Hear is the Update - Looks Good

  1. 653 Posts.

    Anvil Mining NL ("Anvil") is pleased to announce significant progress
    on the development of the Dikulushi copper-silver mine in the
    Democratic Republic of Congo ("DRC"). The project is now
    approximately 55% complete, it is on budget and it is scheduled to
    produce its first concentrate averaging 40% copper and 1,230 g/t
    silver, by 25 August 2002.


    On 14 June 2002, Anvil officially launched the Dikulushi concentrate
    barge. This is a self-propelled barge, 48 metres long and 10 metres
    wide, powered by two 150 HP Z-Drives fabricated by Thrustmasters in
    Houston, Texas. The barge, which is capable of carrying up to 250
    tonnes of cargo, began transporting containers and larger equipment
    across to the DRC on 18 June. Prior to the launch of this large
    barge, the construction works were supported by a vehicular pontoon
    barge (25 tonne capacity) purchased in April 2002 from the Zambian
    Roads Department.

    The sixteen prefabricated sections used to build the large
    concentrate barge were purchased in August last year in Richards Bay
    South Africa, where they underwent a considerable amount of
    re-engineering between August and December 2001. During February and
    March this year, the sections were transported to Nchelenge, a town
    on the Zambian side of Lake Moero, where the barge assembly operation
    was undertaken.


    The docking facilities at Nchelenge (Zambia) and at Kilwa (DRC side
    of Lake Moero) are now 90% complete. The docking site on the DRC side
    of Lake Moero was moved south from Mobanga to Kilwa because of water
    depth issues.

    An existing house on the land occupied by the Nchelenge docking
    facility has been refurbished for use by local Customs and
    Immigration officers, and port authorities. A similar building has
    been erected for the same purpose at the Kilwa docking facility.


    Construction of the 35 tonne per hour Heavy Media Separation ("HMS")
    Plant in Johannesburg was completed on 12 June 2002. After water
    testing, the plant was dismantled in preparation for shipment to the
    DRC. It is expected to arrive on site by 28 June 2002. The HMS plant
    is a modular unit and erection on site will take less than one week.


    A three-stage crusher circuit purchased from major shareholder First
    Quantum Minerals Ltd in April was brought to Ndola, Zambia where it
    underwent a complete refurbishment. It is now at Nchelenge on the
    Zambian side of Lake Moero, and will be transported to the Dikulushi
    site when the concrete plinths at the plant site are completed during
    the next two weeks.


    A containerised mine site laboratory has been assembled in Perth by
    SGS Laboratories. The four containers are due to leave Perth for
    Durban, South Africa today.


    The four 375KW Scania electrical power generating units were
    delivered to Nchelenge in May and will be taken across to the mine
    site during the coming week. The concrete plinths for the power units
    are approximately 60% complete.


    Construction works at the mine site were stepped up in early June
    following the clearing of the site and the surveying of the civils
    layout in May. Work has commenced on the ROM pad retaining wall, the
    stockpile tunnel, the crusher pad, and the fuel storage area. The
    vegetation has been cleared from the tailings dam area.

    The accommodation units to house 30 contractors were completed this
    week and during the coming weeks additional units will be erected to
    house a total of 60 contractors.


    The 50 km access road from the docking facility at Kilwa to the mine
    site at Dikulushi has been upgraded so that the trip now takes 75
    minutes in a two-wheel drive vehicle. Further refurbishment work and
    laterite sheeting will be undertaken on this road over the next month
    to facilitate the movement of concentrate trucks.


    Anvil has continued to build up the small team who will manage the
    operation of the Dikulushi mine. Project Manager Mike O'Sullivan is
    now on site at Dikulushi with his family. Others on site include
    Denham Vickers, Manager Mining; Frederick Ng'ona Mine Geologist; Anne
    Normandin, Project Administrator; Gerry Hyendrick, Barge Training
    Skipper; Graeme Martin, HSE Superintendent and Medic; Thinus Bergh,
    Manager Security; and Mertyl Adams Camp Superintendent. All have
    substantial African experience.

    Choong Tan, previously Chief Financial Officer for African Mining
    Services in Johannesburg will join the Company in Perth as Financial
    Controller, on 24 June 2002.


    Anvil commenced the drawdown on the RMB Resources Ltd Project
    Financing Facility on 21 May 2002. Anvil has access to all the funds
    required to complete the development of the Dikulushi Project, and
    most importantly, has all the DRC government approvals required. In
    addition, Anvil disposed of a further 200,000 Golden Star Resources
    Ltd ("GSR") shares on 3 June 2002 at a share price or US$2.22 for net
    proceeds of US$441,780. Anvil currently holds 842,361 GSR shares.
    Anvil acquired these shares in GSR in August 2001, at a deemed price
    of US40 cents per share, following a conversion of its direct
    interest in Bogoso Gold Limited in Ghana, to an equity interest in


    Dikulushi has an independently audited Measured, Indicated and
    Inferred Resource (at a 2% Cu cut-off) of 1.94 million tonnes at an
    average grade of 8.58% copper and 266 g/t silver, 85% of which is in
    the Measured and Indicated categories. Since Dikulushi is open at
    depth, with one of the deepest drill intersections (DIK 30)
    intersecting 16.7 metres of 16% copper and 522 g/t silver at a
    vertical depth of only 165 metres, potential exists to significantly
    increase the resources of this deposit and extend the mine life well
    beyond its current 8 years.

    The HMS approach is expected to produce a concentrate grading
    approximately 40% copper and 1,230 g/t silver. Subsequent expansion,
    with the addition of a ball mill and flotation circuit (Stage II)
    would be largely funded out of project cashflows and would produce a
    very high-grade concentrate averaging 60% copper and 1,935 g/t

    For additional information, please contact:

    Bill Turner

    Tel: +61 89 481 4700 or +61 (0) 411 188 018
    Email: [email protected] (Perth) and [email protected] (travel)
    Anvil HomePage: www.anvil.com.au

    ends - AAP

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