Nevsun drills Ghanaian concession

The main prospect on the Kubi concession in Ghana is being drill-tested at depth and along strike in a 7,000-metre program.

Nevsun Resources (VSE), which owns a 90% interest in the 44-sq.-km project, is testing the deposit to depths of up to 800 metres, with the intention of evaluating reserves.

Two zones of mineralization have been outlined on the prospect, one of which is 250 metres long, 425 metres deep and 3 metres wide, while the other measures 150 metres long, 425 metres deep and averages 3.5 metres wide. Both structures are open at depth.

Intersections from recent drilling include: 5.73 metres of 12.04 grams gold per tonne at a depth of 276 metres for hole 95-10; 3.7 metres of 22.71 grams at a depth of 192 metres for hole 95-13; 4.5 metres of 21.96 grams at a depth of 214 metres for hole 95-16; 2.65 metres of 34.78 grams at a depth of 422 metres for hole 95-22; and 4.55 metres of 41.74 grams at a depth of 224 metres for hole 95-24.

A preliminary resource estimate, based on the recent drill data, is expected to be in the neighborhood of 1.5 million contained ounces.

The Jimiludo prospect, a large, coincidental, induced-polarization, gold-in-soil anomaly, was also drill-tested. No significant gold values were intersected.

Nevsun plans to test the Lagos prospect, a coincidental, geophysical and geochemical anomaly that covers a 400-sq.-metre area, about 3 km along strike of the Kubi zone to the north.

Meanwhile, the company is awaiting results from 18 holes drilled at its 90%-owned Tabakoto project in Mali.

Nevsun has working capital of $6 million and about 14 million shares outstanding.