Anvil Mining Limited - Update on Progress of the Kinsevere Copper Mine



    TSX, ASX: AVM
    Common shares outstanding: 70.4 million
    All amounts are expressed in US dollars, unless otherwise stated.

    MONTREAL, Oct. 23 /CNW/ - Anvil Mining Limited (TSX, ASX: AVM) ("Anvil"
or the "Company") is pleased to provide an update on the progress of the
Stage I and Stage II developments at its Kinsevere copper mine located 27km
north of Lubumbashi, the provincial capital of the Katanga Province in the
Democratic Republic of Congo ("DRC"). Photos of the plant and other aspects of
the Kinsevere operations can be viewed by accessing the following link:
http://www.anvilmining.com/files/071023_Kinsevere_Stage_I_and_II_Update__photo
s_only_.pdf

    
    Highlights

    -   Heavy Media Separation ("HMS") plant successfully commissioned in
        June 2007.

    -   Design capacity of 500,000 tonnes of ore throughput per year, or
        1,380 tonnes per day and 25,000 tonnes per annum copper production
        was achieved in August 2007.

    -   Copper production of 6,622 tonnes for the period June 9, 2007 to
        September 30, 2007.

    -   Commissioning of the Electric-Arc Furnace ("EAF") scheduled to
        commence in December 2007, ramping up to full operation in the first
        quarter 2008.

    -   The new 27 km 120kV transmission line will be energised in Q4 2007.

    -   Open pit mining has operated at full capacity since January 2007.

    -   Appointment of Ausenco Limited from Australia as the provider of
        Engineering, Procurement, Construction and Management ("EPCM")
        services for the Stage II development.

    -   Work on Stage II has commenced with site clearing completed,
        preparation of foundations in progress and procurement of major
        capital items underway.
    


    The Stage I development of Kinsevere comprises an open pit mining
operation which commenced during the first quarter of 2007 with the Tshifufia
and Tshifufiamashi pits, the construction of a Crushing and HMS plant which
was commissioned in June 2007 and an EAF, the commissioning of which is
expected to be completed during the first quarter of 2008. The HMS-EAF plant
is expected to produce approximately 23,000 to 25,000 tonnes per annum of
"black copper" ingots assaying 90%-93% copper.

    Commissioning of HMS Plant

    The first copper concentrates from the HMS plant were produced on June 9,
2007 with production at design capacity achieved during August 2007. The HMS
product is a coarse grained malachite concentrate averaging approximately 27%
copper. Optimization work on the Crushing and HMS circuits is ongoing. The
design of the Crushing and HMS plant was undertaken by Intermet Engineering of
Perth.

    Electric-Arc Furnace Construction

    Civil works for the EAF are nearing completion and the furnace building
has been erected with final cladding in progress. Shipment of mechanical
equipment and EAF components is ongoing and is expected to be completed within
six to eight weeks. The commissioning of the EAF is planned to commence during
the fourth quarter of 2007 and conclude during the first quarter of 2008. The
design of the two 7.5MW EAFs was undertaken by Keech Furnace Technologies of
South Africa.

    
    Production at Kinsevere

    Production from the start of commissioning on June 9, 2007 to September 30
is as follows:

          ------------------------------------------------------------
                             KINSEVERE PRODUCTION
                                 YEAR TO DATE
                          (June 9-September 30, 2007)
          ------------------------------------------------------------
           Ore crushed (tonnes)                               134,827
          ------------------------------------------------------------
           Copper grade (% Cu)                                   7.45
          ------------------------------------------------------------
           Contained copper in ore (tonnes)                    10,045
          ------------------------------------------------------------
           Total copper recovery (%)                             65.9
          ------------------------------------------------------------
           Concentrate produced (tonnes)                       23,425
          ------------------------------------------------------------
           Copper produced in concentrates (tonnes)             6,622
          ------------------------------------------------------------
    

    Mining operations to date have been carried out without the need for
drilling and blasting as both ore and waste are very weathered. The higher
clay content in the ore has caused some crushing and screening issues which
are expected to be solved by the purchase of a Coarse Material Washer ("CMW")
which will be installed in the secondary/tertiary crushing circuit in order to
allow all ore types to be processed and to increase throughput. The CMW will
be delivered to site during October 2007 and it is anticipated that it will be
commissioned during the early part of November 2007.

    Connection to DRC Hydro-electric Power Grid Nearing Completion

    A Power Purchase Agreement was signed in September 2007 with Société
Nationale d'Electricité, the DRC government electricity company, for the
supply of 39.5MW of hydro-electrical power. A 27 kilometre 120kV transmission
line has been erected between the mine site and Lubumbashi and associated
connection infrastructure is currently being completed. The new transmission
line will be capable of fully supporting the power demands of the planned
Stage II development of a 60,000 tonnes per year Solvent Extraction
Electro-Winning ("SX-EW") plant. On-site diesel powered generators are
providing the electrical power needs for the mine until the 120kV transmission
line is energised.
    Construction of a new 24km mine access road alongside the 120kV
transmission line is nearing completion and will result in a substantial
reduction of traffic through villages located on the refurbished access road
located further to the west.

    Mining at Kinsevere

    Open pit mining on both the Tshifufia and Tshifufiamashi deposits has
operated at full capacity since January 2007. Substantial advance waste
stripping at the Tshifufia pit had been completed by June and this has
provided the Company with significant flexibility in its mining operations and
increased ability to blend ore feed to the HMS plant. The tailings dam is now
operational and allows for storage of the fine effluent from the concentrator.
    The tailings (average grade of 2.9% copper) are retained in the tailings
dam, and the HMS floats (average grade 4.3% copper) are being stockpiled. Both
of these reject products will be subsequently re-processed through the
Stage II SX-EW plant.
    As of September 30, 2007, the Kinsevere stockpile of high-grade and
medium-grade copper ores available for processing through the HMS plant and
Stage II SX-EW plant were as follows:

    
    ------------------------------------------------------------------------
                             KINSEVERE STOCKPILES
                         (as at September 30, 2007)
    ------------------------------------------------------------------------
                             Tonnes     Average Copper    Contained Copper
                                           Grade (%)         (tonnes)
    ------------------------------------------------------------------------
    High-grade               56,150           7.6              4,267
    ------------------------------------------------------------------------
    Medium-grade            279,077           3.7             10,326
    ------------------------------------------------------------------------
    Total high-grade &
     medium-grade           335,227           4.3             14,593
    ------------------------------------------------------------------------
    Low-grade               196,203           1.2              2,433
    ------------------------------------------------------------------------

    Production Profile for Stage I

    The production profile of the Stage I HMS and EAF processing plant, up to
the commissioning of the SX-EW plant in mid-2009, is expected to be as
follows:

    ------------------------------------------------------------------------
                              KINSEVERE STAGE I
                         TARGETED PRODUCTION PROFILE
    ------------------------------------------------------------------------
                                                   June - Dec.    Full Year
                                                      2007           2008
    ------------------------------------------------------------------------
    Total ore mined (tonnes)                         808,000      1,949,000
    ------------------------------------------------------------------------
    Average copper grade (% Cu)                        5.2            5.4
    ------------------------------------------------------------------------
    Ore Treated (tonnes)                             270,000        702,000
    ------------------------------------------------------------------------
    Average copper grade (% Cu)                        7.4            7.1
    ------------------------------------------------------------------------
    Average copper recovery (%)                         61             57
    ------------------------------------------------------------------------
    Tonnes of "black copper" ingots
     or copper in concentrate produced                12,200         28,400
    ------------------------------------------------------------------------
    

    Kinsevere Stage II

    In April 2007, following completion of a feasibility study, the Board of
Directors approved the Kinsevere Stage II development at a capital cost of
$238 million. The Stage II development, which involves construction of a
60,000 tonnes per year SX-EW plant, will produce LME Grade A quality copper
cathode directly at the mine site.
    There are a number of important synergies between the Stage I and
Stage II projects, with key aspects of the infrastructure developed for
Stage I to be used during Stage II. For example, tailings from the Stage I HMS
plant will be reprocessed through the SX-EW plant; the power line being
constructed for the purpose of providing electrical power for Stage I will
deliver sufficient power to support the Stage II 60,000 tonnes per year SX-EW
plant, and parts of the front end crusher for Stage I have been designed to
allow for the higher level of throughput required for Stage II.
    In early July, the Company announced the appointment of Ausenco Limited
from Australia as the provider of Engineering, Procurement, Construction and
Management services for the Kinsevere Stage II development. This work has
already commenced, with clearing of the site now completed and excavation
works and preparation of foundations well underway. A contract for the
placement of major concrete foundations has been awarded. Many of the
equipment specifications have been finalised and the tendering and procurement
process for major capital items is in progress with orders already placed for
the ball mill, thickeners, apron feeder and mineral-sizer.

    Kinsevere Mineral Resources

    The Phase 3 drilling program comprised of 45,367 metres of Reverse
Circulation, Diamond and Air-core drilling was completed in June 2007. The
main purpose of this drilling program was to complete the infill drilling at
the Tshifufia and Tshifufiamashi deposits and carry out the initial Reverse
Circulation and Diamond drilling on the area referred to as the Kinsevere Hill
Extension. An updated Mineral Resource estimate is expected to be announced
before year-end.

    Community Development at Kinsevere

    Anvil's commitment to implementing sustainable community development at
Kinsevere continues to be executed in conjunction with the Company's social
development partner, Pact Inc., ("Pact") an International Development Agency.
The Company's community development projects continue to address the local
communities' needs for basic infrastructure and economic development, with
clean water, health and education the primary components of the Company's
community development program.
    Following the successful commissioning of 13 water boreholes in
surrounding villages, construction of two schools and a health facility began
last month. Programs to increase food crop production, adult savings and
literacy are also in place and the construction of a new market is scheduled
for later this year. The commencement of early works on Kinsevere Stage II has
resulted in the Company undertaking a number of "in-community recruitment
drives" to support the development of Kinsevere Stage II and in the past
month, 80 labour positions have been filled. This is consistent with the
Company's goal of maximizing local employment. Looking forward, the Company's
community development programs will continue to focus on building the capacity
of local communities to benefit from the Company's current and future
operations.
    The Company's 95% interest in the Kinsevere copper mine is held by AMCK
Mining sprl ("AMCK"), a Joint Venture company involving Anvil (95%) and Mining
Company of Katanga (5%).

    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 DRC.

    Additional Notes: The information in this news release that relates to
engineering and construction works has been reviewed by Mike Newman, Anvil's
Vice President Project Development. Mike Newman is a Chartered Engineer and a
member of the Institute of Mechanical Engineers. Mike Newman has consented to
the inclusion of such information in this news release in the form and context
in which it appears.

    Caution Regarding Forward Looking Statements: The forward-looking
statements made in this news release are based on assumptions and judgments of
management regarding future events and results. Such forward-looking
statements, including but not limited to those with respect to the operations
of the construction and development of a 60,000 tonnes per year SX-EW plant
and Electric-Arc Furnace and hydro-electric power grid at Kinsevere and its
capital expenditures and estimated future production and operating cash costs
involve known and unknown risks, uncertainties, and other factors which may
cause the actual results, performance or achievements of the Company 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, the actual
results of current exploration, the actual results of future mining,
processing and development activities, changes in project parameters as plans
continue to be evaluated, as well as those factors disclosed in the Company's
filed documents.

    %SEDAR: 00020549E




For further information:

For further information: Craig Munro, 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

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Anvil Mining Limited

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