Dallas, Texas 09/18/2013 (Financialstrend) – On September4, Nevsun Resources (USA) (NYSEMKT:NSU) reported previously undisclosed results of mining test conducted by former owners of Mogoraib river license holder. This license includes the larger Hambok mineral deposit that the company acquired in October’2009. Following the publishing of this report, the markets reacted positively and Nevsun share price jumped up 9% over the next six trading days to reach a high of $3.9 per share on September 10.
Since then the shares have trimmed some of its gains and is trading at $3.31 per share as of close of business on September 17. This indicates a near 1% increase from its previous day close. At current valuations, the share is trading 33% below its 52 weeks high price and 24% up from its 52 weeks low price.
The highlight of the September4 report is a confirmation of massive body of sulphide in the test region. The test also disclosed that the Hambok mineral deposit formation is much larger than previously estimated with extension of the current block in the north and south direction. It expects to release a formal updated mineral resource estimate in early 2014. The company has explained that Hambok is a copper-zinc massive deposit which is spread across a 97 square kilometre range and is situated 16 kilometres from Nevsun’s Bisha Mine. Hence the company is hoping that this new find will translate into a potential additional to existing Bisha reserves.
Based on the new revelations, the Bisha team is readying to conduct a resource definition drilling program at Hambok with the hopes of including the findings from the survey into its reserve estimates which will be made public in its 1QFY14 quarterly report to be published on December 31. The company believes that it has a huge potential to expand operations in Hambok and its immediate surrounding areas.