Press Release Source: Anvil Mining LimitedQuarterly Activities...

Press Release Source: Anvil Mining Limited

Quarterly Activities Report To Australian Stock Exchange Limited For The Fourth Quarter Ended December 31, 2005

Monday January 16, 10:13 am ET

TSX, ASX: AVM Common shares outstanding: 29.1 million All amounts are expressed in US dollars, unless otherwise stated.

PERTH, Australia, Jan. 16 /CNW/ - Anvil Mining Limited (TSX, ASX: AVM - News News), ("Company") and including its subsidiaries ("Group") is pleased to report on the activities of the Group for the fourth quarter ended December 31, 2005 in accordance with ASX Listing Rule 5.1. The audited Financial Statements and Management's Discussion and Analysis required under Canadian National Instrument 51-102 will be available on the SEDAR website at www.sedar.com during the second week of February 2006.

Fourth Quarter Activity Highlights

- Total Group production for the fourth quarter was 7,446 tonnes of
contained copper and 587,882 ounces of silver. Total Group production
for the year ending December 31, 2005 was 19,177 tonnes of contained
copper and 1,721,768 ounces of silver.

- The Dikulushi copper-silver mine had record production for the
quarter of 6,085 tonnes of contained copper and 587,882 ounces of
silver and record production for the year of 17,816 tonnes of
contained copper and 1,721,768 ounces of silver.

- The Kulu mining and Heavy Media Separation (HMS) operation, the
development of which was funded from internal cash flow, was
commissioned during December 2005. As at December 31, 2005 1,361
tonnes of contained copper had been produced as an oxide concentrate
which was sold to a local Kolwezi smelter.

- A pre-feasibility study for a 30,000 tonne per annum Solvent
Extraction and Electrowinning (SXEW) plant for the Kulu coarse
rejects/tailings resource was completed in December 2005 indicating
operating cash costs of $0.49 per pound of cathode copper. A bankable
feasibility study for the development of an SXEW facility at Kulu has
subsequently been commissioned.

- Anvil released an upgraded mineral resource estimation for the Kulu
coarse rejects/tailings deposit in November 2005 which more than
doubled the Kulu resource to 255,000 tonnes of contained copper. An
updated NI 43-101 Technical Report for the Kulu deposit was lodged on
SEDAR in December 2005.

- Anvil finalized a 70% interest in the Kinsevere and Nambulwa Copper-
Cobalt projects in November 2005 and announced an initial resource of
348,000 tonnes of contained copper based on a drilling program
completed during the first half of 2005. A NI 43-101 Technical Report
for the Kinsevere Project was lodged on SEDAR in December 2005.

- A scoping study has been commenced on the development options for the
Kinsevere deposits. This study should be completed during the second
quarter of 2006.

- Anvil finalized a $15 million facility from Fortis Bank and a
C$6 million facility from Deans Knight Capital Management Limited in
December 2005.

Mine Production & Development

Dikulushi Mine (90%)


The Dikulushi mining and processing operations in the Democratic Republic of Congo (DRC) continued to outperform in all areas throughout the December 2005 quarter, achieving record production for both the quarter and the full year. Dikulushi Mine production for the four quarters to December 31, 2005 was as follows:

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DIKULUSHI MINE PRODUCTION BY QUARTERS
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March June September December Full
Quarter Quarter Quarter Quarter Year
2005 2005 2005 2005 2005
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Total Ore Processed
(tonnes) 80,812 81,518 120,822 127,222 410,374
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Head Grade (% Cu) 3.9 4.8 5.5 5.5 5.1
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Recovery in % (Cu) 82.1 85.7 86.7 86.3 85.6
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Copper Produced
(tonnes) 2,559 3,395 5,777 6,085 17,816
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Silver Produced
(ounces) 245,044 301,967 586,875 587,882 1,721,768
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The plant ran at an average throughput of 1,383 tonnes per day during the
fourth quarter of 2005 continuing to reflect an annualised rate of copper
production well in excess of the design capacity of 20,000 tonnes per annum of
contained copper. The increased capacity of the plant, following the
commissioning of the second ball mill in mid-2005, has enabled the Company to
economically treat a proportion of lower-grade stockpiled material, thereby
extending the life of the Dikulushi operation. The high-grade ore from the
bottom of the open pit, when mixed with lower-grade stockpiled material, has
resulted in an average grade through the plant of 5.1% copper for the year.
Additional drilling of the Dikulushi underground ore body is continuing
and is expected to be completed during the second quarter of 2006.

Kulu Mine (70%)

The Kulu HMS processing plant, located in the Kolwezi Region of the DRC,
underwent commissioning during December 2005, during which time some 2,493
tonnes of HMS concentrate was produced. The concentrate is being sold to a
smelter located in Kolwezi approximately six kilometres to the west of the
Kulu Mine. In addition, some 2,711 tonnes of oxide concentrates containing
650 tonnes of copper were purchased during the latter half of the year from
local operators on the Kulu leases.
With the installation of the scrubber during the first quarter of 2006,
production from the Kulu Mine is expected to increase to more than 5,000
tonnes of oxide concentrate per month by the end of the first quarter of 2006.
All concentrate from the Kulu Mine is being sold to a smelter in Kolwezi,
where it is treated to produce "black copper" ingots assaying approximately
85-90% copper.
A bankable feasibility study for an SXEW development at the Kulu Mine has
been commissioned and is expected to be completed during the third quarter of
2006.

Kinsevere Project (70%)

During the quarter, the acquisition of a 70% interest in the Kinsevere
and Nambulwa copper-cobalt projects was finalised. The joint venture partners
are La Générale des Carrières et des Mines (Gécamines) and Mining Company of
Katanga s.p.r.l (MCK). The agreement gives Anvil and MCK the mining rights for
the Kinsevere and Nambulwa copper-cobalt deposits located 27 km north-east of
Lubumbashi, the provincial capital of the Katanga Province of the DRC. The
terms and conditions of this agreement were announced in a News Release issued
by the Company on November 30, 2005.
A scoping study has been commenced on the development options for the
Kinsevere deposits. This study should be completed during the second quarter
of 2006.

Exploration

Kulu Mine (Kolwezi Region)

During the quarter, the Company more than doubled the Kulu resource
estimate to 255,000 tonnes of contained copper. This resource estimate, which
includes 4.3 million tonnes of Measured and Indicated Resource, is for the
first 12.5 kilometres of the coarse rejects/tailings deposit. The final
section of the deposit, between the 12.5 km to the 14 km marks is still being
sampled and evaluated. An updated Technical Report on the Kulu coarse
rejects/tailings resource was produced according to Canadian National
Instrument 43-101 and was filed on SEDAR in December 2005.

Kinsevere Project (Lubumbashi Region)

During the quarter, the Company announced an initial resource estimate to
a vertical depth of 100 metres of 348,000 tonnes of contained copper for the
Kinsevere project (which includes the Kinsevere, Tshifufia and Tshifufiamashi
deposits), following a drilling program comprising 5,675 metres of reverse
circulation (RC) drilling (84 drill holes) and 2,213 metres of diamond
drilling (14 drill holes) that had been carried out by Anvil and MCK during
2005. The results of this drilling program, which exceeded expectations, were
announced in the News Release issued by the Company on November 30, 2005.
During this program, a deep diamond drill hole drilled under the
Tshifufia Central deposit intersected 85 metres at an average grade of 9.5%
copper and 0.4% cobalt in the oxide zone (commencing 32 metres downhole),
immediately followed by an intersection of 64 metres at an average grade of
3.3% copper and 0.4% cobalt in the underlying sulphide zone, followed
immediately below by an intersection of 208 metres at an average grade of 3.2%
copper and 0.14% cobalt (see cross section in above mentioned News Release).
The Nambulwa prospect, located 30 kilometres to the north of Kinsevere is yet
to be drilled.
A Technical Report for the Kinsevere Project was produced according to
Canadian National Instrument 43-101 and filed on SEDAR in December 2005.

Corporate

financing

During December 2005, the Company obtained a two-year $15 million secured
facility from the Fortis Bank which will be used to repay the existing RMB
Resources Limited (RMB) facility of $6.9 million as well as completing the
Kulu Mine development and paying the balance of the acquisition cost of the
Mutoshi Project, both of which are located in the Katanga Province of the DRC.
In addition to the Fortis Bank secured facility, the Company has obtained
an eighteen-month unsecured loan of C$6 million from its major shareholder
Deans Knight Capital Management Ltd (Deans Knight). The Company will issue
600,000 two-year warrants with an exercise price of C$6.25 per share to Deans
Knight as part of the fee for providing the loan. The Company issued a News
Release on the Fortis Bank and Deans Knight financing on December 21, 2005.

Appointments

Vice President Exploration

Mr Nick Franey has been appointed Vice President Exploration. Nick has a
B.Sc. (Hons) in Mining Geology (Leicester, UK) and a M.Sc. in Mineral
Exploration (Rhodes, South Africa). Nick has worked in the mining industry for
over 25 years, as a field geologist, remote sensing specialist, target
generator, and exploration manager. In 2002, he was appointed a Vice President
Exploration for AngloAmerican, initially for Africa and more recently for the
Asia-Pacific region. While Nick has operated in 15 countries, on three
continents, he has spent most of his career based in Africa, including a
period based in the Central African Copperbelt, where the Group is currently
focused. Nick is a member of the Society of Economic Geologists and the
Australian Institute of Geoscientists.

Resident Manager - Kulu Mine, Kolwezi Region, DRC

Nicolas Pozniakov has been appointed Resident Manager of the Kulu Mine,
which was commissioned during December 2005. Nicolas graduated from TAFE New
South Wales College in Australia with an Engineering Surveying Certificate in
1975 and a Civil Engineering Certificate with Honours Grade in 1983. He also
earned a diploma in Geosciences from the Canberra Institute of Technology in
1983 and a Quarry Manager Certificate (Unrestricted) from the Western
Australian Department of Mines in 1990. Nicolas has more than 20 years of
multi-faceted experience in manufacturing, quarrying, mining, civil and
dredging industries at management and supervision levels in Australia and
New Zealand.

Resignation of Director and election of Chairman

On November 30, 2005, Mr Philip Pascall resigned as a non-Executive
Director of the Company. Mr Pascall's responsibilities and work load as
Executive Chairman of First Quantum Minerals Ltd were the reasons for his
departure from the Company's board. Mr Pascall made a vital contribution to
the Group's development during its formative years. Mr John Sabine, a non-
Executive Director of the Company since February 2004 was elected Chairman of
the Board at the beginning of November 2005.

Social & Community Development Programs

During the quarter, the Company built a six room school at the village of
Lumakete, located approximately 9 km to the north of the Dikulushi Mine. As a
result, a number of local employees of the Dikulushi Mine have relocated their
families to this village from more distant villages in order to be closer to
work and have their children attend the new school. The Lumakete school is the
second school to be built by the Company's Dikulushi operation. The Lumakete
school project was funded through a 10% interest in the project held by the
local community through a trust structure established several years ago. Other
projects have included the refurbishment of the Kilwa Hospital, establishing a
clinic for public access at Dikulushi, and preliminary work on two water
reticulation projects.

Additional Notes:

Caution Regarding Forward Looking Statements: The forward looking
statements made in this News Release are based on assumptions and judgments of
the management regarding future events and targeted production results. Such
forward-looking statements include, but are not limited to, those with respect
to mineral resource estimates, cash cost estimates for future developments,
including the Kulu copper deposit, 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 future results, performance
or achievements expressed or implied by such forward-looking statements. Such
factors include, among others, the actual prices of copper, results of current
exploration, feasibility study work, mine and plant development, processing
plant commissioning and mining activities, changes in project parameters and
plans, changes in the political environment in the countries in which the
Company operates, as well as those factors disclosed in the Company's filed
documents.



For further information

Bill Turner, President & CEO, Tel: +61 (8) 9481-4700, Email: [email protected] (Perth), Company Web site: www.anvil.com.au
Craig Munro, Vice President Corporate & Finance, Tel: +61 (8) 9481-4700, Email: [email protected] (Perth)
Robert La Vallière, Vice President Investor Relations, Telephone: Office (514) 448-6664, Cell (514) 944-9036, Email: [email protected]


Source: Anvil Mining Limited