asheli Cont’d
Hole MX-044
Zn – Cu Rich Massive Sulphide
from 202.3–208.3m = 6.0 m
Sphalerite band
within pyrite matrix
Assays pending…
Pyrite + Chalcopyrite
Sphalerite
25
Asheli cont’d
South Asheli Host Rock
Rhyolite fragmental breccia identical to the host rock of many large VMS deposits
ASHELI SOUTH
FLIN FLON TROUT LAKE HOST ROCK
26
Takewuda
NUMEROUS UNTESTED VTEM ANOMALIES ASSOCIATED
WITH ALTERED FELSIC VOLCANIC ROCKS
Sericite – chlorite schist identical to
Guardian Hill overlooking Bisha pit
27
2015 Exploration
Objectives
1. Expand and upgrade resource at Harena


Early success with wide, high-grade intercepts in
step-out holes HX-50 and HX-51
See following section for more…
2. Drill high priority targets at depth and on
strike from Bisha Main
3. Continue testing high priority targets on
the Mogoraib River exploration license
Budget: ≈$15 million


Increased from $10 million
≈35,000 m of diamond drilling
Future: Nevsun expects BMSC will continue
to fund significant exploration programs on a
success basis
28
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 forwardlooking 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 www.sedar.com, which
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 www.sec.gov.
29
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