Anvil Mining Recommences HMS Production at Kinsevere - Announces 2009 Outlook and Current Cash Position



    NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES

    TSX, ASX: AVM

    Common shares outstanding 71.2 million

    All amounts are expressed in US dollars, unless otherwise stated

    MONTREAL, April 13 /CNW Telbec/ - Anvil Mining Limited (TSX, ASX: AVM),
("Anvil" or the "Company"), today announced the Company has recommenced
operation of the Kinsevere Heavy Media Separation ("HMS") processing plant and
shut down the Electric-Arc Furnace ("EAF") located at Kinsevere. The Company
also provided guidance for its 2009 production, operating costs and capital
expenditures, as well as its current cash position resulting from the
progressive liquidation of its available-for-sale-investments.
    The Kinsevere HMS plant was restarted on March 27, 2009 and in the first
10 days of operation produced approximately 1,645 tonnes of concentrate at an
average grade of 26% copper, yielding 430 tonnes of copper in concentrate.
Overall average copper recovery was 57.3%. The HMS plant is expected to
produce approximately 8,900 tonnes of copper contained in concentrates through
to Q3 2009, at an operating cash cost at the mine gate of $0.50/lb Cu (after
sunk costs). The Company also has existing stockpiles of copper concentrates
at Kinsevere of approximately 16,700 tonnes grading 27% copper, previously
destined for EAF processing, now ready for immediate sale.
    Feed to the Kinsevere HMS plant is being sourced from the Run of Mine
("ROM") stockpile (located in close proximity to the crusher), comprising
259,000 tonnes of ore grading 5.7% copper. Subject to favourable copper prices
and metallurgical recoveries, additional feed is potentially available from
the Stage II stockpiled ore, which currently amounts to more than one million
tonnes at an average grade of 2.9% copper. The Company is also considering the
possibility of resuming open pit mining to supplement HMS plant feed into
2010.
    The Kinsevere HMS Production Outlook (April to Q3 '09) is as follows:

    
    Ore processed:                                            259,000 tonnes
    Copper feed grade:                                               5.7% Cu
    Contained copper:                                          14,800 tonnes
    Average Cu copper recovery:                                          60%
    Copper produced in concentrate:                             8,900 tonnes
    Operating cash cost (ex-mine gate)(*):                          $0.50/lb
    Existing concentrate stockpile:                            16,700 tonnes
    Grade of existing concentrate stockpile:                          27% Cu
    Contained copper in existing stockpile:                     4,500 tonnes
    Total 2009 copper in concentrates+:                        13,400 tonnes
    (*) Sunk costs on available ROM feed = $0.11/lb.
     + Future HMS Production plus existing concentrate stockpile.
    

    The Company has entered into contracts to sell the HMS concentrate
production and the existing concentrate stockpile, at the Kinsevere mine gate.
Under the terms of these contracts the Company will receive 40% of the LME
copper price for concentrate with a grade in excess of 25% copper.

    Cost Cutting

    Bill Turner, President and CEO of Anvil, commented, "We are continuing to
execute the cost cutting measures commenced during the fourth quarter of 2008
in response to the fall in metal prices and deterioration of financial
markets. The recommissioning of the Kinsevere HMS plant has been a relatively
straight forward exercise which will produce a stronger cash flow stream in a
shorter time than would have been possible with the continued operation of the
EAF. Furthermore, operating costs have been reduced to a minimum in order to
maximise the cash flow from this operation."

    2009 Capital Expenditures

    Budgeted capital expenditure for 2009 has been reduced to the minimum
necessary to sustain the operation of the Kinsevere HMS plant. All other
capital expenditure programs, including exploration, have been placed on hold
for the remainder of 2009.
    The capital expenditure required to complete the Kinsevere Stage II
solvent extraction electro-winning ("SX-EW") plant is approximately $200
million and efforts to procure funding to allow the recommencement of
construction are ongoing.

    Cash and Liquidity

    Following Board approval in March 2009, the Company has commenced the
process of liquidating its portfolio of available-for-sale investments, which
have an estimated liquidation value, at today's prices, of approximately $18.0
million. The first stage of this process is expected to generate approximately
$14.0 million, of which almost $8.5 has already been realized. A provision of
approximately $5.0 million for further impairment of the value of these
investments since December, 2008 is expected to be recorded in the first
quarter 2009 financial results.
    As at April 8, 2009, the Company had cash reserves of $33.7 million,
available-for-sale investments with a current value of $9.5 million and $3.0
million of receivables that are expected to be realized during the second
quarter of 2009. These amounts, together with cash generated from operations,
will be applied to discharge liabilities payable and accrued (the most
substantial of which include shut down costs for operations placed on care and
maintenance, retrenchment payments to redundant employees and "Pas de Porte"
payments to Gécamines). To the extent of any shortfall in meeting these
obligations, the Company may seek to renegotiate the amounts and timing of its
liabilities and/or obtain additional financing by way of issuing debt or
equity.
    Anvil Mining Limited is an unhedged copper producer whose shares are
listed for trading on the Toronto Stock Exchange (as common shares) and the
Australian Securities Exchange (as CDIs) under the symbol AVM.

    Non-GAAP Financial Measures:

    In this news release, we use the term "operating cash costs." Operating
cash costs are defined as the sum of the costs attributed to geology, mining,
processing plant, general and administration costs as well as royalties,
refining and treatment charges and sales costs, but with respect to
concentrate sales do not include refining, treatment charges and sales costs.
We use operating cash costs per pound as an operating indicator. We provide
this measure to our investors to allow them to also monitor mine operational
efficiencies. Operating cash costs per pound should be considered as non-GAAP
Financial Measure and should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with GAAP. There are
material limitations associated with the use of such non-GAAP Financial
Measures. Since these measures do not incorporate revenues, changes in working
capital and non-operating cash costs, they are not necessarily indicative of
operating profit or cash flow from operations as determined under GAAP.
Changes in numerous factors including without limitation, mining rates,
milling rates, copper grades and recoveries, and the costs of labour,
consumables and mine site operations general and administrative activities can
cause these measures to increase or decrease.

    Caution Concerning Forward-Looking Statements:

    This news release contains forward-looking statements and forward-looking
information within the meaning of applicable securities laws. Such
forward-looking statements or information include expected plans for continued
operations at the Kinsevere mine using the existing HMS Plant, the Company's
intention to continue to seek to finance the construction of the Kinsevere
Stage II SX-EW Plant, the Company's anticipated cash position and the
Company's anticipated production and operating cash costs for 2009 at
Kinsevere. In making the forward-looking statements and providing the
forward-looking information, we have made numerous assumptions. Although
management believes that the assumptions made and the expectations represented
by such statements or information are reasonable, there can be no assurance
that the forward-looking statements will prove to be accurate. Forward-looking
statements and information involve known and unknown risks, uncertainties and
other factors that may cause our actual results to be materially different
from those expressed or implied by such forward-looking statements and
information. Such risks, uncertainties and other factors include among other
things, declines in the price of copper, capital and operating cost increases,
changes in general economic and business conditions, including changes in
interest rates and the demand for base metals, economic and political
instability in the DRC, discrepancies between actual and estimated production
and mineral reserves and resources; operational and development risk; and
regulatory risks.
    Readers should not place undue reliance on forward-looking statements or
information. We undertake no obligation to reissue or update forward-looking
statements or information as a result of new information or events after the
date hereof except as may be required by law. See our annual information form
for additional information on risks, uncertainties and other factors relating
to the forward-looking statements and information. All forward-looking
statements and information made in this news release are qualified by this
cautionary statement.
    %SEDAR: 00020549E




For further information:

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

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Anvil Mining Limited

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