Jan 22 －Base metals producer Nevsun Resources announced this week it has discovered a new high-grade copper/gold deposit about 500 m east of the Timok Upper Zone, in Serbia.

Ongoing drilling has intersected new high-sulphidation epithermal (HSE) copper/gold mineralisation, similar to that found at the Timok Upper Zone deposit.

Mineralization occurs over a 250 by 250 meter area which is similar in plan size to the Timok Upper Zone.  The new zone of mineralization has similar characteristics to the Upper Zone with massive, semi-massive and disseminated mineralization that is dominated by pyrite with lesser covellite and energite.

Nevsun said key intersections included 2.93% copper (Cu) and 2.54g/t gold (Au)m for a copper-equivalent grade of 4.71%, over 27 m starting at 396 m in hole TC170189; 3.1% Cu and 0.8 g/t Au for 3.66% Cu equivalent, over 18 m starting at 569 m in hole TC170182R; and 3.91% Cu and 1.61 g/t Au for 5.04% Cu equivalent over 7.5 m starting at 474 m in hole TC170188R. Copper equivalent is calculated using a ratio of 1g/t Au being equal to 0.7% Cu.

Nevsun advised that exploration drilling will continue in 2018, aided by downhole electromagnetic surveying, and will focus on expanding the mineralisation found in the new zone.

"While the quantum of this new discovery is still unknown, mineralization of a similar tenor could be processed at the Timok Upper Zone mill, further enhancing the already stellar project economics. These results demonstrate the tremendous upside potential of the Timok project area for additional new discoveries," CEO Peter Kukielski noted in a statement.

Just 5 km to the north of Timok, miners have historically produced more than 144-million tonnes of HSE at the Bor deposits, drawing from no fewer than 27 separate ore bodies.

Nevsun noted that hole TC170189 is a vertical Lower Zone hole and does not represent true width.