Nevsun Produced 10,700 Kg of Gold and $347-million cash in 2011

Nevsun pumped out over 100,000 ounces of gold in the fourth quarter of 2011, bringing the year’s production to 379,000 ounces gold which is around 10,763 Kg of gold.

Nevsun closes the year 2011 by producing 379,000 oz of gold and $347-million in cash

By TesfaNews,

Nevsun Resources (TSX: NSU) produced 101,000 ounces of gold for the quarter (Q4) ending December 31, 2011, at its Bisha mine in Eritrea. Year-to-date, Bisha Mine produced 379,000 ounce of gold, including 35,000 ounces during the commissioning. Cash increased to US $347 million at December 31, 2011, which is a 52% increase from the end of the September quarter (Q3).

It is believed that the State of Eritrea has also cashed in more than $170-million in revenue from its 10% free carried interest, 5% royalty and 38% corporate tax alone. Any cash that would otherwise be paid to the state for its 30% stake will keep going to Nevsun’s coffer until the purchase price of $253.5-million been paid in full through after-tax cash flows. Continue reading


Chalice Hits Gold up to 138g/t tonne in Eritrea

Ever since it decided to sell Zara to SFECO group, Chalice continued to hit high grade gold results. Any regrets?

By Proactive Investor,

Chalice Gold Mines (ASX: CHN; TSX: CXN) has received gold hits of up to 138 grams per tonne gold from drilling at the Koka South prospect in Eritrea.

The Koka Gold Deposit is part of the Zara Project in Eritrea, which Chalice agreed to sell the remaining 60% of Zara Gold Project in December to China SFECO Group for US$80 million in cash plus a payment of US$20 million at a later date. Continue reading