MiningNews Article 23/07/02

  1. 206 Posts.
    Hi Fellow Anviler's,
    Basically information from the recent ASX announcement. Bill adds a few words of comfort with regard to the political situation in DRC. Cheers John.

    MiningNews.net: Anvil set to begin DRC production

    JUNIOR explorer Anvil Mining will make the leap to miner next month with the
    start of production at its rich Dikulushi copper-silver project in the
    Democratic Republic of Congo.

    The US$5.7 million stage one development, involving an openpit mining operation
    and heavy media separation processing, is on track for practical completion by
    August 15 and production of the first concentrate on August 25, Anvil executive
    director Bill Turner said.

    Anvil has struck an off-take deal for the 40% copper/1230gpt silver stage one
    concentrate with Swiss metal trading group Republic House that will see it toll
    treated through smelters in Southern Africa.

    Republic House will purchase the concentrate as principal and provide Anvil with
    a trade financing facility that will provide cash flows for Anvil as soon as
    concentrates are delivered to a smelter.

    Anvil said the terms and conditions of the off-take agreement were "more
    attractive than those previously contemplated".

    Stage one will see Dikulushi process 250,000 tonnes of ore a year to produce 30
    million pounds of copper and 1.1 million ounces of silver.

    But Anvil expects to green light the stage two development - involving the
    addition of milling and flotation circuits - by November, which would improve
    the concentrate grade to 60% copper and 1,900gpt silver, worth roughly 80% of
    the value of the copper cathode.

    With a total production cost (including transport and smelting charges) of less
    than US40c per pound (against a copper price of US75c a pound, and rising),
    Dikulushi is expected to throw off an annual operating cash flow of about US$7
    million for Anvil.

    The four-year openpit life at Dikulushi will be followed by an underground
    operation. The deposit remains open at depth, with deepest drill intersections
    returning 16.7m at 16% copper and 522gpt silver at a vertical depth of 165m,
    providing plenty of potential to significantly increase the resources and push
    the mine live well beyond its current eight years.

    Dikulushi has total resources of 1.94 million tonnes at 8.58% copper and 266gpt
    silver, 85% of which is in the measured and indicated categories.

    Turner said earlier the situation in the DRC has improved markedly since
    President Joseph Kabila came to power in January 2001. Anvil returned to the
    central African nation in July 2001 after seeing encouraging early signs of the
    turnaround.

    "We feel we've been in the country long enough to understand the dynamics of the
    place, and we've got very good local support," Turner said.
 
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