Oliver, Trillion to sell Segala gold project to Nevsun

Nevsun Resources (NSU-T) has entered into an agreement to purchase the Segala gold project in Mali, held 50-50 by Oliver Gold (OGO-V) and CMC, a 51%-owned subsidiary of Trillion Resources (TLQ-T).

Half of the $17-million purchase price will be paid on closing by way of $1.7 million in cash and 1.7 million Nevsun shares at a deemed value of $4 per share. The balance will be paid one year after closing in either cash or 2.1 million shares, at the option of Nevsun. The agreement is subject to all necessary regulatory approvals.

Situated in the Kenieba region of western Mali, the Segala project area is north of, and adjacent to, Nevsun’s Tabakoto concession. The Segala project comprises four adjoining concessions covering 39 sq. km. Oliver and CMC have spent approximately $19 million on exploration at Segala over the past three years.

Segala contains a resource estimated at 15.4 million tonnes grading 2.75 grams gold per tonne, equivalent to 1.37 million contained ounces. The oxide component of this resource weighs in at 1.2 million tonnes grading 2.27 grams gold, for about 84,000 contained ounces; sulphides make up the balance. The resource estimate was based on a total of 69 diamond drill holes and 291 reverse circulation holes.

In the Dar Salam and Morali areas of the concessions, soil geochemical sampling and geophysical surveys have identified several potential targets that warrant future drilling. The Dar Salam area possibly represents the northern extension of the Tabakoto mineralization being evaluated by Nevsun.

Nevsun’s 90%-owned Tabakoto project is estimated to contain an indicated and inferred resource of 5.9 million tonnes grading 7.2 grams, for a contained 1.36 million ounces. A lower-grade mineralized envelope contains an additional 3.6-million-tonne resource grading 1.8 grams, equivalent to 210,000 contained ounces. Initial metallurgical testwork indicates the mineralization at Tabakoto is non-refractory.

Nevsun believes the consolidation of the Tabakoto and Segala properties will significantly enhance the economic viability of the combined project.