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  1. janart

    206 Posts.

    And I found this article on Minesite. Cheers John.

    July 25, 2002

    Anvil Mining Could Be Heading For London Once Production In DRC Is Underway.

    Australian investors still find it hard to warm to projects in darkest Africa and this may be why little attention is being paid to Anvil Mining which is just about to start production at its Dikulushi copper-silver project in the Democratic Republic of Congo which is claimed to be the highest grade in the world.. Our man in Oz reckons that the cynicism about operating in such countries runs so deep that the stock will not start to reflect this achievement until at least two quarterly results have confirmed that cash flow is being generated. In the meantime, presumably, they await news daily that the DRC government has taken over the mine and thrown the workers to the crocs.

    Such a view ignores the big strides that have been made in the country since Joseph Kabila came to power as Tim Reed, president and CEO of Canadian listed America Mineral Fields, pointed out a week ago when his company took over the rest of the Kolwezi cobalt-copper tailings project from Anglo American. He professes growing confidence for the future of the country, and for the mining companies operating therein, now that Kabila’s government has got inflation under control and is getting full backing from the World Bank with whose help it has just produced a new mining code.

    Anyway the other bit of good news is that managing director Bill Turner will be doing a roadshow in Europe before Christmas. Anvil has already got a listing in Berlin but this may have been a result of a rush of blood a year or two ago when the Germans were doling out listings for the price of a couple of beers. Since then, however, the lucky listees have discovered that not a share gets traded from one month’s end to another. Which is a pity as Anvil’s Dikulushi project contains a resource of 1.94 million tonnes grading an average of 8.58% copper and 266 g/t silver and reserves are currently 1.55 million tonnes at 8.95% copper and 289 g/t silver.

    The deposit is open at depth with one of the deepest drillholes intersecting 17.6 metres of 16% copper and 522 g/t silver at a vertical depth of 165 metres. The plan is to exploit the deposit in three stages. First by open pit mining and heavy media separation to produce a copper/silver concentrate. Ball mill and flotation will then take over to produce a higher grade concentrate. And in the last stage mining will go underground for a long life operation. The first stage is now on track for completion by early August with initial production of the 40% copper/1,230g/t silver concentrate due before the end of that month.

    Originally the plan was to transport a fair bit of the concentrate to First Quantum’s Mufulira smelter in Zambia as the high iron and sulphur content would add to the efficiency of that operation. That smelter, however, is now going flat out and has no surplus capacity so an offtake agreement has been arranged with a Swiss metal trading group called Republic House which will take the concentrate to Palabora in South Africa. The concentrate is so rich that the extra distance will not have a huge impact on costs and Palabora is said to have better facilities for dealing with precious metals.

    First Quantum, which is listed in Toronto and on AIM, has a 19 per cent stake in Anvil and shares a chairman with it. Every now and then there has been speculation that First Quantum might bid for Anvil and this will reappear once production starts. When last contacted Clive Newall of First Quantum did not think it was a priority. He admitted that his company had considered putting First Quantum’s assets in DRC into the company, but decided against it as First Quantum has a great reputation in government circles and there could be a muddle if the name of the owner of these assets was changed. Either way Anvil has the benefit of a very positive and experienced major shareholder.

    During stage one Dikulushi will process 250,000 tonnes of ore a year to produce 30 million pounds of copper and 1.1 million ounces of silver, but in quite short order it is expected o move on to stage two and this will boost the concentrate grade to 60% copper/1,900 g/t silver. The total production cost even after transport and smelting charges will be less than US$0.40 cents per pound of copper so this will throw off a healthy positive cash flow for Anvil. This open pit operation will last for four years before underground mining takes over and this could last for well over the next four years as there is plenty of potential to increase the resource. London looks forward to the roadshow..

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