Anvil Mining - Record Production for Fiscal Year 2007 and 2008 Capital Expenditures and Outlook



    TSX, ASX: AVM
    Common shares outstanding 71.1 million
    All amounts are expressed in US dollars, unless otherwise stated.

    MONTREAL, Jan. 23 /CNW/ - Anvil Mining Limited (TSX, ASX: AVM), ("Anvil"
or the "Company") and including its subsidiaries (the "Group") is pleased to
announce record full year consolidated production of 47,633 tonnes of copper
and 2.45 million ounces of silver contained in concentrates from its
Dikulushi, Kinsevere and Kulu mines in the Democratic Republic of Congo
("DRC"). For the fourth quarter of 2007, the Company also reached record
production with 16,877 tonnes of copper and 0.7 million ounces of silver.
    Bill Turner, President and Chief Executive Officer of Anvil, commented,
"Again, we delivered a strong operational performance owing to the continued
above-target operational performance at the Dikulushi mine and the start up of
the Kinsevere Stage I HMS plant during the second quarter of 2007. Now, with
three mines in production, the Company expects to produce more than
55,000 tonnes of copper and 1.3 million ounces of silver in 2008."
    Capital and development expenditures for 2008 are estimated to be in the
order of $215 million and will be applied mainly to the construction of the
60,000 tpa Solvent Extraction-Electrowinning ("SX-EW") plant at Kinsevere
($180 million), sustaining capital expenditures for our three operations
($20 million) and exploration ($15 million).
    Based on its 2008 targeted production and in conjunction with the
Company's cash, cash equivalents, investments and borrowing capacity
(currently no debt), the Company anticipates that it will have sufficient
financial resources to meet its 2008 and 2009 development plans.

    
    Mine Production Target 2008

    -------------------------------------------------------------------------
                        2008 TARGETED MINE PRODUCTION
    -------------------------------------------------------------------------
                                  Dikulushi       Kulu  Kinsevere      Total
    -------------------------------------------------------------------------
    Total copper production
     (tonnes)                        16,500     12,700     25,800     55,000
    -------------------------------------------------------------------------
    Silver production (ozs)       1,300,000          -          -  1,300,000
    -------------------------------------------------------------------------
    

    Mine Production and Development

    Dikulushi mine (90%)

    Mining and processing operations at the Dikulushi mine continued to
produce at more than 10% above design capacity of 20,000 tonnes of contained
copper per annum during the fourth quarter of 2007, with production of
6,943 tonnes of copper contained in concentrates and 0.7 million ounces of
silver contained in concentrates. Dikulushi mine production for the past four
quarters was as follows:

    
    -------------------------------------------------------------------------
                    DIKULUSHI MINE PRODUCTION BY QUARTERS
    -------------------------------------------------------------------------
                           March       June  September   December       Full
                         Quarter    Quarter    Quarter    Quarter       Year
                            2007       2007       2007       2007       2007
    -------------------------------------------------------------------------
    Total ore
     processed
     (tonnes)             87,262     85,480     88,574     92,121    353,437
    -------------------------------------------------------------------------
    Copper head
     grade (% Cu)            7.0        7.7        7.7        8.0        7.7
    -------------------------------------------------------------------------
    Copper recovery (%)       89         91         91         92         91
    -------------------------------------------------------------------------
    Copper produced
     in concentrates
     (tonnes)              5,469      5,951      6,198      6,943     24,561
    -------------------------------------------------------------------------
    Silver produced
     in concentrates
     (ounces)            537,858    583,269    612,739    717,402  2,451,269
    -------------------------------------------------------------------------
    

    Transition to Underground Mining at Dikulushi is Complete

    Feed to the plant through the year was sourced mainly from blended
Run-of-Mine ("ROM") open pit stockpiles of high-grade and low-grade ore.
Production from the underground mine began in the third quarter of 2007 and is
being ramped up, with full production of approximately 900 tonnes per day
expected to occur during the first quarter of 2008. During 2008, the plant is
expected to treat 367,500 tonnes at an average copper grade of 5.2% to produce
16,500 tonnes of copper and 1.3 million ounces of silver contained in
high-grade concentrates.

    Kulu Tailings Operation (80%)

    The Kulu Heavy Media Separation ("HMS") processing operation produced a
total of 3,551 tonnes of copper contained in oxide concentrates for the fourth
quarter of 2007. Kulu mine production for the past four quarters was as
follows:

    
    -------------------------------------------------------------------------
                       KULU MINE PRODUCTION BY QUARTERS
    -------------------------------------------------------------------------
                           March       June  September   December       Full
                         Quarter    Quarter    Quarter    Quarter       Year
                            2007       2007       2007       2007       2007
    -------------------------------------------------------------------------
    Total ore processed
     (tonnes)             80,245     74,987     87,342     98,054    340,628
    -------------------------------------------------------------------------
    Copper head
     grade (% Cu)            6.0        4.6        5.1        5.0        5.1
    -------------------------------------------------------------------------
    Copper recovery (%)       53         45         55         73         57
    -------------------------------------------------------------------------
    Copper produced
     in concentrates
     (tonnes)              2,558      1,525      2,432      3,551     10,066
    -------------------------------------------------------------------------
    

    An unseasonally heavy rainy season and continued artisanal mining
activity in the lower areas of the river resulted in the removal of some of
the high-grade portion of the coarse-grained tailings, leaving a lower-grade
material which had correspondingly lower metallurgical recoveries, for feed
through the HMS plant. Enhancements to the mining methodology and an upgrade
to the plant with a new enlarged desliming screen, along with a new mining
contractor in the fourth quarter of 2007 have improved operational efficiency
and copper recovery.
    It is expected that in 2008 the HMS plant will treat 444,000 tonnes of
material at an average grade of 4.8% copper for the production of 12,700
tonnes of copper in concentrates. This includes the reprocessing of lower
grade concentrates expected to be purchased during the first half of the year
from artisanal miners (approximately 33,000 tonnes at 18% copper).
    During the second quarter of 2008 the Company expects to complete a
feasibility study for the construction of an expandable 15,000 tpa SX-EW
processing facility, which when combined with dredging as the mining method,
is expected to improve overall recoveries.

    Kinsevere Mine (95%)

    Kinsevere is the third copper mine that the Company has brought into
commercial production in the DRC. The HMS plant was successfully commissioned
in the second quarter of 2007 and its design capacity of 1,380 tonnes per day
(500,000 tonnes per year) was reached in the third quarter to produce at an
annual rate of 23-25,000 tonnes of copper. For the fourth quarter, the
Kinsevere mine produced 6,384 tonnes of copper contained in concentrates.
Kinsevere mine production since the start of operations in June 2007 was as
follows:

    
    -------------------------------------------------------------------------
                   KINSEVERE MINE PRODUCTION(1) BY QUARTERS
    -------------------------------------------------------------------------
                                     Second      Third     Fourth
                                    Quarter    Quarter    Quarter       Year
                                       2007       2007       2007       2007
    -------------------------------------------------------------------------
    Total ore processed (tonnes)(2)   8,367     72,639     92,155    173,161
    -------------------------------------------------------------------------
    Copper grade (% Cu)                 9.0       10.9       10.2       10.5
    -------------------------------------------------------------------------
    Contained copper ore (tonnes)       755      7,951      9,448     18,154
    -------------------------------------------------------------------------
    Copper recovery (%)                  63         77         68         72
    -------------------------------------------------------------------------
    Copper produced in
     concentrates(3) (tonnes)           480      6,142      6,384     13,006
    -------------------------------------------------------------------------
    (1) Kinsevere commenced production in June 2007
    (2) Ore processed at Kinsevere relates to ore processed through the
        HMS plant
    (3) Grade of concentrates is approximately 27% copper
    

    The Kinsevere Stage I development is near completion with the
energization of the new 27 km 120KV transmission line which connects the
Kinsevere mine to the DRC national hydro-electric grid expected to occur
during February. The commissioning of the two Electric-Arc Furnaces ("EAF")
that comprise the final phase of the Stage I development is scheduled to occur
during the first quarter of 2008. Annualised production from the Stage I
development (HMS-EAF) is expected to be over 23,000 tonnes of "black copper"
at an average grade of 93% copper and a recovery of 92%. Stage I has been
designed to include a number of important infrastructure items necessary for
Stage II, including a 120KV transmission line to connect to the national
hydro-electric grid network and the over-sizing of parts of the front-end
crusher circuit in order to allow for the higher levels of throughput required
for Stage II.
    For 2008, Kinsevere target production is 25,800 tonnes of copper, over
90% of which is expected to be in the form of "black copper" grading
approximately 93% copper.
    Capital expenditures for Kinsevere in 2008 are estimated at $180 million,
the majority of which is for the Stage II 60,000 tpa SX-EW plant which is
designed to produce LME Grade A quality copper cathode directly at the mine
site.

    Exploration

    During 2007, the Company's exploration program conducted drilling of
53,128 metres at Kinsevere, Dikulushi and Mutoshi in the Kolwezi region, the
majority of which was focused on the Phase 3 drilling program at Kinsevere.
    The Phase 3 drilling program at Kinsevere comprised of 45,367 metres of
Reverse Circulation ("RC"), Diamond and Air-core ("AC") drilling which was
completed in June 2007. The main purpose of this program was to complete the
infill drilling at the Tshifufia and Tshifufiamashi deposits and carry out the
initial RC and Diamond drilling on the area referred to as the Kinsevere Hill
Extension. An updated Mineral Resource estimate for Kinsevere including the
Kinsevere Hill Extension is expected to be announced during March 2008.
    The Company plans to spend approximately US$15 million on exploration
activity in 2008, and complete approximately 87,000 metres of RC, Diamond and
AC drilling. The focus of this drilling activity will be on Kinsevere
sulphides, Dikulushi, and several sites at Mutoshi in the Kolwezi region.

    DRC Commission for Review of Mining Contracts

    As of the date of this news release, the DRC Minister of Mines or the
Commission established by the Government of the DRC to review mining contracts
or any other governmental body of the DRC, has not issued a final report or
otherwise publicly announced the results of the Commission's work. Anvil
understands that the Commission has reported to the Minister of Mines, but
cannot advise when the final report and the results of the Commission's work
or any decision of the Government in this regard will be publicly released.
Anvil confirms that, to date, it has received no written communication from
the Minister of Mines or the Commission or any other governmental body of the
DRC with respect to renegotiation or termination of any agreement to which
Anvil or any of its subsidiaries is a party, or any mining tenure which Anvil
or any of its subsidiaries holds. Anvil remains hopeful that the DRC
government will publicly release the results of the Commission's work as soon
as possible.

    Anvil Mining Limited is an unhedged copper and silver producer whose
shares are listed for trading on the Toronto Stock Exchange (as common shares)
and the Australian Stock Exchange (as CDIs) under the symbol AVM. It has
majority interests in and operates the Dikulushi copper-silver mine, the
Kinsevere copper mine, and the Kulu copper tailings operation in the Katanga
Province of the Democratic Republic of Congo.

    Caution Regarding Forward Looking Statements: The forward-looking
statements made in this news release are based on management's assumptions and
judgments regarding future events and results. Such forward-looking
statements, including but not limited to those with respect to the Company's
plans for expansions of the Kinsevere copper mine and estimated future
production at the Dikulushi, Kulu and Kinsevere mines, involve known and
unknown risks, uncertainties and other factors which may cause the Company's
actual results, performance or achievements to be materially different from
any anticipated future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include, among
others, the actual market prices of copper, changes in project parameters as
plans continue to be evaluated, and the possibility of schedule delays and
cost overruns, as well as those factors disclosed in the Company's filed
documents. There can be no assurance that the Stage II expansion of the
Kinsevere copper mine will proceed as planned or be successfully completed
within expected time limits and budgets or that, when completed, the expanded
facility will operate as anticipated.

    %SEDAR: 00020549E




For further information:

For further information: Craig Munro, Senior Vice President Corporate &
CFO, Tel: +61 (8) 9481 4700, Email: craigm@anvilmining.com (Perth); Robert La
Vallière, Vice President Investor Relations, Tel: (Office) (514) 448-6664,
(Cell) (514) 944-9036, Email: robertl@anvilmining.com (Montréal); Website:
www.anvilmining.com

Organization Profile

Anvil Mining Limited

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890