great news for sbs , page-2

Yep, i seen that this morning. Here's the link: http://www.theglobeandmail.com/servlet/story/RTGAM.20071212.wnevsun1212/BNStory/energy/?page=rss&id=RTGAM.20071212.wnevsun1212


Nevsun says Eritrea has signed mining agreement for Bisha

The Canadian Press

December 12, 2007 at 11:25 AM EST

VANCOUVER — — After years of political suspense, Nevsun Resources Ltd. [NSU-T]appears to have cleared the final obstacle to developing the Bisha mine in Eritrea, said to be one of the largest unexploited gold and base-metal deposits in Africa.

Nevsun said Wednesday its Eritrean venture, Bisha Share Mining Co., has concluded a mining agreement with the government which “contains all of the normal provisions governing the future development and operations for the Bisha project, including all substantive requirements of international financial institutions.”

The government has told the company a mine licence “will be issued soon.”

Nevsun shares gained 9.6 per cent Wednesday morning, rising 19 cents to $2.17 on the TSX, up from a low of 80 cents in August but down from $9 in late 2003 before Eritrea blocked work by Nevsun and other international companies while the government conducted a broad review of resource extraction policy.
Nevsun Resources

Nevsun shares rose sharply in early trading Wednesday.
The Globe and Mail

Nevsun was allowed to resume exploration in 2005, while the government continued holding off on permits.

In October the government took a 30 per cent interest in Bisha Share Mining Co., adding to a 10 per cent stake mandated by its mining law, while Nevsun completed a $15-million equity issue to fund work on the mine.

Nevsun's statement Wednesday quoted a government minister, Tesfai Ghebreselassie, as saying Bisha “has a special significance both for its economic benefits and trend-setting effects on the path of the industry we are very eager to develop in Eritrea.”

Nevsun estimates the “world-class” open-pit operation has proven and probable reserves of four million tonnes of ore with 7.99 grams per tonne of gold and 32.85 grams per tonne silver in a 35-metre-thick surface zone, underlain by a 30-metre-thick zone estimated to contain 6.4 million tonnes containing 4.4 per cent copper and further gold and silver, and a deeper deposit showing 7.2 per cent zinc.

Nevsun's feasibility study, released late last year, envisages mining and processing of each zone in succession.