TSX-listed Nevsun has approved an openpit extension of the Bisha mine in Eritrea, which will add 3.3-million tonnes of ore to the mill, delivering about 470-million pounds of zinc and 52-million pounds of copper.
The extension will allow operations to continue to 2022 and gives Nevsun time to advance the assessment of the Asheli and Herena underground deposits, or to consider further openpit extensions.
Last year, Nevsun decided to reduce the mine life at Bisha, owing to the operational risk of the original large openpit cutback. The openpit extension accesses a portion of the previously envisaged cutback.
Nevsun CEO Peter Kukielski said on Thursday that the openpit extension was supported by metallurgical improvements, combined with the continued strength in zinc and copper prices.
The company would consider an additional openpit extension late next year, he said, adding that several million tonnes of additional high-grade resource in the original pit design could potentially be brought back into the mine life.
The openpit extension will increase the sustaining capital of Bisha from $15-million envisaged for 2018, to $26.2-million. The life-of-mine sustaining capital following the extension is now $39.7-million.
“The investment today increases the long-term cash flow from Bisha, reducing requirements for external funding for the construction of our high-grade, high-return Timok project, in Serbia,” said Kukielski.