The Bisha Discovery
The Bisha Discovery
In 1995, Nevsun Resources embarked on its exploration journey as a modest $5M VSE-listed company, seeking promising discoveries across Africa. With active projects in Mali and Ghana, coupled
In 1995, Nevsun Resources embarked on its exploration journey as a modest $5M VSE-listed company, seeking promising discoveries across Africa. With active projects in Mali and Ghana, coupled with a thriving exploration bull market, the company witnessed an impressive surge in market capitalization to a high of $250M in 1996. The stock also went 10x, from $1.65 to $16.50. However, the infamous Bre-X scam cast a shadow over the exploration sector, causing a downturn in investor interest and a subsequent drop in Nevsun's market cap and share price, returning to its initial levels.
Amid these challenging years, Nevsun strategically acquired an option for the Bisha prospect from Ophir Ventures, which had found a surface exposure at Bisha. In 1998, Nevsun secured a prospecting license for the area, although exploration activities were halted from 1999 to 2001 due to the border conflict with Ethiopia, causing Nevsun's stock to plummet to a low of $0.12.
In 2005, Nevsun reignited its exploration efforts, commencing drilling at Bisha based on coincident geophysical and geochemical anomalies, associated with a prominent gossan displaying highly anomalous gold values. The results were staggering, revealing impressive grades, such as 25m @ 6.3% copper, 1.2 g/t gold, and 42 g/t silver. This discovery marked a turning point, rekindling investor interest in Nevsun.
Expanding on their success, Nevsun continued exploration by drilling at depth, yielding even more promising results. However, as they extended their drilling southward, the zone began to thin. Geologists Greg Davis and David Daoud, leveraging their expertise in gravity surveys on VMS projects, identified a significant gravity anomaly about 500 meters south of their drilling location. Despite the absence of outcrop and being concealed under flat alluvium rock, Nevsun relocated the drill to the top of the anomaly and struck gold, literally. The 39th hole resulted in a discovery of 180 meters of the zone, with a 35-meter-thick oxide gold horizon, a 30-meter-thick supergene copper zone, and the rest of the hole comprising high-grade massive sulphides.
Greg Davis remarked, "That's when Bisha truly became Bisha. We demonstrated that it had both size and grade." This success propelled Nevsun's stock to a remarkable $9.00, achieving a market cap of $530M.
Between 2003 and 2006, the exploration effort unfolded with 403 diamond drill and 33 RC holes at Bisha to facilitate a Feasibility Study. True to the nature of VMS deposits, clusters emerged, and Bisha Main stood out as the principal deposit within a 20 km radius, alongside Hambok, Harena, Bisha Northwest, and Ashelli.
In 2006, the project's ownership took shape as the Bisha Mining Share Company, with Nevsun holding 60% and the Eritrean Government claiming 40%. By October 2010, the Bisha Main CIL plant was commissioned, marking a pivotal moment as commercial gold production commenced by February 2011. The Bisha discovery not only reflected the resilience of Nevsun but also underscored the company's ability to navigate challenges and unearth substantial mineral wealth in the heart of Africa.