Nevsun Resources Ltd reported an 18-percent sequential rise in quarterly gold production at a mine in Eritrea and said it was drilling to increase mineral reserves at the mine.

July-September gold production at Bisha mine, commissioned early this year, rose to 110,000 ounces from 93,000 ounces in the previous quarter.

Nevsun said the ore milled rose slightly to 446,000 tonnes in the quarter.

The Vancouver-based company's shares were trading up about 2 percent at C$5.60 on Thursday morning on the Toronto Stock Exchange.