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South African Article

  1. janart

    206 posts.
    Found this article on Mining Weekly(S.Africa) dated today.
    Cheers John.

    Mining contract awarded at DRC project

    --------------------------------------------------------------------------------
    Botswanan company Con Roux has been awarded the open pit mining contract for the Dikulushi copper and silver project in the Democratic Republic of the Congo (DRC).
    With some 70% of the project now complete, mining is expected to start before the end of this month, with the mine scheduled to produce its first high grade concentrate averaging 40% copper and 1,230 g/t silver towards the end of August.

    Anvil has already completed a significant amount of infrastructure work on both the Zambian and the DRC sides of Lake Moero, including the refurbishment of the access road to the mine site.

    During the last four weeks, construction activity has moved from building the concentrate barge and associated docking facilities to the Dikulushi mine site itself.

    At the Dikulushi site, all civil works except for the crusher circuit ROM wall have been completed.

    The plant earthworks, plant roads and the powerlines to the contractors’ camp are also completed.

    The erection of the contractors’ camp is 65% complete and construction work has started on the mine contractors workshops, plant workshops and stores, water reticulation and assay laboratory building foundations.

    The major plant items (HMS plant, three stage crusher circuit and electrical power generating units) are now on site at Dikulushi or in Nchelenge awaiting the completion of foundations before being transported across Lake Moero to the mine site.

    Mechanical, structural and platework erection crews were mobilised to site during the first week of July to begin work on the crushing facility and the process and raw water tanks.

    A 35-ton all-terrain mobile crane was mobilised to the plant site at the end of June in readiness for the erection of the HMS plant and crusher circuit.

    Practical completion for stage one is expected to be achieved by August 15.

    Other contractors on the project include Stanley Mining Services, which has been awarded the production and near mine exploration drilling contract.

    The company last month mobilised a drill rig to site to start drilling of the open pit dewatering bore holes and the initial RC grade control drilling programme.

    African Explosives of Zambia has been awarded the blasting contract for an initial period of two years.

    Also, the permit from the DRC authorities for Anvil to establish an on-site magazine and import explosives has been granted.

    Swiss metal trading group Republic House has been awarded the offtake contract for concentrate production from Dikulushi.

    The agreement with Republic House is a partnering arrangement that will see the concentrates toll-processed through smelters in Southern Africa.

    Republic House will purchase the concentrate as principal and will provide Anvil with a trade financing facility that will see cashflows to Anvil start as soon as concentrates are delivered to a smelter in Southern Africa.

    The terms and conditions of the off-take contract with Republic House are more attractive than those previously contemplated.

    Anvil drew down a further $1-million from the RMB Resources Project Financing Facility of $4,5-million, bringing the drawdown to date to $1,8-million.

    Anvil has current cash reserves of A$1,7-million, an undrawn convertible note facility from major shareholder First Quantum Minerals of $500 000, and readily tradeable shares in Golden Star Resources with a current value of about A$2-million.

    In addition, Anvil has in place a fully funded cost over-run facility of $500 000 for the stage one development.

    It is believed that the company has more than ample funds available to complete stage one of the Dikulushi project and adequate working capital for the ramp up of first production.

    The stage one development involves an open pit mining operation and heavy media separation processing, using ferrosilicon dense medium to produce a high-grade concentrate with an average grade of 40% copper and 1,230 g/t silver.

    The first shipment of concentrates is expected during the second week of September, with the first project cashflow before the end of the same month.

    Dikulushi has an independently audited measured, indicated and inferred resource (at a 2% Cu cut-off) of 1,94-million tons 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 returning 16,7 m of 16% copper and 522 g/t silver at a vertical depth of only 165 m, potential exists to significantly increase the resources of this deposit and extend the mine life well beyond its current eight years.

    The HMS approach is expected to produce a concentrate grading of about 40% copper and 1,230 g/t silver.

    Subsequent expansion, with the addition of a ball mill and flotation circuit (stage two) would be largely funded out of project cashflows and would produce a very high-grade concentrate averaging 60% copper and 1,935 g/t silver.




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