Nevsun drilling still outlining reserves

Nevsun Resources (NSU-T) has released the final assay results from 42 holes drilled on its 90%-owned Tabakoto gold project in Mali.

The holes are part of the company’s 1997 in-fill drilling program, designed to test areas within the existing resource zone as well as anomalies to the east, west and south of the main zone. All holes were drilled down to less than 200 metres.

The Tabakoto deposit is estimated to contain an indicated and inferred resource of 5.9 million tonnes grading 7.2 grams gold, for 1.36 million contained ounces. An additional low-grade halo around the deposit adds another 210,000 oz., bringing the total resource to 1.57 million contained ounces. The company expects to release an updated resource calculation shortly.

The best results from the in-fill holes were: 8.5 metres grading 35.5 grams gold per tonne in hole 165; 5 metres grading 10.98 grams in hole 167; 4.4 metres grading 14.2 grams in hole 183; 7.1 metres grading 20.8 grams in hole 187, including a 1-metre interval grading 132.24 grams; 8 metres grading 8.8 grams in hole 191; 6 metres grading 20.2 grams in hole 193; and 22.5 metres grading 14.2 grams in hole 195.

Eight exploration holes were put down south of the main zone; they intersected further mineralization over a strike length of about 800 metres.

Highlights include 6 metres grading 1.9 grams gold per tonne in hole 166; 5.3 metres grading 6.51 grams in hole 199; 6 metres grading 1.25 grams and 2.6 metres grading 2.83 grams in hole 206; and 3 metres grading 56.66 grams in hole 207. Drilling will continue to define the zone’s potential.

Another 15 holes were collared on a 400-metre-spaced grid to the east and west of the main zone. Narrow zones of gold mineralization were intersected in 10 of the drill holes, including: 2.9 metres grading 1.75 grams gold per tonne in hole 179; 1 metre grading 5.27 grams in hole 181; 2.5 metres grading 2.5 grams in hole 186; and 0.8 metre grading 6.41 grams in hole 198.

More drilling on this grid is planned.

The 1998 drill season will focus on in-fill drilling to a depth of 300 metres. The intercepts south of the main zone will be more thoroughly investigated, as will other exploration targets on the Tabakoto site.

Reverse-circulation drilling is under way to test the upper oxide portion of the main zone.

Nevsun has 27.7 million shares fully diluted and a working capital of $21 million.