TSX, ASX: AVM
Common shares outstanding 158 Million
All amounts are expressed in US dollars, unless otherwise stated.
PERTH, Australia, Jan. 9, 2012 /CNW Telbec/ - Anvil Mining Limited (TSX: AVM) (ASX: AVM), ("Anvil" or the "Company"), today announced that total annual copper production for 2011, including copper in concentrate and cathode, will be approximately 29,000 tonnes. This is marginally below the previous guidance (30,000 - 31,000 tonnes) provided by the Company last November. Technical difficulties experienced with the plant's electrowinning transformers, particularly in the fourth quarter of 2011, account for the above variation and are expected to also result in the ramp-up to full production occurring at the end of the first quarter of 2012 rather than the previous target date of December 2011.
Commenting, Anvil President and CEO Darryll Castle said: "Despite the technical difficulties we've experienced during the build-up of production at Kinsevere, I'm pleased with the progress we have made during 2011. The current efficiency in the tank-house is now close to design specifications and further improvements are expected in January and February as planned equipment improvements are implemented. These achievements have helped to mitigate some of the short-term technical difficulties we've experienced."
The Kinsevere plant's electrowinning tank-house was commissioned earlier in 2011 with four installed transformers and one on-site spare. From the start of commissioning and during the plant's ramp-up in 2011 continuing technical difficulties were experienced with these transformers. Power interruptions in the Democratic Republic of Congo, particularly during December 2011, further impacted the production build-up.
Kinsevere is currently operating on two-and-a-half of its four required transformers. In order to resolve the technical difficulties and mitigate production risk, the Company is working with specialist consultants and contractors to repair failed transformers where possible, and procure new units of a higher specification and improved design. A recently refurbished transformer has been operating without incident and we commenced a process in the third quarter which will result in the replacement of all the transformers. Due to the lead time to acquire replacements, the Company expects the process will be completed towards the end of the first quarter 2012, when we plan to have in operation four new transformers in addition to the two standby units which are currently operational and which will be held as backup.
Anvil Mining Limited is a copper producer whose shares are traded on the Toronto Stock Exchange (as Common Shares) and the Australian Securities Exchange (as CDIs) under the symbol AVM.
Caution Regarding Forward Looking Statements:
This news release contains "forward-looking statements" and "forward-looking information", based on assumptions and judgments of management regarding future events and results. Such "forward-looking statements" and "forward-looking information which may include, but is not limited to, the expectation of a successful ramp-up to full production at the Kinsevere Project. Many of these assumptions are based on factors and events that are not within the control of Anvil and there is no assurance they will prove to be correct. Often, but not always, forward-looking information can be identified by the use of words such as "intends" (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "would", or "will" be taken, occur or be achieved. The purpose of forward-looking information is to provide the reader with information about management's expectations regarding the ramp-up to full production at the Kinsevere Project. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anvil to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. There can be no assurance that forward-looking information will prove to be accurate. Accordingly, readers should not place undue reliance on forward looking information.
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