(AEAVM) Anvil completes updated feasibility study at Kinsevere4...

(AEAVM) Anvil completes updated feasibility study at Kinsevere

4 February 2008
Source: Ralph Wragg Australian Business News


Sydney - Monday - February 4: (RWE Aust Business News) - Anvil Mining Ltd (ASX:AVM) has completed an updated feasibility study for the Stage II Solvent Extraction and Electrowinning (SX-EW) development at its Kinsevere copper project as a result of completion of a 45,370 metre drilling program during 2007.

Completion of this drilling program has allowed for an increase of 34 per cent in Measured and Indicated Mineral Resources and a subsequent 32 per cent increase in the Proven and Probable Mineral Reserves.

The feasibility study follows a preliminary study prepared by the company in April on the establishment of a 60,000 tonnes per annum capacity SX-EW processing plant and includes several enhancements to the Stage II processing flow-sheet and adjustments to the overall project capital costs.

The updated Mineral Resource estimate for the Kinsevere copper project focuses on the Tshifufia, Tshifufiamashi and Kinsevere Hill deposits, with subsequent completion of revised mine planning and new Mineral Reserve estimates.

Exploration at the nearby Kinsevere northwest extension is ongoing and it is now expected that a Mineral Resource estimate for these deposits will be completed during the second quarter of 2008.

The feasibility study was undertaken on the basis that the existing Stage I Heavy Media Separation plant will close once the Stage II plant is commissioned in 2009.

The feasibility study further envisages that the associated Electric-Arc Furnace will be converted to treat sulphide concentrates from the company's Dikulushi mine.

Against this background, the feasibility study reported a combined Stage I and Stage II life of operations of 16.5 years, producing a total of 882,500 tonnes of copper metal as "black copper" ingots assaying 90 to 93 per cent Cu and LME grade A quality cathode copper, respectively.

The average total operating costs are expected to be 99c/lb Cu produced, including depreciation and royalties (24c/lb Cu).

Using a longer term copper price of $1.43/lb Cu and a discount rate of 10 per cent, the economic analysis yielded a Net Present Value of $281 million, an internal rate of return of 39 per cent and a payback period of 5.2 years.