Timok Project Location
The Timok copper-gold project consists of the Cukaru Peki Upper Zone and Lower Zone. Nevsun owns 100% of the Cukaru Peki Upper Zone. The Lower Zone is a joint venture with Freeport-McMoRan Exploration Corporation (Freeport).
Upper Zone Overview
The Timok project is located within the central zone of the Timok Magmatic Complex (TMC), in the Serbian section of the East European Carpathian-Balkan Arc. The TMC has one of the highest concentrations of copper enrichment in the Tethyan Belt.
The high sulphidation epithermal ("HSE") mineralization in the Upper Zone comprises massive sulphide, semi-massive, and also vein, stockwork, dissemination and hydrothermal breccia matrix sulphide hosted by strongly altered (advanced argillic and argillic) andesite. The HSE mineralization forms a single coherent zone at depths ranging from 400 to over 800 metres below surface. Pyrite is the dominant sulphide mineral, and the principal copper mineral is covellite with lesser enargite, bornite and chalcocite occurring in veins, hydrothermal breccias, disseminations and replacement. Gold is associated primarily with the copper sulphides.
The Timok project comprises the Brestovac-Metovnica, Brestovac Zapad, Jasikovo-Durlan Potok and Leskovo exploration permits that are held by Rakita d.o.o., a Serbian subsidiary of Nevsun. The exploration permits cover an area of 212.58 sq. km.
Timok Upper Zone PFS Highlights
- 10 year mine life producing over 1.7 billion pounds of payable copper
- Sub-level cave mining with 3.25 million tonnes per annum conventional plant producing copper concentrate
- After tax NAV of $1.8 billion at flat $3.15 per pound copper and 8% discount rate
- $574 million in pre-production capital with 80% IRR and under 1 year payback
- Located in an established mining jurisdiction supportive of new mining investment
The 43-101 technical report associated with the PFS will be posted on our website and SEDAR within 45 days after March 28, 2018.
Reserves & Resources
An initial reserve for the Upper Zone was released in March 2018. The Probable Reserve for the Upper Zone is estimated to be 27 million tonnes at an average grade of 3.3% copper and 2.1g/t gold, containing 0.89 million tonnes of copper and 1.8 million ounces of gold.
Initial Timok Upper Zone Mineral Reserve Statement (as at March 8, 2018)
|Category (all domains)||Tonnes M||Grade||Contained Metal|
|% Cu||g/t Au||% As||Cu, M tonnes||Au, M ounces|
|Total Proven and Probable||27.1||3.3||2.1||0.17||0.89||1.80|
1) The Mineral Reserves and Resources in this news release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
2) Metal prices used include US$3.00/lb Cu and US$1,300/oz Au.
3) A Reserve NSR cut-off of US$35/tonne was used to optimize the SLC Ring layout.
4) Contained metal figures and totals may differ due to rounding of figures.
The Measured and Indicated Resource for the Upper Zone is estimated to be 29 million tonnes at an average grade of 3.7% copper and 2.4g/t gold, containing 1.1 million tonnes of copper and 2.2 million ounces of gold. The Inferred Resource for the Upper Zone is estimated to be 14 million tonnes at 1.6% copper and 0.9g/t gold containing 0.23 million tonnes of copper and 0.42 million ounces of gold. The Resource NSR value used to report the estimate is US$35 per tonne.
Timok Upper Zone Mineral Resource Statement (as at April 24, 2017)
|Category (all domains)||Tonnes
|% Cu||g/t Au||% As||Cu, M tonnes||Au, M ounces|
|Total Measured and Indicated||28.7||3.7||2.4||0.2||1.05||2.2|
Note: totals do not match sum of individual items due to rounding. Qualified person Martin Pittuck SRK UK
1) Resource NSR value used to report the estimate is $US 35 per tonne
2) All figures are rounded to reflect the relative accuracy of the estimate
3) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability
4) Mineral Resource is reported on 100% basis
Lower Zone Overview
The Lower Zone is divided in ownership; currently, Nevsun owns 60.4% with Freeport-McMoRan Exploration Corporation ("Freeport") holding the remaining 39.6%. Upon completion of a feasibility study (on the Upper or Lower Zone), Nevsun will indirectly own 46% of the Lower Zone and Freeport will indirectly own 54%.
The Cukaru Peki Lower Zone porphyry-type mineralization is characterized by chalcopyrite-pyrite and occasional bornite and molybdenite occurring as disseminations and within quartz and quartz-magnetite stockwork veinlets. Anhydrite veins are common. Within the Lower Zone, porphyry-type potassic alteration is preserved locally but generally overprinted by sericite-clay, argillic and locally advanced argillic alteration. The latter overprinting also locally brings covellite-pyrite mineralization. The host rocks are predominantly volcanic andesite and andesite breccias.
The Lower Zone appears to be limited to the southwest and southeast by drilling and geological considerations, but could be reasonably expected to extend to the north, and possibly to the south beneath the Upper Zone where there are no holes extending to the depths at which the Lower Zone might be expected. The top of the Lower Zone mineralization occurs at depths below surface ranging from approximately 1400 metres in the west to 750 metres in the east. The vertical full extent of the Lower Zone is not known since several drill holes terminate in mineralization, but intervals up to 900 metres have been reported. The geometry of the Lower Zone remains to be defined by the ongoing drilling.
The underlying Lower Zone of porphyry type mineralization has not yet been modelled due to the lack of drill data and geometrical understanding, and is currently not included in the resource estimate. An initial 43-101 resource on the Lower Zone is expected later in 2018.
The Mineral Resources were reviewed and approved by Martin Pittuck of SRK Consulting (UK) Limited, a Qualified Person under National Instrument 43-101, details of which can be found on SEDAR under the Company's profile.