Infill drilling confirms continuity at Bisha

Vancouver — Results from a final round of infill drilling augur well for the continuity of mineralization at the Bisha volcanogenic massive sulphide (VMS) deposit in Eritrea.

Nevsun Resources (NSU-T) tested the gold-rich deposit in two areas on 12.5-metre centres to confirm continuity as part of a reserve estimate, scheduled for completion in the fourth quarter. The estimate will be incorporated into the feasibility study, which Nevsun expects to have in hand in the first quarter of 2006.

The property hosts several VMS zones and exploration targets, though work to date has focused on the Bisha Main zone, which contains the resources identified to date.

At last report, Bisha had an indicated resource of 22.75 million tonnes, plus 5.8 million tonnes in the inferred category.

Grades vary, as four principal zones of mineralization occur in the Bisha Main zone. These consist of near-surface oxides, a horizon subjected to extreme acidification, a supergene copper-enriched horizon, and a primary massive sulphide horizon.

Grades are highest in the oxides, which at present account for an indicated resource of 5 million tonnes grading 6.51 grams gold and 30 grams silver per tonne plus 0.1% copper and 0.08% zinc. The supergene zone hosts 7.6 million tonnes of 0.46 gram gold, 35.56 grams silver, 3.47% copper and 0.87% zinc, while the primary zinc zone hosts 8.4 million tonnes of 0.76 gram gold, 58.27 grams silver, 1.12% copper and 9.04% zinc. (These resource estimates will be updated and upgraded in the reserve and resource estimates expected later this year.)

The latest results from infill drilling are from the northern section of the deposit. Highlights from the oxide zone are: 39 metres grading 14.77 grams gold, including 6 metres of 70.76 grams gold; 33.75 metres of 10.1 grams gold; and 34.35 metres of 11.4 grams gold. These intercepts also returned silver values, plus minor values of copper, lead and zinc.

Several exploration holes were drilled at the northern end of the deposit in order to extend and better define mineralization. Results from the oxide zone include 10.5 metres grading 7.89 grams gold and 10.5 metres of 5.14 grams gold. Results from the primary zone were less impressive, at 9.7 metres of 2.18 grams gold and 36 metres of 0.31 gram.

A hole drilled in the hangingwall of the Bisha Main zone returned 44.5 metres of 0.01 gram gold.

The Bisha project is held 90% by Nevsun, with the government of Eritrea holding the remainder. The project is in the Gash-Barka district, about 150 km west of Asmara.