Vancouver-based miner Nevsun Resources has reported declining gold output at its Bisha mine, in Eritrea, in line with expectations, as the company readies itself to transition to being a copper producer.

Gold production for the quarter ended June 30 totalled 34 900 oz, 17% less than the 42 000 oz it produced during the first quarter of the year, which was in line with its 2013 production guidance of 110 000 oz of gold.

Starting on June 15, an additional 2 700 oz of gold and 277 000 oz of silver were pro-duced in concentrate. The precious-metals concentrate would either be sold directly or blended with copper concentrate.

The company, which reports that its copper expansion project remains on schedule and under budget, is targeting copper-in-concentrate output of between 30 000 lb and 50 000 lb in 2013.

Waste mined in the quarter totalled 1.67- million tonnes, resulting in a strip ratio of 4.5:1 by volume. Waste stripping is behind schedule; however, this was not expected to have a negative impact on copper production through to the end of 2014.

Nevsun says action has been taken to rectify the underlying equipment delivery and maintenance issues. The north-east layback has been delayed so that the oxide ore below the north-east wall will likely be mined and stockpiled for proces-sing in future years.

The company milled 455 000 t of ore in the period, which includes 56 000 t of the transitional pyrite-sand ore processed from June 15. The pyrite-sand processing, which serves to partially commission the copper flotation plant, is progressing to plan, with minor problems having been rectified. To date, the pyrite sand is performing to expectations for metallurgical performance.

Nevsun president and CEO Cliff Davis also notes the company has achieved a safety milestone, with 12-million work hours achieved without a lost-time injury (LTI), the last LTI being in the fourth quarter of 2011.

The company adds hat it is still on the prowl for merger and acquisition opportunities, but that it has not yet identified a suitable investment opportunity with an all-in economic return fitting for its shareholders.