Anvil Mining Ltd - Short Positions on 2010/07/15 57,372 -27 July...

Anvil Mining Ltd - Short Positions on 2010/07/15 57,372 -
27 July 2010

Source: Market News Publishing

ANVIL MINING LTD ("AVMNF-0") - Short Positions on 2010/07/15 57,372 -4,707

Anvil Mining Ltd - Short Positions on 2010/07/15 68,721 10,406 2.89

20 July 2010

Anvil Mining Ltd - Short Positions on 2010/06/30 62,079 45,463

13 July 2010


Mawson West sells Dikulushi Cu concs to KCM
Nadia Cavallaro

20 July 2010
Source: Metal Bulletin

Mawson West has sold 700 tonnes of copper concentrates from its Dikulushi mine in the Democratic Republic of Congo (DRC), the first sale since the mine was shuttered in 2008. The concentrate was sold through trading house LN Metals to Konkola Copper Mines (KCM) in Zambia this week, Mawson ceo David Frances told MB, confirming that the rest of the Dikulushi concentrate will go to KCM.
The Dikulushi operation will produce around 18,000 tonnes of copper concentrate over the next 15 months. It was put on care and maintenance by Anvil Mining in 2008 after copper prices plunged. Mawson, an Australia-based copper producer, bought the mine in April. It is using a low-grade stockpile to feed the $2 million refurbished mill which contains around 900,000 oz of silver by-credits.

Mawson is ramping up exploration work near the mine, with production to start in six months, Frances said. "Studies are underway on the remaining in-ground resource at [Dikulushi] to assess the best way to exploit them.
We don't know at what rates these will be extracted at present," he added.

Mawson continues to develop its flagship Kapulo operation which is targeted to produce 20,000 tpy of copper metal over seven years from the second half of 2012. It has not been determined whether concentrate from Kapulo will also be sold to KCM, Frances said.

Mawson is the 65% majority owner of Kapulo, a joint venture with Anvil. Cost of production at Kapulo is currently set at around $1.20 per lb ($2,645 per tonne), but there is potential to bring it down to $1 per lb, Frances said. The company delisted from the Australian Securities Exchange in June last year in order to buy the Dikulushi operation. "At a market cap of A$4.3 million, there was no way we could have undertaken a sensible transaction with Anvil," Frances said. Sydney-based private equity firm Pacific Road Capital Management and Anvil both hold a 24% stake in the company, while Macquarie Bank and Rand Merchant bank each own 5%.

Mawson completed two capital raisings last year - one at $8.5 million and the other at C$7 million ($6.6 million) - to fund Dikulushi. "Both banks are fairly interested in doing some debt financing [to fund Kapulo]," Frances said. The company intends to relist on the Toronto Stock Exchange at around C$100 million, market permitting, Frances said. "There is still some instability in the share market," he said. Mawson prefers the TSX over the ASX due to its larger capital pool, Frances added.

A lack of new copper supply coming to the market will push prices higher in the short term, Frances predicted. "We see that demand for copper is going to remain strong for some time." "While China isn't growing at such a fast rate, their demand is and will be huge," Frances added. LME copper is trading at around $6,500 per tonne after losing $200 over the last four trading days.